UBS Group Downgrades Wix.com (NASDAQ:WIX) to Neutral

Wix.com (NASDAQ:WIX) was downgraded by UBS Group from a “buy” rating to a “neutral” rating in a report released on Thursday, MarketBeat Ratings reports. They presently have a $96.00 target price on the information services provider’s stock, down from their previous target price of $145.00. UBS Group’s target price would indicate a potential upside of 17.14% from the stock’s current price.

Several other analysts also recently commented on the company. Wells Fargo & Company reduced their target price on Wix.com from $176.00 to $137.00 and set an “overweight” rating for the company in a research note on Thursday, March 5th. Barclays dropped their price target on Wix.com from $205.00 to $160.00 and set an “overweight” rating on the stock in a research note on Thursday, March 5th. Royal Bank Of Canada cut their price target on Wix.com from $155.00 to $112.00 and set an “outperform” rating on the stock in a report on Thursday, March 5th. Needham & Company LLC reduced their price objective on Wix.com from $140.00 to $115.00 and set a “buy” rating for the company in a research note on Thursday, March 5th. Finally, Benchmark lowered their target price on Wix.com from $185.00 to $140.00 and set a “buy” rating on the stock in a research report on Monday, March 2nd. One investment analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Wix.com has a consensus rating of “Moderate Buy” and a consensus price target of $128.70.

Wix.com Price Performance

NASDAQ:WIX opened at $81.95 on Thursday. Wix.com has a twelve month low of $60.22 and a twelve month high of $191.24. The company has a fifty day moving average of $81.27 and a 200-day moving average of $107.82. The firm has a market capitalization of $4.78 billion, a P/E ratio of 101.17, a P/E/G ratio of 2.82 and a beta of 1.26.

Wix.com (NASDAQ:WIX) last issued its earnings results on Wednesday, March 4th. The information services provider reported $1.81 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.36 by $0.45. Wix.com had a net margin of 2.54% and a negative return on equity of 70.04%. The business had revenue of $524.27 million for the quarter, compared to analyst estimates of $527.69 million. During the same period in the prior year, the firm earned $2.10 earnings per share. Wix.com’s revenue was up 13.9% on a year-over-year basis. On average, analysts anticipate that Wix.com will post 3.65 EPS for the current fiscal year.

Wix.com declared that its Board of Directors has authorized a stock buyback plan on Wednesday, January 28th that allows the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization allows the information services provider to buy up to 40.5% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s board believes its shares are undervalued.

Institutional Trading of Wix.com

Institutional investors and hedge funds have recently modified their holdings of the stock. Ameriprise Financial Inc. boosted its position in shares of Wix.com by 128.3% during the third quarter. Ameriprise Financial Inc. now owns 4,637,795 shares of the information services provider’s stock valued at $823,813,000 after buying an additional 2,606,204 shares during the last quarter. Wellington Management Group LLP raised its position in Wix.com by 90.4% in the 3rd quarter. Wellington Management Group LLP now owns 3,390,589 shares of the information services provider’s stock valued at $602,270,000 after buying an additional 1,609,989 shares during the last quarter. Senvest Management LLC raised its position in Wix.com by 20.9% in the 4th quarter. Senvest Management LLC now owns 3,008,480 shares of the information services provider’s stock valued at $312,551,000 after buying an additional 519,805 shares during the last quarter. Lone Pine Capital LLC bought a new position in Wix.com during the 2nd quarter valued at $342,485,000. Finally, Dorsal Capital Management LP boosted its holdings in Wix.com by 50.0% during the 3rd quarter. Dorsal Capital Management LP now owns 1,575,000 shares of the information services provider’s stock worth $279,767,000 after acquiring an additional 525,000 shares during the last quarter. 81.52% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Wix.com

Here are the key news stories impacting Wix.com this week:

• Positive Sentiment: Company confirmed final results of its modified Dutch‑auction tender offer — substantial shares were tendered at the indicated clearing price (~$92) which implies a meaningful share count reduction and direct capital return that can boost EPS and underpin the stock. Read More.
• Positive Sentiment: Strong quarterly cash‑earnings beat and an ambitious buyback program helped fuel a prior rally (a ~28% jump last month), signaling both operational resiliency and shareholder‑friendly capital allocation. Those fundamentals likely attracted buyers ahead of and during the tender. Read More.
• Positive Sentiment: Wix traded higher at times despite broader market weakness, showing relative strength likely tied to the buyback and the recent earnings beat. Read More.
• Neutral Sentiment: Street consensus remains mildly constructive — an aggregate “moderate buy” analyst stance — which supports a base of investor demand but leaves room for divergent views. Read More.
• Neutral Sentiment: Coverage notes the stock “gained despite” UBS’s downgrade; the market reaction suggests buyback/earnings news can offset rating changes in the short term. Read More.
• Negative Sentiment: UBS downgraded Wix (from Buy to Neutral / Underweight in some reports) and cut the price target (reported to $96 from $145), citing a potential core business slowdown and concerns around the Base44 investment — analyst downgrades can pressure near‑term flows and sentiment. Read More.
• Negative Sentiment: Analysts and commentators note the stock is down since the earnings release (Zacks highlights an ~11.8% decline since earnings), pointing to modest revenue miss vs. expectations, EPS trailing last year, and valuation concerns — these raise caution despite the buyback. Read More.
• Negative Sentiment: Some intraday selling is attributed to tender‑offer mechanics (arbitrageurs and event holders exiting after settlement) plus recent downgrades amplifying outflows — a technical, short‑term headwind even if fundamentals remain intact. Read More.

Wix.com Company Profile

Wix.com Ltd. operates a cloud-based platform that enables individuals and businesses to create, manage and develop professional web presences through an intuitive drag-and-drop interface. The company’s software-as-a-service model provides hosting, customizable templates and a range of design tools, eliminating the need for coding expertise. Users can choose from a variety of premium plans to access custom domains, enhanced storage, and advanced performance features tailored to personal projects, small businesses and online storefronts.

Beyond its core website builder, Wix offers a suite of complementary services designed to support digital growth and marketing.