Wix.com Ltd. (WIX) Stock: Why It’s Headed For The Bottom

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Wix.com Ltd. (WIX) is working its way for to the top in the market in today’s trading session. The company, one that is focused on the technology industry, is currently trading at $134.29 after a move down of -5.49% so far in today’s session. When it comes to tech stocks, there are a number of aspects that have the ability to cause declines in the market. One of the most common is news. Here are the recent trending headlines centered around WIX:

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May-16-19 08:55AM Wix Earnings Miss Views, Revenue Outlook Light, Stock Falls
07:30AM Wix.com (WIX) Q1 Earnings Miss Estimates
05:03AM Wix.com: 1Q Earnings Snapshot
04:34AM Wix.com raises 2019 revenue outlook after Q1 tops estimates
02:35AM Israel’s Wix.com swings to Q1 profit, raises 2019 revenue outlook

However, when making a decision to invest, prospective investors should look at far more than news, this is especially the case in the ever evolving technology sector. Here’s what’s happening with Wix.com Ltd..

Trends That We’ve Seen From WIX

Although a single session decline, like what we’re seeing from Wix.com Ltd. might lead to fear in some investors, a single session move by itself shouldn’t be the basis of a decision to, or not to, invest in a stock. It is always a good idea to look at trends experienced by the stock further out than a single trading day. In the case of WIX, below are the movements that investors have experienced:

  • Past Seven Days – In the last 5 trading sessions, WIX has seen a price change that amounts to 0.99%.
  • Past Month – The return on investment from Wix.com Ltd. in the past month has been 13.69%.
  • Past Quarter – Over the past three months, the stock has produced a return on investment that comes to 18.99%
  • Past 6 Months – In the previous 6 months, we’ve seen a performance of 48.12% from the stock.
  • This Year So Far – Since the the last trading session of last year WIX has resulted in a return of 57.28%.
  • Annually – Lastly, throughout the last full year, investors have seen performance of 68.65% out of WIX. Over this period, the stock has sold at a high of -6.62% and a low price of 67.45%.

Rations That Investors Should Think About

Digging into a few key ratios having to do with a stock can give investors an understanding of how dangerous and/or potentially profitable a an investment option might be. Here are some of the most important ratios to think about when digging into WIX.

Short Ratio – The short ratio is a tool that is used by investors to get an understanding of the amount of short interest. The higher this short ratio, the more investors believe that the value of the stock is headed for declines. Throughout the sector, strong tech stocks tend to carry a lower short ratio. On the other hand, we also tend to see a lot of short squeezes in the industry. Nonetheless, in relation to Wix.com Ltd., it’s short ratio comes to 2.42.

Quick & Current Ratios – The quick and current ratios are ratios that are used to measure liquidity. Essentially, they measure whether or not a company can pay its debts when they come due using quick assets or current assets. In the tech industry, several companies rely on the continuation of support from investors as they work to bring new technologies to market, these ratios can look bad. However, some good picks in the technology sector do have positive current and quick ratios. In terms of WIX, the quick and current ratios add up to 2.10 and 2.10 respectively.  

Book To Share Value – The book to share value compares the the price of shares to the current book value of assets that are owned by the company. In this particular case, the book to share value ratio works out to 3.10.

Cash To Share Value – Finally, the cash to share value comparison compares the total amount of cash the company has on hand to the price of the company’s stock. When it comes to WIX, the cash to share value comes to 14.33.

Smart Money Follows Big Money

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in WIX, here’s what we’re seeing:

Institutions own 95.50% of the company. Institutional interest has moved by 0.26% over the past three months. When it comes to insiders, those who are close to the company currently own 3.14% percent of WIX shares. Institutions have seen ownership changes of an accumulative 0.00% over the last three months.

Analyst Opinions Of Wix.com Ltd.

Although it’s not a good idea to unknowingly follow the opinions of analysts, it is a smart idea to consider their analysis when validating your own thoughts when it comes to making an investment decision in the technology space. Here are the most recent moves that we’ve seen from analysts as it relates to WIX.

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Apr-29-19 Initiated KeyBanc Capital Markets Sector Weight
Mar-27-19 Initiated Macquarie Neutral
Mar-20-19 Initiated Guggenheim Buy
Feb-20-19 Downgrade Rosenblatt Neutral → Sell $75 → $73
Dec-19-18 Initiated Citigroup Buy

Earnings

What have ween seen from WIX in terms of financial results?Here’s the information:

  • Analyst Expectations – Currently, analysts expect that the company will create EPS of 1.69, with 0.05 to be reported in the next financial report. Although this data isn’t tide to earnings, since we’re talking on the topic of Wall Street analysts, WIX is currently rated a 1.90 considering a scale that ranges from 1 to 5 on which 1 is the worst average analyst rating and 5 is the best.
  • 5-Year Sales – Over the past 5 years, Wix.com Ltd. has reported a change in sales in the amount of 49.60%. Earnings per share over the last half decade have seen a change of 2.20%.
  • Quarter Over Quarter – In terms of quarter over quarter data, or Q/Q data as it is generally explained in today’s society, the company has created a earnings change by -59.50%. The company has also moved the needle when it comes to sales volume that amounts to 38.60%.

How Many Shares Of WIX Are Available?

Traders tend to be interested in the counts of shares both available and outstanding. In regard to Wix.com Ltd., there are currently 49.10M with a float of 48.30M. These numbers mean that out of the total of 49.10M shares of WIX currently in existence today, 48.30M are able to trade hands on the market.

I also like to dig into the short percentage of the float. After all, if a large portion of the float is shorted, the overall feeling among traders is that the company is headed for a deep dive. When it comes to WIX, the short percentage of the float is currently 4.00%. In general, high short percent of the float is any percentage over 40%. In my research, I have seen that a short percent of the float over 26% is probably going to be a risky play.

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