Shopify Inc. (NASDAQ:SHOP) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Analysts maintain a “Moderate Buy” consensus on Shopify, with 35 buy, 10 hold and one strong-buy ratings among 46 analysts. The average 12-month price target is $170.84, above the reported opening price of $152.90.
• Shopify’s latest quarterly results exceeded expectations, with earnings per share of $0.42 versus a $0.40 consensus estimate and revenue of $3.58 billion, up 33.7% year over year.
• Institutional investors own 69.27% of Shopify’s shares, with major firms including Norges Bank, Invesco, Geode Capital Management and Sands Capital expanding or initiating positions.

Shares of Shopify Inc. (NASDAQ:SHOP - Get Free Report) TSE: SHOP have received an average recommendation of "Moderate Buy" from the forty-six analysts that are covering the company, Marketbeat Ratings reports. Ten equities research analysts have rated the stock with a hold rating, thirty-five have assigned a buy rating and one has given a strong buy rating to the company. The average 12-month price target among analysts that have issued ratings on the stock in the last year is $170.8378.

A number of analysts have recently weighed in on the company. Oppenheimer reissued an "outperform" rating and issued a $175.00 price objective on shares of Shopify in a research report on Wednesday, May 6th. Jefferies Financial Group reiterated a "buy" rating and issued a $175.00 price target on shares of Shopify in a research note on Wednesday, August 5th. Royal Bank Of Canada set a $180.00 price target on Shopify and gave the stock an "outperform" rating in a report on Wednesday, August 26th. Cantor Fitzgerald raised their price target on Shopify from $127.00 to $145.00 and gave the stock a "neutral" rating in a report on Thursday, August 6th. Finally, Evercore restated an "outperform" rating and set a $175.00 price target (up from $135.00) on shares of Shopify in a research note on Wednesday, August 5th.

Shopify Price Performance

Shares of SHOP opened at $152.90 on Monday. The company has a market cap of $196.73 billion, a price-to-earnings ratio of 103.31, a price-to-earnings-growth ratio of 3.12 and a beta of 2.58. Shopify has a twelve month low of $94.00 and a twelve month high of $182.19. The company has a quick ratio of 5.35, a current ratio of 5.35 and a debt-to-equity ratio of 0.01. The company has a 50 day moving average of $130.97 and a two-hundred day moving average of $121.79.

Shopify (NASDAQ:SHOP - Get Free Report) TSE: SHOP last released its quarterly earnings results on Wednesday, August 5th. The software maker reported $0.42 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.40 by $0.02. The business had revenue of $3.58 billion for the quarter. Shopify had a net margin of 14.53% and a return on equity of 12.58%. Shopify's revenue for the quarter was up 33.7% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.69 earnings per share. As a group, analysts predict that Shopify will post 1.45 earnings per share for the current fiscal year.

Institutional Trading of Shopify

Institutional investors have recently bought and sold shares of the stock. Norges Bank purchased a new position in shares of Shopify in the fourth quarter worth $2,611,797,000. Invesco Ltd. grew its holdings in shares of Shopify by 9.8% during the fourth quarter. Invesco Ltd. now owns 14,026,193 shares of the software maker's stock valued at $2,257,796,000 after buying an additional 1,252,074 shares during the last quarter. Geode Capital Management LLC grew its holdings in shares of Shopify by 6.2% during the fourth quarter. Geode Capital Management LLC now owns 12,601,476 shares of the software maker's stock valued at $2,043,365,000 after buying an additional 737,892 shares during the last quarter. Mackenzie Financial Corp increased its position in shares of Shopify by 9.1% in the 4th quarter. Mackenzie Financial Corp now owns 9,961,097 shares of the software maker's stock valued at $1,627,352,000 after acquiring an additional 827,643 shares during the period. Finally, Sands Capital Management LLC increased its position in shares of Shopify by 37.0% in the 4th quarter. Sands Capital Management LLC now owns 9,506,036 shares of the software maker's stock valued at $1,530,187,000 after acquiring an additional 2,568,765 shares during the period. 69.27% of the stock is currently owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source