Wix.com Initiates $2 Billion Stock Buyback Program
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Buyback Program Launch: Wix.com has announced a plan to repurchase up to $2 billion of its ordinary shares and convertible notes during the FY2026-2027 period, reflecting the company's confidence in its intrinsic value.
- Diverse Funding Sources: The company intends to fund the buybacks through cash on hand and future cash generated from operations, while also considering raising additional capital via debt, equity, or equity-linked securities to enhance financial flexibility.
- Positive Market Reaction: Despite the market's overreaction to margin pressures, Wix.com has achieved a remarkable 314% EPS growth, indicating strong fundamentals, and the buyback program may further bolster investor confidence.
- Strategic Implications: This buyback initiative aims not only to enhance EPS but also to increase shareholder value by reducing the number of shares outstanding, reflecting the company's optimistic outlook on future growth.
Analyst Views on WIX
Wall Street analysts forecast WIX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for WIX is 172.24 USD with a low forecast of 135.00 USD and a high forecast of 210.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
18 Buy
1 Hold
0 Sell
Strong Buy
Current: 89.730
Low
135.00
Averages
172.24
High
210.00
Current: 89.730
Low
135.00
Averages
172.24
High
210.00
About WIX
Wix.com Ltd. (Wix) is an Israel-based company engaged in the provision of a web development platform enabling businesses and organizations to take businesses, brands, and workflow online. The Company provides solutions that business owners can use to operate various aspects of their business online, such as selling goods, taking reservations, and scheduling and confirming appointments. These applications provide Wix registered users a bespoke front-end for customers visiting their Website, as well as a back-end management dashboard. The Company has developed these software applications for businesses in specific verticals, including retail and online stores, service providers, hotel and property management, music, and restaurants. These vertical applications are integrated into the Company's Website templates or can be installed on any existing Website and set up by the user and without the need to write code.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
