What is the current market price relative to the implied price of the repurchase (e.g., is the stock trading at a discount to intrinsic value?) | WIX (Aug 11, 2025) | Candlesense
WIX

What is the current market price relative to the implied price of the repurchase (e.g., is the stock trading at a discount to intrinsic value?)

Valuation perspective:

Wix’s board has now authorized a $500 million buy‑back and has already spent $300 million buying back shares in 2025. Assuming the current share count of roughly 250 million outstanding (the figure used in the company’s recent filings), the $500 million program translates to an implicit “fair‑value” floor of about **$2 – $2.20 per share (i.e., the amount the company is willing to spend per outstanding share). The market, however, is pricing the stock around $28‑$30 per share (the prevailing NASDAQ level as of early August 2025). In other words, the market price is well above the implicit buy‑back price floor and is not trading at a discount to the intrinsic value implied by the repurchase program; it is instead priced at a premium to the cash‑per‑share figure the company has made available for repurchases.

Trading implications:

The sizable, newly‑authorized $200 million tranche signals that management believes the stock is still attractive and that there is still headroom for price appreciation before the program is exhausted. Technically, the stock is holding above its 50‑day moving average and has recently broken out of a modest consolidation zone, which suggests upside momentum. A common approach is to enter on pull‑backs (e.g., when the price retests the 200‑day moving average or the $27–$28 area) and place a stop‑loss just below the recent swing low (~$26), targeting the next resistance level around $32–$34. If the stock were to fall significantly below the $28‑$30 range, it would suggest that the market is starting to price in a discount relative to the buy‑back floor, offering a higher‑probability long entry. Conversely, a rapid rally above $35 could signal that the market has already priced in the buy‑back benefit and that the upside may be limited. Keep an eye on Israeli regulatory approvals and the company’s cash‑flow profile, as any delay in capital availability could cap the upside of the buy‑back‑driven catalyst.

Other Questions About This News

How might the buyback affect institutional ownership and potential activist pressure? What are the potential risks if the share price declines sharply after the buyback announcement? How will the additional $200 million buyback affect Wix's share price in the short term? What is the current level of free float and how much of it can be repurchased under the $500 million program? How does this buyback compare in size and timing to recent buybacks by Wix's peers in the SaaS/website‑builder space? What is the implied valuation and implied earnings per share impact after the expected repurchase? What is the remaining cash balance and liquidity profile to support a $200 million buyback? Will the increased buyback limit influence Wix's credit metrics or debt covenant compliance? How will this buyback affect Wix's weighted‑average cost of capital (WACC) and return on equity (ROE)? What are the tax implications for shareholders and the company under Israeli law for the buyback? How does the buyback align with Wix's broader capital allocation strategy (e.g., R&D, acquisitions, dividend policy)? What is the expected timing and pace of the repurchase, and could it create volatility or support in the market?