Wix.com (NASDAQ:WIX) to Repurchase $200.00 million in Outstanding Shares

Wix.com (NASDAQ:WIX) declared that its Board of Directors has initiated a stock buyback plan on Monday, August 11th, RTT News reports. The company plans to repurchase $200.00 million in outstanding shares. This repurchase authorization allows the information services provider to repurchase up to 2.9% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s board believes its shares are undervalued.

Wix.com Stock Performance

NASDAQ:WIX opened at $115.43 on Tuesday. Wix.com has a 52-week low of $114.89 and a 52-week high of $247.11. The firm has a market cap of $6.48 billion, a price-to-earnings ratio of 41.08, a PEG ratio of 1.97 and a beta of 1.27. The business’s fifty day moving average is $151.25 and its 200 day moving average is $170.86.

Wix.com (NASDAQ:WIX) last announced its earnings results on Wednesday, August 6th. The information services provider reported $2.28 earnings per share for the quarter, topping analysts’ consensus estimates of $1.79 by $0.49. The business had revenue of $489.93 million for the quarter, compared to analyst estimates of $487.62 million. Wix.com had a negative return on equity of 136.43% and a net margin of 8.90%. The company’s quarterly revenue was up 12.4% compared to the same quarter last year. During the same period in the prior year, the company earned $1.67 EPS. Equities analysts predict that Wix.com will post 3.65 EPS for the current fiscal year.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on WIX shares. Oppenheimer decreased their price objective on Wix.com from $250.00 to $220.00 and set an “outperform” rating for the company in a report on Wednesday, April 30th. Needham & Company LLC decreased their price objective on Wix.com from $250.00 to $200.00 and set a “buy” rating for the company in a report on Wednesday, August 6th. Piper Sandler decreased their price objective on Wix.com from $262.00 to $225.00 and set an “overweight” rating for the company in a report on Thursday, May 22nd. Scotiabank set a $255.00 price objective on Wix.com and gave the company a “sector outperform” rating in a report on Thursday, August 7th. Finally, Citigroup decreased their price objective on Wix.com from $280.00 to $238.00 and set a “buy” rating for the company in a report on Friday, April 25th. Two investment analysts have rated the stock with a hold rating, eighteen have issued a buy rating and three have given a strong buy rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Buy” and a consensus target price of $213.53.

About Wix.com

Wix.com Ltd., together with its subsidiaries, operates as a cloud-based web development platform for registered users and creators worldwide. The company offers Wix Editor, a drag-and-drop visual development and website editing environment platform; and Wix ADI that enables users to have the freedom of customization that the classic editor offers.