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NEW YORK - Wix.com Ltd. (NASDAQ: NASDAQ:WIX), a leading global SaaS platform, has authorized a new share repurchase program of up to $200 million of its securities, the company announced today. This move follows more than $1 billion in share repurchases since 2021, underscoring the Board's confidence in Wix's financial strength and commitment to shareholder value.
The repurchase program allows for the buyback of ordinary shares and/or convertible notes using various methods, including open market purchases or privately negotiated transactions, in compliance with U.S. securities laws. The timing and volume of repurchases will be subject to market conditions, legal requirements, and other factors.
The initiative does not require Wix to repurchase a set number of securities and may be suspended or discontinued at the company's discretion. Following a 30-day creditor objection period, repurchases may commence, reflecting recent regulatory changes that streamline the process for Israeli companies listed on foreign exchanges.
Wix, known for its website builder platform since 2006, has evolved into a comprehensive solution for creating and managing digital presence. The platform offers a range of tools for commerce, business, marketing, and AI technologies. Wix Studio further complements these offerings, targeting agencies and freelancers with advanced creation and management capabilities.
Funding for the repurchase program is expected to come from Wix's available cash and future cash flow from operations. The company's financial performance and liquidity, along with market and economic conditions, will influence the actual repurchases.
This statement contains forward-looking information subject to risks, uncertainties, and changes that may affect the company's actual results. Factors include market acceptance of new products, AI regulatory environment, macro-economic conditions, and more as detailed in the company's SEC filings.
The announcement is based on a press release statement from Wix.com Ltd. and does not constitute an endorsement of the company's strategies or future performance.
In other recent news, Wix.com Ltd. has been making significant strides in its market performance and strategic growth. The company's Q1 2024 bookings and revenue have exceeded consensus expectations, with analysts raising their price targets in response. The successful launch of the AI Website Builder and the upcoming introduction of verticalized AI Business Assistants underscore Wix.com's commitment to innovation.
Wix.com has also been proactive in capital management, completing a $225 million share buyback program, repurchasing approximately 3% of the company's total outstanding shares. This move highlights the company's confidence in its long-term growth prospects.
Analysts from firms such as BofA Securities, RBC Capital Markets, CFRA, and Benchmark have expressed confidence in Wix.com's prospects, raising their price targets based on strong Q1 results and promising financial outlooks. However, Piper Sandler downgraded the company from Overweight to Neutral, citing valuation concerns.
Wix.com has also recently launched the GenAI mobile app builder, a significant step in simplifying mobile app development. The tool, currently available globally in English, is targeted at users who subscribe to Wix's premium Branded App plan.
These developments highlight Wix.com's commitment to strategic growth, product innovation, and delivering value to its shareholders.
InvestingPro Insights
Wix.com Ltd. (NASDAQ: WIX) has demonstrated a robust commitment to enhancing shareholder value, as evidenced by its recent authorization of a new share repurchase program valued at up to $200 million. This initiative aligns with the company's historical pattern of aggressive share buybacks, a point underscored by an InvestingPro Tip that highlights management's ongoing strategy to repurchase shares. Such a strategy often reflects leadership's belief in the company's undervaluation and a positive outlook for future earnings potential.
On the financial performance front, Wix is expected to see net income growth this year, another key InvestingPro Tip that signals potential for increased profitability and financial health. This anticipated growth in net income could be a driving factor behind the confidence to engage in significant share repurchases.
Delving into the real-time metrics provided by InvestingPro, Wix's Market Cap stands at approximately $8.78 billion USD, showcasing the company's substantial size and market presence. Furthermore, the company's P/E Ratio is currently at 267.91, with an adjusted P/E Ratio for the last twelve months as of Q1 2024 at 196.07.
While these figures suggest a high earnings multiple, it is also important to note that the PEG Ratio for the same period is just under 1, at 0.99, indicating that the company's earnings growth rate is in line with its P/E ratio, which could be considered a favorable sign for investors looking at the company's future growth prospects.
Investors and potential shareholders interested in gaining a more comprehensive understanding of Wix's financial outlook and strategic positioning can access additional InvestingPro Tips by visiting https://www.investing.com/pro/WIX. Currently, there are 14 more InvestingPro Tips available that can provide deeper insights into Wix's market performance and valuation. For those looking to subscribe to InvestingPro for a more detailed analysis, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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