The shares of Shopify Inc (NYSE:SHOP) are 3.3% higher in premarket trading following a bull note from Goldman Sachs. The Wall Street analyst upgraded SHOP to "buy" from "neutral" and increased its price target to $74 from $67, pointing at the equity's attractive entry point after a shaky start to 2024.
Specifically, the e-commerce stock is down 24.5% year to date, with headwinds blowing in earlier this month after a downbeat quarterly report. Shopify stock yesterday closed at its lowest mark since November 2023, ending the session at $57.02.
Coming into today, analysts were split nearly down the middle. There are 39 analysts covering SHOP, with 19 saying "buy" or better, and 20 recommending a tepid "hold." This leaves plenty of room for more analysts to change their tune.
Options traders have favored calls of late, per Shopify stock's 10-day call/put volume ratio of 3.10 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks higher than 85% of readings from the past year.
These options are reasonably priced at the moment too, per the security's Schaeffer's Volatility Index (SVI) of 36%, which sits in the low 2nd percentile of its annual range. This means options traders are pricing in low volatility expectations at the moment.
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