Wix.com (NASDAQ:WIX) Shares Gap Up After Earnings Beat

Shares of Wix.com Ltd. (NASDAQ:WIX) gapped up before the market opened on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $69.75, but opened at $72.49. Wix.com shares last traded at $66.8810, with a volume of 599,432 shares trading hands.

The information services provider reported $1.42 EPS for the quarter, beating analysts’ consensus estimates of $1.40 by $0.02. Wix.com had a negative return on equity of 1.61% and a negative net margin of 8.19%. The company had revenue of $570.17 million during the quarter, compared to analyst estimates of $566.27 million. During the same period in the prior year, the company earned $1.80 earnings per share. The firm’s revenue was up 12.9% on a year-over-year basis.

Wix.com News Roundup

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

• Positive Sentiment: Q3 adjusted earnings of $1.42 per share and revenue of $570.17 million exceeded consensus estimates; revenue grew 12.9% year over year. Wix tops Q3 earnings and revenue estimates
• Positive Sentiment: Management expects revenue to improve in Q4 and for the full year, offering a constructive growth signal. Wix Q3 revenue rises; outlook improves
• Negative Sentiment: Bank of America cut its rating from Buy to Underperform and lowered its price target from $75 to $68, adding pressure after a sharp prior-session decline. Bank of America rating change
• Negative Sentiment: Wix reduced its 2026 cash-flow outlook, raising concerns about the quality of growth and overshadowing the quarterly earnings beat. Wix stock, downgrade and cash-flow outlook

Analyst Ratings Changes

WIX has been the subject of several analyst reports. Wedbush reissued a “neutral” rating on shares of Wix.com in a research note on Tuesday. Evercore set a $95.00 target price on Wix.com in a research note on Tuesday, August 4th. Wells Fargo & Company increased their price target on Wix.com from $46.00 to $64.00 and gave the stock an “equal weight” rating in a report on Wednesday, August 5th. Citigroup reiterated a “neutral” rating on shares of Wix.com in a report on Wednesday, August 12th. Finally, Royal Bank Of Canada raised their price target on Wix.com from $45.00 to $60.00 and gave the stock a “sector perform” rating in a research note on Wednesday, August 5th. Ten research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $89.33.

Insider Activity at Wix.com

In other news, CMO Omer Shai purchased 490 shares of the stock in a transaction dated Monday, August 31st. The shares were acquired at an average cost of $59.89 per share, for a total transaction of $29,346.10. Following the acquisition, the chief marketing officer owned 515,879 shares of the company’s stock, valued at approximately $30,895,993.31. This represents a 0.10% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Lior Shemesh bought 456 shares of the firm’s stock in a transaction that occurred on Monday, August 31st. The shares were purchased at an average cost of $59.89 per share, with a total value of $27,309.84. Following the transaction, the chief financial officer directly owned 221,567 shares of the company’s stock, valued at $13,269,647.63. The trade was a 0.21% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders have bought 2,622 shares of company stock valued at $157,032 over the last 90 days. Insiders own 6.20% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Senvest Management LLC raised its position in shares of Wix.com by 24.8% in the 1st quarter. Senvest Management LLC now owns 3,754,680 shares of the information services provider’s stock valued at $338,184,000 after purchasing an additional 746,200 shares during the last quarter. Hsbc Holdings PLC grew its position in Wix.com by 11,894.0% during the 1st quarter. Hsbc Holdings PLC now owns 3,529,474 shares of the information services provider’s stock worth $318,676,000 after purchasing an additional 3,500,047 shares during the last quarter. Arrowstreet Capital Limited Partnership increased its stake in Wix.com by 57.5% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,585,962 shares of the information services provider’s stock valued at $142,848,000 after purchasing an additional 578,729 shares in the last quarter. OMERS ADMINISTRATION Corp increased its stake in Wix.com by 7,102.6% during the 1st quarter. OMERS ADMINISTRATION Corp now owns 695,267 shares of the information services provider’s stock valued at $62,623,000 after purchasing an additional 685,614 shares in the last quarter. Finally, Renaissance Technologies LLC raised its holdings in shares of Wix.com by 52.1% in the first quarter. Renaissance Technologies LLC now owns 576,049 shares of the information services provider’s stock worth $51,885,000 after buying an additional 197,200 shares during the last quarter. 81.52% of the stock is owned by institutional investors and hedge funds.

Wix.com Price Performance

The stock’s fifty day simple moving average is $77.36 and its 200-day simple moving average is $70.42. The firm has a market cap of $3.90 billion, a PE ratio of -19.11, a PEG ratio of 38.27 and a beta of 1.06.

Wix.com Company Profile

Wix.com Ltd. is a cloud-based platform that enables individuals, businesses and organizations to create and manage websites. Its tools include customizable templates, a visual website editor and hosting, allowing users to build sites without advanced coding skills or develop more customized experiences.

The company also offers services for online businesses, including e-commerce features, appointment booking, payments, marketing tools and website analytics. Its products are designed to help customers manage multiple aspects of their online presence through one platform.

Founded in 2006, Wix is headquartered in Tel Aviv, Israel, and serves customers internationally.