Healthy Upside Potential: Wix.com Ltd. (WIX)

Wix.com Ltd. (NASDAQ: WIX) stock jumped 3.68% on Friday to $68.27 against a previous-day closing price of $65.85. With 1.12 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.23 million shares. During the session, the Software – Infrastructure company that operates in wider Technology sector, reached to the highest price of $69.58 whereas the lowest price it dropped to was $66.21. The 52-week range on WIX shows that it touched its highest point at $299.26 and its lowest point at $53.12 during that stretch. It currently has a 1-year price target of $93.00. Beta for the stock currently stands at 1.37.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of WIX was up-trending over the past week, with a rise of 14.26%, but this was down by -2.18% over a month. Three-month performance dropped to -16.74% while six-month performance fell -43.82%. The stock lost -76.81% in the past year, while it has lost -56.73% so far this year. A look at the trailing 12-month EPS for WIX yields -5.04 with Next year EPS estimates of -0.36. For the next quarter, that number is -0.34. This implies an EPS growth rate of 32.90% for this year and 72.20% for next year. EPS is expected to decline by -0.80% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -13.00%.

Float and Shares Shorts:

At present, 57.48 million WIX shares are outstanding with a float of 55.31 million shares on hand for trading. On Jul 14, 2022, short shares totaled 4.24 million, which was 7.37% higher than short shares on Jun 14, 2022. In addition to Mr. Avishai Abrahami as the firm’s Co-Founder, Honorary Chairman & CEO, Mr. Nir Zohar serves as its Pres & COO.

Institutional Ownership:

Through their ownership of 94.88% of WIX’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 55.33% of WIX, in contrast to 38.78% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in WIX with 12.66% of the stake, Baillie Gifford & Co. holds 7,245,476 shares worth 7,245,476. A second-largest stockholder of WIX, Flossbach von Storch AG, holds 4,531,581 shares, controlling over 7.92% of the firm’s shares. Jackson Square Partners LLC is the third largest shareholder in WIX, holding 3,631,516 shares or 6.34% stake. With a 4.64% stake in WIX, the Flossbach von Storch – Multiple O is the largest stakeholder. A total of 2,656,981 shares are owned by the mutual fund manager. The Principal Investors – Mid Cap Fun, which owns about 3.76% of WIX stock, is the second-largest Mutual Fund holder. It holds 2,150,387 shares valued at 140.96 million. Flossbach von Storch – Multiple O holds 2.10% of the stake in WIX, owning 1,199,500 shares worth 78.63 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for WIX since 18 analysts follow the stock currently. There are 9 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 8 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With WIX analysts setting a high price target of $160.00 and a low target of $68.00, the average target price over the next 12 months is $92.79. Based on these targets, WIX could surge 134.36% to reach the target high and fall by -0.4% to reach the target low. Reaching the average price target will result in a growth of 35.92% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. WIX will report FY 2022 earnings on 02/15/2023. Analysts have provided yearly estimates in a range of -$1.11 being high and -$1.84 being low. For WIX, this leads to a yearly average estimate of -$1.35. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Wix.com Ltd. surprised analysts by -$0.12 when it reported -$0.72 EPS against a consensus estimate of -$0.60. The surprise factor in the prior quarter was $0.00. Based on analyst estimates, the high estimate for the next quarter is -$0.16 and the low estimate is -$0.91. The average estimate for the next quarter is thus -$0.42.

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