Benchmark Has Lowered Expectations for Shopify (NASDAQ:SHOP) Stock Price

Key Points

• Benchmark cut its price target on Shopify from $195 to $145 but kept a "buy" rating, a target that implies about a 13% upside from the stock's current level.
• Analyst sentiment remains broadly positive with 27 Buy and 17 Hold ratings, an average target of $170.21, and an overall rating of "Moderate Buy".
• Shares rose 8.4% to $128.32 in the latest session; Shopify's market cap is $167.05B with a high P/E of 95.05 and a beta of 2.83, signaling rich valuation and elevated volatility.

Shopify (NASDAQ:SHOP - Get Free Report) TSE: SHOP had its price objective cut by equities research analysts at Benchmark from $195.00 to $145.00 in a report released on Tuesday,Benzinga reports. The firm presently has a "buy" rating on the software maker's stock. Benchmark's price target suggests a potential upside of 13.00% from the stock's current price.

Other equities research analysts have also recently issued reports about the stock. DZ Bank raised shares of Shopify from a "strong sell" rating to a "hold" rating in a research report on Thursday, November 6th. Citigroup reissued a "market outperform" rating on shares of Shopify in a research report on Thursday, December 4th. Zacks Research downgraded shares of Shopify from a "strong-buy" rating to a "hold" rating in a report on Wednesday, November 12th. Moffett Nathanson raised Shopify from a "neutral" rating to a "buy" rating in a report on Monday. Finally, Jefferies Financial Group reaffirmed a "hold" rating on shares of Shopify in a research note on Tuesday, February 3rd. Twenty-seven research analysts have rated the stock with a Buy rating and seventeen have given a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $170.21.

Shopify Trading Up 8.4%

SHOP traded up $9.92 on Tuesday, hitting $128.32. 8,642,028 shares of the company's stock traded hands, compared to its average volume of 10,152,055. Shopify has a one year low of $69.84 and a one year high of $182.19. The company's 50 day simple moving average is $153.73 and its 200-day simple moving average is $151.23. The firm has a market cap of $167.05 billion, a price-to-earnings ratio of 95.05, a P/E/G ratio of 3.30 and a beta of 2.83.

Institutional Trading of Shopify

A number of large investors have recently made changes to their positions in the stock. Kingdom Financial Group LLC. acquired a new position in shares of Shopify in the 4th quarter valued at $26,000. Mowery & Schoenfeld Wealth Management LLC purchased a new stake in shares of Shopify in the 4th quarter valued at approximately $29,000. Heartwood Wealth Advisors LLC acquired a new position in Shopify in the 3rd quarter worth approximately $27,000. Lloyd Advisory Services LLC. acquired a new stake in Shopify during the 4th quarter valued at $31,000. Finally, Lodestone Wealth Management LLC acquired a new stake in shares of Shopify in the fourth quarter worth $31,000. Institutional investors and hedge funds own 69.27% of the company's stock.

About Shopify

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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