Wix Stock Surges as Executives Cash In Tens of Millions
Wix's stock has more than doubled over the past year and a half, and executives have taken advantage by selling shares worth tens of millions of dollars. Who sold the most? How many shares do they still own? And when should investors pay attention to insider selling?
Wix.com (NASDAQ: WIX) may have dropped 15% in the past month due to slightly weaker guidance, but it has surged about 50% over the past 12 months, continuing its upward trajectory from the previous year. In fact, since its 2022 low, the stock has more than tripled, reaching a market cap of approximately $10.74 billion. As the seventh-largest Israeli company on Wall Street, Wix’s executives have turned this success into tens of millions of dollars in profits.
Tens of Millions in Insider Sales
Chairman Nir Zohar has sold approximately $11.97 million worth of shares over three separate transactions. The first sale occurred in May at around $170 per share, the second in August at roughly $163 per share, and the third in November at approximately $222 per share.
CFO Lior Shemesh also executed three sales. His first, at the end of May, brought in around $7.75 million at an average price of $165 per share. In November, he made two additional sales of $14.87 million and $14.43 million, respectively, at around $183 per share. Altogether, Shemesh pocketed approximately $37 million solely from selling shares.
- ניתוח: מניית WIX עולה - אבל התחזית אמורה להוריד אותה
- WIX מכה את הצפי בשורה העליונה והתחתונה ומעלה תחזיות
CEO Avishai Abrahami sold shares only once in this period, offloading roughly $9.85 million worth of stock at an average price of $197 per share in late 2023.
The total insider sales by these three executives during the period amount to approximately $58.87 million.
Other executives also cashed in. Chief Technology Officer Yaniv Even-Haim was the most recent seller, offloading about $17.38 million worth of shares this past January. Chief Marketing Officer Omer Shai sold shares in three separate transactions over the past year, totaling approximately $11.25 million.
Executives Still Hold Significant Stakes
Even before these sales, Wix’s executives were financially secure. But these transactions underscore just how lucrative their stock holdings have been. Shemesh, for instance, has become a multi-millionaire just from his stock sales over the past year.
Despite the recent sales, executives still hold substantial equity in the company. Based on Wix’s 2023 financial reports and this year’s stock sales:
- Nir Zohar owns about 836,726 shares, currently worth approximately $167.34 million.
- Lior Shemesh holds 309,687 shares, valued at $62 million.
- Avishai Abrahami, who hasn’t sold shares in 2024, still controls 2,164,694 shares, worth $433 million.
Did Wix Executives Sell at the Right Time?
Interestingly, most insider sales were not executed at peak prices. Wix stock hit a high of $240–$245 in January. The executive who came closest to timing the top was CTO Yaniv Even-Haim, who sold in early January at $214 per share. The highest per-share price achieved was by Chairman Nir Zohar, who sold in late November at $222 per share. The average sale price across all insider transactions was around $184 per share.
Should Investors Be Concerned About Insider Selling?
We consistently monitor large insider sales at major companies, as they can provide insight into what executives think about the company’s future. Executives have better knowledge of the business than retail investors, and their sales can sometimes serve as a warning sign.
That said, insider sales are not always a red flag. We’ve previously covered significant executive sales at SolarEdge before the stock plummeted, and highlighted sales by NICE CEO Barak Eilam just before disappointing earnings sent shares tumbling. While insider selling can be a warning, it does not always indicate trouble ahead.
Wix’s stock has surged over the past 18 months, so it makes sense that executives would want to cash out some of their holdings. Their remaining stakes still serve as an incentive to drive the company forward. And despite some disappointment over the latest guidance, Wix’s business remains strong and continues to grow.
Still, we’ll keep an eye on future insider sales across various companies—because when executives sell, it’s always worth paying attention.
