Shopify Inc. (NASDAQ:SHOP) Stock Rated "Moderate Buy" by Wall Street Analysts

Key Points

• Analysts maintain a “Moderate Buy” consensus on Shopify, with 36 buy, 10 hold and 2 strong-buy ratings. The average 12-month price target is $175.89, while several firms recently raised their targets to between $158 and $185.
• Institutional investors own 69.27% of Shopify’s shares, with several major funds increasing their positions during the first quarter.
• Shopify reported quarterly revenue of $3.58 billion, up 33.7% year over year, and adjusted earnings of $0.42 per share, exceeding estimates by $0.02. The stock opened at $171.06 and has traded between $94.00 and $182.19 over the past year.

Shares of Shopify Inc. (NASDAQ:SHOP - Get Free Report) TSE: SHOP have received an average rating of "Moderate Buy" from the forty-eight ratings firms that are currently covering the company, Marketbeat.com reports. Ten research analysts have rated the stock with a hold recommendation, thirty-six have given a buy recommendation and two have issued a strong buy recommendation on the company. The average 1 year price target among analysts that have issued ratings on the stock in the last year is $175.89.

Several equities research analysts have recently commented on the stock. Evercore restated an "outperform" rating and issued a $175.00 price target (up from $135.00) on shares of Shopify in a report on Wednesday, August 5th. Wells Fargo & Company reaffirmed an "overweight" rating and issued a $180.00 price target (up from $144.00) on shares of Shopify in a research report on Friday, August 7th. Deutsche Bank Aktiengesellschaft increased their price objective on shares of Shopify from $175.00 to $185.00 and gave the company a "buy" rating in a research note on Thursday, August 6th. Cantor Fitzgerald increased their price objective on shares of Shopify from $145.00 to $158.00 and gave the company a "neutral" rating in a research note on Monday, October 12th. Finally, Weiss Ratings raised shares of Shopify from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday.

Institutional Trading of Shopify

A number of hedge funds have recently bought and sold shares of the stock. The Manufacturers Life Insurance Company boosted its stake in shares of Shopify by 8.5% during the 1st quarter. The Manufacturers Life Insurance Company now owns 8,418,903 shares of the software maker's stock worth $998,137,000 after acquiring an additional 660,198 shares in the last quarter. Swiss National Bank grew its position in shares of Shopify by 27.0% during the 1st quarter. Swiss National Bank now owns 4,115,300 shares of the software maker's stock valued at $487,580,000 after acquiring an additional 876,100 shares during the period. Sumitomo Mitsui Trust Group Inc. grew its position in shares of Shopify by 4.1% during the 1st quarter. Sumitomo Mitsui Trust Group Inc. now owns 3,678,602 shares of the software maker's stock valued at $436,356,000 after acquiring an additional 145,500 shares during the period. Bank of New York Mellon Corp grew its position in shares of Shopify by 4.8% during the 1st quarter. Bank of New York Mellon Corp now owns 3,495,964 shares of the software maker's stock valued at $414,691,000 after acquiring an additional 159,873 shares during the period. Finally, Amova Asset Management Americas Inc. grew its position in shares of Shopify by 5.0% during the 1st quarter. Amova Asset Management Americas Inc. now owns 3,458,265 shares of the software maker's stock valued at $410,219,000 after acquiring an additional 165,080 shares during the period. Hedge funds and other institutional investors own 69.27% of the company's stock.

Shopify Price Performance

SHOP opened at $171.06 on Tuesday. Shopify has a 12-month low of $94.00 and a 12-month high of $182.19. The company has a current ratio of 5.35, a quick ratio of 5.35 and a debt-to-equity ratio of 0.01. The business's fifty day simple moving average is $149.54 and its 200-day simple moving average is $128.73. The company has a market capitalization of $220.09 billion, a price-to-earnings ratio of 115.58, a PEG ratio of 3.50 and a beta of 2.62.

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, beating the consensus estimate of $0.40 by $0.02. Shopify had a return on equity of 12.58% and a net margin of 14.53%. The firm had revenue of $3.58 billion for the quarter. During the same quarter in the prior year, the business posted $0.69 EPS. The business's quarterly revenue was up 33.7% on a year-over-year basis. On average, equities research analysts anticipate that Shopify will post 1.46 earnings per share for the current fiscal year.

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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