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

Key Points

• Analysts maintain a constructive view of Shopify: Forty-seven firms give the stock a consensus “Moderate Buy” rating, including 35 buys and two strong buys, with an average 12-month price target of $172.13.
• Shopify’s growth outlook is supported by AI and commerce partnerships. Meta’s Muse shopping agent can complete purchases through Shopify’s Shop Pay, while partner Zefir reported more than $530 million in attributed WhatsApp revenue for Shopify brands.
• Valuation remains a key risk. Shopify trades at a high trailing P/E of about 98, and shares have faced profit-taking after a rally despite strong quarterly results, including 33.7% year-over-year revenue growth and an EPS beat.

Shares of Shopify Inc. (NASDAQ:SHOP - Get Free Report) TSE: SHOP have been given an average rating of "Moderate Buy" by the forty-seven research firms that are covering the stock, Marketbeat reports. Ten analysts have rated the stock with a hold rating, thirty-five have issued a buy rating and two have assigned a strong buy rating to the company. The average 12 month price objective among brokers that have issued a report on the stock in the last year is $172.13.

A number of research analysts recently issued reports on SHOP shares. Rothschild & Co Redburn set a $130.00 price objective on Shopify and gave the stock a "neutral" rating in a report on Tuesday, July 21st. Susquehanna began coverage on Shopify in a research report on Friday, July 10th. They set a "neutral" rating for the company. The Goldman Sachs Group raised their price target on shares of Shopify from $170.00 to $194.00 and gave the stock a "buy" rating in a research note on Thursday, August 6th. Cantor Fitzgerald lifted their price objective on shares of Shopify from $127.00 to $145.00 and gave the company a "neutral" rating in a report on Thursday, August 6th. Finally, Sanford C. Bernstein assumed coverage on shares of Shopify in a research report on Thursday, September 10th. They issued an "outperform" rating and a $160.00 price objective on the stock.

Shopify News Summary

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Meta AI checkout partnership supports long-term growth. Meta’s Muse shopping agent can browse Shopify stores and complete purchases through Shop Pay. Shopify says agent-driven orders carry economics similar to conventional online-store transactions, potentially expanding checkout volume and monetization without requiring merchants to change platforms. Amazon Blocked Meta's AI Shopping Agent. Shopify Welcomed It -- and Gets Paid on Every Checkout.
• Positive Sentiment: Analyst support remains constructive. Wedbush reaffirmed an “outperform” rating and set a $176 price target, implying meaningful upside from the referenced share price. Wedbush Shopify rating and price target
• Positive Sentiment: Third-party commerce data highlights ecosystem momentum. Shopify partner Zefir reported more than $530 million in attributed WhatsApp revenue for Shopify brands across 317 e-commerce businesses, underscoring potential demand for social-commerce and automated marketing tools. Zefir Surpasses $530 Million in WhatsApp Revenue for Shopify Brands
• Neutral Sentiment: Short-interest data is inconclusive. One report describes a large September increase but also lists total short interest at zero shares and zero days to cover, suggesting a likely data inconsistency rather than a dependable trading signal.
• Negative Sentiment: Profit-taking and valuation concerns continue to pressure the stock. After the Meta-related rally, Shopify shares declined as the initial enthusiasm faded. Commentary also notes that earnings-estimate revisions do not currently support another sustained advance, while the stock’s elevated valuation leaves it vulnerable to disappointment. Shopify Moves Higher: Will This Strength Last?

Institutional Trading of Shopify

Large investors have recently added to or reduced their stakes in the company. QRG Capital Management Inc. increased its stake in shares of Shopify by 54.1% during the 2nd quarter. QRG Capital Management Inc. now owns 7,047 shares of the software maker's stock worth $805,000 after purchasing an additional 2,474 shares during the last quarter. Envestnet Portfolio Solutions Inc. increased its position in Shopify by 2.8% during the second quarter. Envestnet Portfolio Solutions Inc. now owns 29,858 shares of the software maker's stock worth $3,409,000 after buying an additional 812 shares during the last quarter. Andra AP fonden raised its stake in Shopify by 50.3% in the second quarter. Andra AP fonden now owns 278,312 shares of the software maker's stock valued at $31,778,000 after buying an additional 93,100 shares during the period. Premier Financial Group acquired a new stake in shares of Shopify in the second quarter valued at approximately $48,000. Finally, Security National Bank of SO Dak acquired a new stake in shares of Shopify in the second quarter valued at approximately $69,000. Institutional investors and hedge funds own 69.27% of the company's stock.

Shopify Price Performance

Shares of SHOP opened at $145.16 on Friday. The stock has a 50 day simple moving average of $138.01 and a 200 day simple moving average of $123.91. Shopify has a 52-week low of $94.00 and a 52-week high of $182.19. 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 firm has a market capitalization of $186.77 billion, a PE ratio of 98.08, a P/E/G ratio of 3.00 and a beta of 2.61.

Shopify (NASDAQ:SHOP - Get Free Report) TSE: SHOP last announced its earnings results on Wednesday, August 5th. The software maker reported $0.42 EPS for the quarter, topping the consensus estimate of $0.40 by $0.02. The firm 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%. The business's quarterly revenue was up 33.7% on a year-over-year basis. During the same quarter last year, the business posted $0.69 earnings per share. Sell-side analysts predict that Shopify will post 1.46 EPS for the current fiscal year.

Shopify Company Profile

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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