NEW YORK - Wix.com Ltd. (NASDAQ:WIX), a leading global SaaS platform for website creation, has concluded its $225 million share repurchase plan, the company announced today. The buyback, authorized by its Board of Directors in August 2023, involved the repurchase of 1,676,623 of its ordinary shares. This quantity represents about 3% of the company's total outstanding shares.
The shares were bought back at an average price of approximately $134.20 per share, based on volume-weighted calculations. This move is part of Wix's strategy to manage its capital structure and deliver value to its shareholders.
Wix, established in 2006, is known for providing a robust platform that allows users to create, manage, and grow their digital presence. The platform is recognized for its enterprise-grade performance, security, and infrastructure reliability.
Wix offers a suite of business solutions, including advanced tools for commerce, marketing, and search engine optimization. It empowers users to take control of their brand and customer relationships by leveraging continuous innovation and regularly introducing new features and products.
The company's leading position is supported by data indicating that it has the highest number of active live sites compared to key competitors, as well as figures from independent third-party sources and internal data as of the fourth quarter of 2023.
The completion of this share repurchase program underscores Wix's commitment to its financial strategy and its confidence in the company's long-term growth prospects. The information regarding the share repurchase is based on a press release statement from Wix.com Ltd.
InvestingPro Insights
Following the completion of its substantial share repurchase program, Wix.com Ltd. (NASDAQ:WIX) appears to be aligning with a strategy that emphasizes shareholder value. The repurchase, which accounted for approximately 3% of the company's total outstanding shares, aligns with an InvestingPro Tip highlighting that management has been aggressively buying back shares. This is often seen as a sign of confidence from management in the company's future prospects and a commitment to returning value to shareholders.
On the financial front, Wix's market capitalization stands at $9.52 billion, indicating a strong presence in the market for this SaaS leader. However, the company's Price to Earnings (P/E) ratio is significantly high at 289.73, suggesting that investors are willing to pay a premium for its shares based on current earnings.
This is further supported by an adjusted P/E ratio for the last twelve months as of Q1 2024 at 212.59, reinforcing the notion of a high valuation. Furthermore, Wix's revenue growth of 13.18% over the last twelve months demonstrates the company's ability to expand its financial top line in a competitive environment.
Investors looking to delve deeper into the intricacies of Wix's financials and strategic moves can find more InvestingPro Tips at https://www.investing.com/pro/WIX. For instance, analysts have revised their earnings upwards for the upcoming period, and the company is expected to grow its net income this year. Moreover, Wix does not pay dividends, which could be an important consideration for income-focused investors.
For those interested in accessing a comprehensive list of InvestingPro Tips, including insights on Wix's trading multiples and return metrics, consider subscribing to InvestingPro. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. In total, there are 17 additional tips available on InvestingPro that could further inform investment decisions surrounding Wix.com Ltd.
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