Shopify (NASDAQ:SHOP) Trading Down 7% – Time to Sell?

by · The Markets Daily

Shopify Inc. (NASDAQ:SHOP – Get Free Report) (TSE:SHOP)’s share price fell 7% on Wednesday . The company traded as low as $155.40 and last traded at $155.80. 2,848,323 shares traded hands during trading, a decline of 41% from the average session volume of 4,818,289 shares. The stock had previously closed at $167.44.

Wall Street Analyst Weigh In

SHOP has been the topic of several research analyst reports. Scotiabank upgraded Shopify from a “sector perform” rating to an “outperform” rating and upped their price objective for the company from $165.00 to $200.00 in a research note on Thursday, January 8th. CIBC reaffirmed an “outperform” rating on shares of Shopify in a research report on Wednesday, November 5th. Barclays set a $140.00 price target on Shopify and gave the stock an “equal weight” rating in a research note on Wednesday, November 5th. BNP Paribas Exane initiated coverage on Shopify in a research note on Monday, November 24th. They issued a “neutral” rating on the stock. Finally, DA Davidson increased their target price on shares of Shopify from $185.00 to $195.00 and gave the stock a “buy” rating in a research report on Wednesday, November 5th. Twenty-four equities research analysts have rated the stock with a Buy rating and twenty-one have issued a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $171.61.

Check Out Our Latest Stock Analysis on Shopify

Shopify Price Performance

The company has a market cap of $202.94 billion, a PE ratio of 115.47, a PEG ratio of 4.99 and a beta of 2.83. The firm’s 50 day moving average is $160.05 and its 200 day moving average is $148.90.

Shopify (NASDAQ:SHOP – Get Free Report) (TSE:SHOP) last announced its quarterly earnings results on Tuesday, November 4th. The software maker reported $0.27 EPS for the quarter, beating the consensus estimate of $0.24 by $0.03. The firm had revenue of $2.84 billion during the quarter, compared to the consensus estimate of $2.75 billion. Shopify had a net margin of 16.65% and a return on equity of 11.72%. As a group, analysts anticipate that Shopify Inc. will post 1.12 EPS for the current year.

Hedge Funds Weigh In On Shopify

A number of institutional investors have recently added to or reduced their stakes in the business. Mirae Asset Global Investments Co. Ltd. raised its position in Shopify by 171.3% in the 2nd quarter. Mirae Asset Global Investments Co. Ltd. now owns 423,295 shares of the software maker’s stock worth $48,827,000 after purchasing an additional 267,271 shares during the period. Sumitomo Mitsui Trust Group Inc. boosted its position in shares of Shopify by 4.4% during the second quarter. Sumitomo Mitsui Trust Group Inc. now owns 5,231,257 shares of the software maker’s stock valued at $603,425,000 after buying an additional 218,829 shares during the period. TriaGen Wealth Management LLC bought a new position in shares of Shopify during the third quarter valued at approximately $2,562,000. Oppenheimer Asset Management Inc. raised its holdings in shares of Shopify by 9.6% in the second quarter. Oppenheimer Asset Management Inc. now owns 400,389 shares of the software maker’s stock worth $46,185,000 after buying an additional 35,113 shares during the period. Finally, Charles Schwab Investment Management Inc. raised its holdings in shares of Shopify by 2.6% in the second quarter. Charles Schwab Investment Management Inc. now owns 2,622,495 shares of the software maker’s stock worth $301,869,000 after buying an additional 67,260 shares during the period. 69.27% of the stock is currently owned by institutional investors.

Shopify Company Profile

(Get Free Report)

Shopify is a Canadian commerce technology company that provides a cloud-based platform for businesses to create, manage and scale online and physical retail stores. Its core offering is a software-as-a-service e-commerce platform that enables merchants to build customizable storefronts, manage product catalogs, process orders, and handle inventory. Shopify also supports omnichannel selling through integrated point-of-sale (POS) systems for in-person transactions.

Beyond storefront software, Shopify offers a range of merchant services and tools designed to simplify commerce operations.

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