Wix.Com Ltd (WIX): Steadfast Capital Management Reports New Passive Stake

Robert PittsSteadfast Capital Management is bullish on Wix.Com Ltd (NASDAQ:WIX) and has recently added the company to its equity portfolio. As a new filing with the Securities and Exchange Commission showed, Steadfast owns 2.53 million ordinary shares of Wix.com, which represent 6.6% of class. The stake is passive by nature.


Wix.Com Ltd (NASDAQ:WIX) is an Israel-based web development platform. The company operates under a freemium and subscription models and has more than 900,000 premium subscribers. Its stock dropped by more than 19% since the beginning of the year, underperforming its peers from the Internet content industry, which appreciated by approximately 5% year-to-date. However since it went public in November 2013, its stock grew by 24%. The stock declined this year despite the company reporting a growth in its revenues and net profit for the last several quarters. For the July-September period, its revenue went up to around $38 million from $34 million in the previous quarter, while its net loss narrowed to $0.34 from $0.37.

Nevertheless, even though Wix.Com Ltd (NASDAQ:WIX) boasts a significant revenue growth, it hasn’t received a lot of attention from institutional investors. During the third quarter, Brian Ashford-Russell and Tim Woolley’s Polar Capital added the stock to its equity portfolio and owns around 150,200 shares as of the end of September, while Richard Driehaus’ Driehaus Capital inched down its stake by some 9,300 shares to 94,600 shares.

Analysts, on the other hand, are bullish on Wix.Com Ltd (NASDAQ:WIX)’s prospects, as the stock has a consensus rating ‘Buy’ and an average target price of around $25.00. A couple of months ago, Northland Securities initiated coverage on the stock and set an ‘Outperform’ rating, with an price target of $22.00.

Steadfast Capital Management operates an equity portfolio valued at more than $5.92 billion, spread across many sectors, with a slight focus on Basic Materials, Healthcare and Technology stocks. The largest position in the fund’s equity portfolio is represented by Allergan, Inc. (NYSE:AGN), of which the investor owns around 2.22 million shares as of the end of September. Being initiated during the second quarter, Allergan proved to be a profitable bet for Steadfast as the stock appreciated by more than 30% over the last six months on the back of a takeover attempt by Bill Ackman‘s Pershing Square and Valeant Pharmaceuticals Intl Inc (NYSE:VRX). However, Allergan has recently entered into a deal to be acquired by Actavis plc (NYSE:ACT) for $219 per share in stock and cash.

Disclosure: none