Quick Look:
- Market cap of $9.35B, the stock price at $168.02, nearing a 1-year high, a P/E ratio of 305.49.
- Consensus ‘Moderate Buy’ with an average target price of $146.00, featuring 13 buy ratings and 2 hold ratings.
- Q1 EPS of $1.22, beating expectations; revenue of $403.80M, up 13.7% YoY; net margin at 2.12%.
Wix.com, a leading cloud-based development platform, has recently attracted significant investor interest. The company’s stock, listed on NASDAQ under the ticker WIX, has shown impressive performance. Moreover, it gained attention from financial analysts and institutional investors alike.
Wix.com Market Cap Reaches $9.35 Billion, Stock Hits $168.02
Wix.com boasts a market capitalisation of $9.35 billion. On Monday, the stock price stood at $168.02, significantly increasing towards its 1-year high of $170.41. Over the past year, the stock had dipped to a low of $73.39, showing a remarkable recovery. The company’s price-to-earnings (P/E) ratio is at a lofty 305.49.
With a price/earnings-to-growth (PEG) ratio of 4.67, reflecting high investor expectations for future growth. The stock exhibits a beta of 1.34, indicating relatively higher volatility than the market. The 50-day moving average is $131.01, and the 200-day moving average is $122.68, suggesting strong upward momentum in the stock price.
Analysts Announce ‘Moderate Buy’ with $146 Average Target
Several financial analysts have weighed in on Wix.com, providing a range of ratings and price targets. Needham & Company LLC has issued a ‘Buy’ rating. Besides, B. Riley upgraded its price objective from $120.00 to $141.00, rating the stock as ‘Overweight’ as of February 22nd. UBS Group increased its target from $155.00 to $160.00 and maintained a ‘Buy’ rating on the same date.
Conversely, Morgan Stanley adjusted its price objective downward from $157.00 to $143.00, rating it as ‘Equal Weight’ on April 17th. Raymond James assumed coverage with an ‘Outperform’ rating and a target price of $160.00 on March 27th, while Piper Sandler boosted their target from $146.00 to $165.00, giving an ‘Overweight’ rating on February 22nd. The consensus among analysts is a ‘Moderate Buy’, with an average target price of $146.00, supported by 13 buy ratings and 2 hold ratings.
Wix.com Reports $403.80M Revenue, $1.22 EPS in Q1
Wix.com’s latest quarterly earnings, released on February 21st, exceeded analysts’ expectations. The company reported earnings per share (EPS) of $1.22, surpassing the consensus estimate of $0.98. Revenue for the quarter was $403.80 million, slightly below the anticipated $416.87 million but still reflecting a year-over-year growth of 13.7%. This performance marked a significant improvement from the previous year’s EPS of ($0.42). For the current year, the expected EPS is 1.16. Despite these gains, the company’s net margin remains modest at 2.12%, and the return on equity is notably negative at -40.56%.
81.52% Institutional Ownership; New Investments Surge
Institutional ownership of Wix.com stands at a substantial 81.52%. Therefore underscoring confidence from large investors. HighMark Wealth Management LLC and Northwest Bank & Trust Co initiated new positions in the fourth quarter, each worth $26,000. Fidelis Capital Partners LLC acquired a new stake valued at $37,000 in the first quarter. Headlands Technologies LLC entered with a $45,000 stake in the third quarter, while Principal Securities Inc. took a new position worth $93,000 in the fourth quarter. These investments reflect growing institutional interest in the company’s long-term potential.
Wix.com Stock Jumps 19% to Year-High Levels
On Monday, Wix.com’s stock experienced a notable surge, rising by 19% by 10 a.m. ET. This increase brought the stock to its highest level in over a year, signifying strong investor sentiment and market confidence.
Wix.com reported over $100 million in free cash flow for the first quarter, with full-year guidance now set at approximately $450 million, an increase from the previous estimate of $400 million three months ago. This is a significant leap from the $182 million in free cash flow reported last year, highlighting the company’s robust financial health and operational efficiency.
$450M Free Cash Flow for 2024, Up from $400M
The company’s growth strategy is focused on leveraging its suite of AI products, which have been a key driver of its recent success. In the first quarter, revenue growth was 12% year-over-year, and for the full year 2024, the company expects growth from 11% to 13%. Management’s strategy includes launching new products to increase customer adoption and spending. However, it is worth noting that management has excluded expenses for the new headquarters from its free cash flow calculations, which presents a more favourable financial outlook than might otherwise be the case.
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