Wix.com (NASDAQ:WIX) Stock Price Down 7.4% After Analyst Downgrade

Shares of Wix.com Ltd. (NASDAQ:WIX) traded down 7.4% during mid-day trading on Wednesday after Citizens Jmp downgraded the stock from a market outperform rating to a market perform rating. The stock traded as low as $75.66 and last traded at $75.0050. 2,087,885 shares changed hands during trading, a decline of 21% from the average session volume of 2,645,672 shares. The stock had previously closed at $80.99.

WIX has been the subject of several other reports. Jefferies Financial Group lowered their target price on shares of Wix.com from $200.00 to $130.00 and set a “buy” rating for the company in a report on Monday, February 23rd. Scotiabank lowered their target price on shares of Wix.com from $175.00 to $125.00 and set a “sector outperform” rating for the company in a report on Thursday, March 5th. Needham & Company LLC lowered their target price on shares of Wix.com from $140.00 to $115.00 and set a “buy” rating for the company in a report on Thursday, March 5th. Royal Bank Of Canada lowered their target price on shares of Wix.com from $155.00 to $112.00 and set an “outperform” rating for the company in a report on Thursday, March 5th. Finally, Wall Street Zen lowered shares of Wix.com from a “buy” rating to a “hold” rating in a report on Sunday, March 8th. One research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, five have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, Wix.com presently has an average rating of “Moderate Buy” and a consensus price target of $128.70.

Key Headlines Impacting Wix.com

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

• Positive Sentiment: Some analysts and commentators argue Wix’s steep multi‑year share decline has made it an attractive “affordable growth” candidate for longer‑term investors — a narrative that could support buying interest if fundamentals stabilize. Is Wix.com Among The Most Affordable Growth Stocks For The Next 5 Years?
• Neutral Sentiment: Zacks highlights Wix as a trending stock among its users and lays out key metrics and risks for investors considering a position — useful context but not a fresh catalyst. Wix.com Ltd. (WIX) Is a Trending Stock: Facts to Know Before Betting on It
• Neutral Sentiment: A Yahoo Finance piece asks whether it’s time to reassess Wix after the prolonged share decline — framing the story for investors but not adding a new operational or financial update. Is It Time To Reassess Wix.com (WIX) After Its Steep Multi‑Year Share Price Fall
• Neutral Sentiment: Unusually large options volume was reported around WIX, indicating speculative or hedging activity that can amplify intraday moves but does not by itself change fundamentals. Options flow can increase volatility around earnings or corporate events. Wix.com Target of Unusually Large Options Trading (NASDAQ:WIX)
• Negative Sentiment: Citizens/JMP downgraded Wix from “market outperform” to “market perform,” cutting the stock’s analyst sentiment and likely reducing buy‑side conviction in the near term. Citizens downgrades Wix.com (WIX)
• Negative Sentiment: Coverage shifts and additional downgrades followed the company’s Dutch auction of shares, with some brokers flagging the sale and subsequent rating changes as reasons to reprice risk and dampen near‑term demand. Wix.com receives another downgrade following Dutch auction of shares
• Negative Sentiment: Reporting on a Dutch auction of shares itself is a negative near‑term catalyst — it increases float/dilution concerns and prompted reassessments by index/coverage committees, pressuring the stock while investors digest the capital‑structure change. Wix.com (NASDAQ:WIX) Rating Shift Draws Nasdaq Index Focus

Hedge Funds Weigh In On Wix.com

A number of hedge funds have recently added to or reduced their stakes in WIX. Ameriprise Financial Inc. raised its holdings in Wix.com by 128.3% in the 3rd quarter. Ameriprise Financial Inc. now owns 4,637,795 shares of the information services provider’s stock worth $823,813,000 after acquiring an additional 2,606,204 shares during the last quarter. Lone Pine Capital LLC purchased a new position in Wix.com in the 2nd quarter worth approximately $342,485,000. Wellington Management Group LLP raised its holdings 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 worth $602,270,000 after acquiring an additional 1,609,989 shares during the last quarter. Diamond Hill Capital Management Inc. purchased a new position in Wix.com in the 4th quarter worth approximately $150,622,000. Finally, Atreides Management LP purchased a new stake in Wix.com during the 4th quarter valued at $129,598,000. 81.52% of the stock is currently owned by hedge funds and other institutional investors.

Wix.com Stock Performance

The firm has a fifty day moving average price of $80.65 and a two-hundred day moving average price of $105.18. The stock has a market capitalization of $4.34 billion, a P/E ratio of 91.83, a PEG ratio of 2.82 and a beta of 1.26.

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

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

About Wix.com

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.