Shopify's (SHOP) Outperform Rating Reiterated at Wedbush

Key Points

• Wedbush reiterated its “outperform” rating on Shopify and set a $176 price target, implying approximately 19% upside. The broader analyst consensus is “Moderate Buy,” with a $171.34 consensus target.
• Shopify reported quarterly revenue of $3.58 billion, up 33.7% year over year, while adjusted EPS of $0.42 exceeded expectations by $0.02.
• Institutional investors increased their exposure to Shopify during the second quarter, and hedge funds and other institutions now own approximately 69.27% of the company.

Shopify (NASDAQ:SHOP - Get Free Report) TSE: SHOP's stock had its "outperform" rating reissued by analysts at Wedbush in a research report issued on Wednesday, Benzinga reports. They presently have a $176.00 price target on the software maker's stock. Wedbush's price objective indicates a potential upside of 19.13% from the company's current price.

Several other equities analysts have also recently weighed in on SHOP. The Goldman Sachs Group raised their price target on Shopify from $170.00 to $194.00 and gave the company a "buy" rating in a report on Thursday, August 6th. Piper Sandler reiterated an "overweight" rating and set a $180.00 target price (up from $172.00) on shares of Shopify in a research report on Tuesday, September 8th. Rothschild & Co Redburn set a $130.00 price target on shares of Shopify and gave the stock a "neutral" rating in a research report on Tuesday, July 21st. Jefferies Financial Group reaffirmed a "buy" rating and set a $175.00 price target on shares of Shopify in a research note on Wednesday, August 5th. Finally, Wells Fargo & Company reissued an "overweight" rating and issued a $180.00 price objective (up from $144.00) on shares of Shopify in a research note on Friday, August 7th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating and ten have issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $171.34.

Shopify Price Performance

SHOP opened at $147.74 on Wednesday. The company has a debt-to-equity ratio of 0.01, a quick ratio of 5.35 and a current ratio of 5.35. The stock has a market capitalization of $190.09 billion, a PE ratio of 99.82, a price-to-earnings-growth ratio of 2.80 and a beta of 2.61. The stock's 50 day moving average price is $137.23 and its 200-day moving average price is $123.75. 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 announced its quarterly earnings results on Wednesday, August 5th. The software maker reported $0.42 EPS for the quarter, topping analysts' consensus estimates of $0.40 by $0.02. Shopify had a return on equity of 12.58% and a net margin of 14.53%.The company had revenue of $3.58 billion during the quarter. During the same period in the previous year, the business earned $0.69 EPS. The business's revenue was up 33.7% compared to the same quarter last year. On average, equities research analysts predict that Shopify will post 1.46 EPS for the current year.

Institutional Trading of Shopify

A number of hedge funds and other institutional investors have recently bought and sold shares of SHOP. Andra AP fonden boosted its stake in shares of Shopify by 50.3% during the second quarter. Andra AP fonden now owns 278,312 shares of the software maker's stock valued at $31,778,000 after purchasing an additional 93,100 shares during the period. Premier Financial Group purchased a new stake in Shopify in the 2nd quarter valued at about $48,000. Security National Bank of SO Dak bought a new position in Shopify in the 2nd quarter worth about $69,000. Wellington Altus USA Inc. increased its position in shares of Shopify by 977.6% during the second quarter. Wellington Altus USA Inc. now owns 7,953 shares of the software maker's stock worth $946,000 after acquiring an additional 7,215 shares during the period. Finally, Anchor Investment Management LLC raised its stake in shares of Shopify by 33.6% during the second quarter. Anchor Investment Management LLC now owns 11,432 shares of the software maker's stock valued at $1,305,000 after acquiring an additional 2,875 shares in the last quarter. Hedge funds and other institutional investors own 69.27% of the company's stock.

Shopify News Summary

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Meta’s Muse partnership is the main catalyst. Meta’s AI shopping agent, Muse, can browse Shopify-powered stores and complete purchases using Shopify’s Shop Pay checkout. Investors see the agreement as a way for Shopify to gain transaction volume, merchant visibility and relevance in the emerging “agentic commerce” market. Shopify Brings Shop Pay Checkout Solution to Meta’s Muse AI Agent
• Positive Sentiment: Shopify may benefit from a favorable strategic position versus Amazon. Amazon is reportedly blocking Muse, while Shopify is enabling the AI agent across its merchant network. That contrast supports the view that Shopify could become an important infrastructure provider as consumers increasingly shop through AI assistants. Amazon and Shopify Make Starkly Different Moves in the Brewing Battle Over AI Shopping
• Positive Sentiment: Third-party adoption highlights broader checkout demand. India-focused messaging company MSG91 is promoting a Shopify checkout solution for direct-to-consumer brands, potentially supporting merchant adoption and international usage of Shopify’s commerce tools. The report does not disclose a direct financial contribution to Shopify. MSG91 Expands Into E-Commerce
• Neutral Sentiment: Options activity signals bullish speculation but adds no fundamental change. Trading data showed unusually heavy call-option volume in Shopify, suggesting increased short-term investor interest. Options activity can amplify volatility, but it does not by itself indicate future operating results. Shopify Sees Unusually Large Options Volume

About Shopify

Shopify Inc NASDAQ: SHOP is a commerce technology company that provides tools for businesses of various sizes to start, operate and grow retail operations. Its platform enables merchants to create and manage online stores, sell through social media and other digital channels, and support in-person sales through Shopify's point-of-sale solutions.

Shopify's products and services include online storefront and website-building tools, payment processing through Shopify Payments, point-of-sale hardware and software, inventory and order management, shipping and fulfillment tools, marketing features, analytics, and financing services for eligible merchants.

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