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NEW YORK - Wix.com Ltd. (NASDAQ:WIX), a prominent SaaS platform for website creation and currently valued at $13.3 billion, announced the completion of its $200 million share repurchase initiative. This buyback program, which was authorized by the company's Board of Directors in July 2024, involved the repurchase of 868,026 outstanding ordinary shares. These shares represent roughly 1.5% of the total shares outstanding and were bought back at an approximate volume-weighted average price of $230.41 per share. According to InvestingPro data, the stock is currently trading near its 52-week high of $246.82.
The repurchase program is part of Wix's broader strategy to manage its capital structure and return value to its shareholders. Share buybacks are a common tactic used by companies to reinvest in themselves by reducing the number of shares available on the market, potentially leading to an increase in the value of remaining shares. The strategy appears to be working, as InvestingPro data shows an impressive 85% return over the past year, with the company maintaining a moderate debt level and strong revenue growth of 12.6%.
Wix.com Ltd., founded in 2006, positions itself as a leader in the website building industry, enabling a wide range of users including self-creators, agencies, and enterprises to develop and enhance their online presence. The platform boasts a comprehensive suite of commerce and business solutions, advanced search engine optimization (SEO), and marketing tools. Wix emphasizes its commitment to innovation by continuously introducing new features and products that support the creation of powerful and sophisticated digital platforms.
The company's performance and market positioning are based on its claim of having the highest number of active live sites compared to its competitors, as supported by third-party data and the company's internal figures for the first half of 2024.
The completion of this share repurchase program reflects Wix's confidence in its financial health and its dedication to shareholder interests. The information reported here is based on a press release statement from Wix.com Ltd.
In other recent news, Wix.com has been the subject of several analyst upgrades and positive revisions in price targets. Morgan Stanley (NYSE:MS) upgraded Wix.com's stock from Equalweight to Overweight, citing growth in the Self-Creators segment and advancements in artificial intelligence. Benchmark noted sustainable free cash flow growth for Wix, while Piper Sandler raised the Wix.com target to $249 based on strong growth. Needham increased its target for Wix.com due to a positive growth outlook, and RBC Capital Markets raised the price target for Wix.com shares, attributing this to AI-driven growth.
All firms noted Wix.com's impressive third-quarter performance, with an adjusted earnings per share of $1.50 and revenue of $444.7 million, a 13% year-over-year increase. This performance was largely driven by a 16% surge in bookings growth, attributed to the company's Studio product, AI innovations, and robust commerce activity. Wix.com's management team has raised its full-year 2024 revenue guidance to a range of $1.757-$1.764 billion, up from the earlier forecast of $1.747-$1.761 billion.
The introduction of new AI-related products across its subscription services in 2025 is expected to enhance Wix.com's offerings and potentially boost its financial performance. The firm's analysts anticipate a positive financial trajectory for Wix.com, with expectations of sustained growth and improved free cash flow. These recent developments reflect the company's positive performance and forward-looking strategy.
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