AIA Group Ltd Sells 41,948 Shares of Shopify Inc. $SHOP

Key Points

• AIA Group cut its Shopify stake by 33.1% in the third quarter, selling 41,948 shares and ending with 84,905 shares worth about $12.6 million.
• Shopify reported quarterly revenue of $3.74 billion, up about 32% year over year, and earnings of $0.49 per share, beating estimates; gross merchandise volume rose 29% but came in slightly below expectations.
• Analysts’ average rating was “Moderate Buy,” with an average price target of $177.92. Institutional investors collectively owned 69.27% of Shopify’s stock.

AIA Group Ltd decreased its holdings in shares of Shopify Inc. (NASDAQ:SHOP - Free Report) TSE: SHOP by 33.1% during the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 84,905 shares of the software maker's stock after selling 41,948 shares during the quarter. AIA Group Ltd's holdings in Shopify were worth $12,591,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors have also bought and sold shares of the business. Fortitude Family Office LLC purchased a new stake in Shopify during the 3rd quarter worth about $29,000. MADDEN SECURITIES Corp purchased a new position in Shopify during the 3rd quarter valued at about $30,000. Laurel Wealth Advisors LLC purchased a new position in Shopify during the 3rd quarter valued at about $32,000. Graney & King LLC bought a new stake in shares of Shopify during the first quarter valued at about $27,000. Finally, Trellis Wealth Advisors LLC bought a new stake in shares of Shopify during the third quarter valued at about $37,000. 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: Third-quarter revenue rose 32% to about $3.74 billion, while earnings of $0.49 per share beat estimates. Operating income also climbed 66%, and the company’s fourth-quarter outlook was described as upbeat. Why Shopify Stock Dove Today
• Positive Sentiment: Shopify highlighted continued AI-commerce momentum: traffic from AI sources increased 2.6 times, and Shop Pay gross merchandise volume rose 50%. Management said shopping through AI channels is growing quickly. Shopify Q3 Earnings Call Highlights
• Neutral Sentiment: The company reported $119.1 billion in gross merchandise volume, up 29% year over year. That reflects solid business growth, but fell just short of Wall Street’s roughly $120 billion estimate. Shopify falls after Q3 results
• Negative Sentiment: The slight GMV shortfall, alongside misses on revenue and subscription revenue versus some analyst estimates, appears to have outweighed the earnings beat. Investors also reacted to concerns about profitability and spending, including AI computing costs and infrastructure investment ahead of the holiday season. Shopify Stock Plunges As Q3 Gross Operating Profit, Revenue Miss

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on the stock. Bank of America assumed coverage on shares of Shopify in a report on Tuesday, July 7th. They issued a "buy" rating and a $150.00 price target on the stock. Seaport Research Partners reaffirmed a "buy" rating and set a $180.00 price objective on shares of Shopify in a research note on Thursday, October 8th. National Bank Financial reaffirmed an "outperform" rating and set a $180.00 target price (up from $155.00) on shares of Shopify in a report on Wednesday, August 5th. Barclays set a $145.00 target price on shares of Shopify and gave the stock an "equal weight" rating in a report on Thursday, August 6th. Finally, Susquehanna assumed coverage on shares of Shopify in a research note on Friday, July 10th. They issued a "neutral" rating on the stock. Three analysts have rated the stock with a Strong Buy rating, thirty-six have given a Buy rating and ten have given a Hold rating to the stock. According to data from MarketBeat, Shopify has an average rating of "Moderate Buy" and an average target price of $177.92.

Shopify Price Performance

Shares of NASDAQ SHOP opened at $142.57 on Wednesday. The stock's 50-day simple moving average is $152.77 and its two-hundred day simple moving average is $130.13. Shopify Inc. has a twelve month low of $94.00 and a twelve month high of $180.88. The firm has a market capitalization of $183.44 billion, a P/E ratio of 96.33, a P/E/G ratio of 3.23 and a beta of 2.65. The company has a quick ratio of 5.35, a current ratio of 5.35 and a debt-to-equity ratio of 0.01.

Shopify (NASDAQ:SHOP - Get Free Report) TSE: SHOP last issued its quarterly earnings results on Tuesday, November 3rd. The software maker reported $0.49 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.33 by $0.16. The firm had revenue of $3.74 billion during the quarter. Shopify had a return on equity of 12.58% and a net margin of 14.53%. The business's revenue was up 31.6% compared to the same quarter last year. During the same quarter last year, the business posted $0.34 EPS. As a group, equities analysts anticipate that Shopify Inc. will post 1.46 EPS for the current fiscal year.

About Shopify

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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