Here's Why Wix Stock Popped Today
Shares of web content-creation company Wix.com (NASDAQ: WIX) popped on Monday after activist investor Starboard announced a large stake in the company late Friday afternoon. As of 10:10 a.m. ET, Wix stock was up 10%.
According to a filing with the Securities and Exchange Commission (SEC) on Friday, Starboard (across its various funds) has purchased nearly 5.2 million shares of Wix, or about 9% of the company. Shares were purchased gradually over August and September, and prices primarily ranged from the low $60 per-share range to the mid $70 per-share range.
In the filing, Starboard said that it bought Wix stock because shares "were undervalued and represented an attractive investment opportunity." To that point, it's true that Wix is trading at one of its lowest price-to-sales (P/S) valuations ever.
Source Fool.com
