Shopify (NASDAQ:SHOP) Stock Price Expected to Rise, Citigroup Analyst Says

Key Points

• Citigroup raised Shopify’s price target from $196 to $216 and maintained a “buy” rating, implying approximately 30% upside from the previous close.
• Analyst sentiment remains positive: Shopify has a consensus “Moderate Buy” rating and an average price target of $177.79, supported by multiple buy, overweight and outperform recommendations.
• Shopify reported quarterly revenue of $3.58 billion, up 33.7% year over year, and earnings of $0.42 per share, exceeding analysts’ $0.40 estimate. The stock recently traded at $165.81, with institutional investors owning 69.27% of shares.

Shopify (NASDAQ:SHOP - Get Free Report) TSE: SHOP had its price objective upped by equities researchers at Citigroup from $196.00 to $216.00 in a report issued on Tuesday, BayStreet reports. The firm presently has a "buy" rating on the software maker's stock. Citigroup's target price would suggest a potential upside of 30.27% from the company's previous close.

Other equities analysts have also issued reports about the stock. Truist Financial set a $180.00 price objective on shares of Shopify and gave the company a "buy" rating in a research report on Wednesday, August 5th. Piper Sandler reiterated an "overweight" rating on shares of Shopify in a research note on Monday, October 5th. Royal Bank Of Canada reissued an "outperform" rating and issued a $200.00 price target (up from $180.00) on shares of Shopify in a report on Friday, October 16th. Cantor Fitzgerald boosted their price target on shares of Shopify from $145.00 to $158.00 and gave the company a "neutral" rating in a research report on Monday, October 12th. Finally, Wells Fargo & Company reaffirmed an "overweight" rating and issued a $180.00 price target (up from $144.00) on shares of Shopify in a report on Friday, August 7th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating and ten have assigned a Hold rating to the company's stock. Based on data from MarketBeat, Shopify has a consensus rating of "Moderate Buy" and a consensus price target of $177.79.

Shopify Stock Performance

NASDAQ:SHOP traded down $2.37 on Tuesday, reaching $165.81. 3,265,968 shares of the company's stock were exchanged, compared to its average volume of 10,233,971. The firm has a market cap of $213.34 billion, a price-to-earnings ratio of 112.03, a P/E/G ratio of 3.48 and a beta of 2.62. The company has a debt-to-equity ratio of 0.01, a current ratio of 5.35 and a quick ratio of 5.35. The stock has a fifty day simple moving average of $151.11 and a 200-day simple moving average of $130.31. Shopify has a 52 week low of $94.00 and a 52 week high of $182.19.

Shopify (NASDAQ:SHOP - Get Free Report) TSE: SHOP last released its quarterly earnings data on Wednesday, August 5th. The software maker reported $0.42 earnings per share for the quarter, beating analysts' consensus estimates of $0.40 by $0.02. The business had revenue of $3.58 billion during the quarter. Shopify had a net margin of 14.53% and a return on equity of 12.58%. The firm's quarterly revenue was up 33.7% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.69 earnings per share. As a group, sell-side analysts predict that Shopify will post 1.46 earnings per share for the current year.

Institutional Investors Weigh In On Shopify

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Signal Advisors Wealth LLC boosted its stake in Shopify by 0.5% in the 3rd quarter. Signal Advisors Wealth LLC now owns 12,589 shares of the software maker's stock worth $1,867,000 after buying an additional 60 shares during the last quarter. Midway Capital Research & Management grew its stake in shares of Shopify by 0.5% during the 3rd quarter. Midway Capital Research & Management now owns 14,008 shares of the software maker's stock valued at $2,077,000 after buying an additional 65 shares during the period. Eagle Wealth Advisors LLC raised its position in shares of Shopify by 3.0% in the 3rd quarter. Eagle Wealth Advisors LLC now owns 2,330 shares of the software maker's stock worth $346,000 after buying an additional 67 shares during the period. Tsfg LLC raised its holdings in shares of Shopify by 4.0% in the 2nd quarter. Tsfg LLC now owns 2,028 shares of the software maker's stock worth $232,000 after purchasing an additional 78 shares during the period. Finally, Obermeyer Wealth Partners grew its holdings in shares of Shopify by 2.8% during the 3rd quarter. Obermeyer Wealth Partners now owns 2,955 shares of the software maker's stock worth $438,000 after purchasing an additional 80 shares during the period. 69.27% of the stock is currently owned by institutional investors.

Shopify Company Profile

Shopify Inc is a commerce technology company that provides tools for businesses of various sizes to start, operate and grow online and in physical retail environments. Its platform supports online storefronts, product and inventory management, order processing, marketing, analytics and customer engagement.

The company offers subscription-based plans and merchant solutions, including Shopify Payments, Shopify POS, Shopify Capital and tools for shipping, checkout and fulfillment. Shopify also supports sales through multiple channels, such as merchants' own websites, mobile devices, social media and third-party marketplaces.

Shopify was founded in 2006 by Tobias Lütke, Daniel Weinand and Scott Lake after the founders developed an online store for snowboarding equipment.

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