Arrowstreet Capital Limited Partnership Sells 5,073,528 Shares of Shopify Inc. $SHOP

Key Points

• Arrowstreet Capital sharply reduced its Shopify stake by 83.5% in the first quarter, selling more than 5 million shares and ending with 1,001,408 shares valued at about $118.8 million.
• Institutional ownership remains high, with hedge funds and other institutional investors holding about 69.27% of Shopify shares. Several major firms, including Vanguard and Norges Bank, also maintained or increased positions.
• Analysts remain mostly bullish on Shopify despite some mixed calls: the consensus rating is Moderate Buy with an average price target of $157.69, though Rothschild & Co Redburn recently cut the stock to Neutral/Equal Weight.

Arrowstreet Capital Limited Partnership lowered its position in shares of Shopify Inc. (NASDAQ:SHOP - Free Report) TSE: SHOP by 83.5% during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 1,001,408 shares of the software maker's stock after selling 5,073,528 shares during the period. Arrowstreet Capital Limited Partnership owned about 0.08% of Shopify worth $118,804,000 at the end of the most recent quarter.

A number of other hedge funds also recently added to or reduced their stakes in SHOP. Vanguard Group Inc. raised its stake in shares of Shopify by 1.5% in the fourth quarter. Vanguard Group Inc. now owns 50,670,627 shares of the software maker's stock worth $8,158,643,000 after purchasing an additional 743,803 shares during the last quarter. Norges Bank acquired a new stake in shares of Shopify during the 4th quarter valued at about $2,611,797,000. Invesco Ltd. increased its position in shares of Shopify by 9.8% in 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 in the last quarter. Geode Capital Management LLC boosted its holdings in Shopify by 6.2% in the 4th quarter. Geode Capital Management LLC now owns 12,601,476 shares of the software maker's stock worth $2,043,365,000 after buying an additional 737,892 shares during the last quarter. Finally, Mackenzie Financial Corp grew its holdings in shares of Shopify by 9.1% during the fourth quarter. Mackenzie Financial Corp now owns 9,961,097 shares of the software maker's stock worth $1,627,352,000 after buying an additional 827,643 shares in the last quarter. 69.27% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of research firms have commented on SHOP. Bank of America started coverage on shares of Shopify in a research report on Tuesday, July 7th. They issued a "buy" rating and a $150.00 target price on the stock. Needham & Company LLC reissued a "buy" rating and set a $180.00 target price on shares of Shopify in a research note on Tuesday, May 5th. Rothschild & Co Redburn set a $130.00 target price on Shopify and gave the company a "neutral" rating in a report on Tuesday. Susquehanna began coverage on shares of Shopify in a research report on Friday, July 10th. They set a "neutral" rating for the company. Finally, Barclays set a $126.00 target price on Shopify and gave the company an "equal weight" rating in a report on Wednesday, May 6th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating and nine have assigned a Hold rating to the company's stock. According to MarketBeat, Shopify has a consensus rating of "Moderate Buy" and an average price target of $157.69.

Shopify Price Performance

NASDAQ SHOP opened at $113.75 on Friday. The stock's 50-day moving average is $114.39 and its two-hundred day moving average is $122.13. Shopify Inc. has a fifty-two week low of $94.00 and a fifty-two week high of $182.19. The firm has a market cap of $147.61 billion, a P/E ratio of 112.62, a price-to-earnings-growth ratio of 2.45 and a beta of 2.58.

Shopify News Summary

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Citigroup lowered its price target on Shopify to $150 from $156 but kept a Buy rating, implying meaningful upside from current levels. Benzinga
• Positive Sentiment: Several analyst-focused articles highlighted Shopify as a buy and pointed to roughly 28% upside based on consensus price targets, which can support sentiment around the stock. Wall Street Analysts See Shopify (SHOP) as a Buy: Should You Invest?
• Positive Sentiment: Growth-oriented coverage continued to argue that Shopify’s strong fundamentals and growth profile could make it attractive for long-term investors. 3 Reasons Why Growth Investors Shouldn't Overlook Shopify (SHOP)
• Neutral Sentiment: Reports about Shopify merchants processing record GMV and the broader merchant ecosystem underscore platform momentum, but they were more of an industry/operating backdrop than a direct stock-moving announcement. DSCP Smart Fulfillment Addresses Critical Gap as Shopify Merchants Process Record $378 Billion in Annual Sales
• Negative Sentiment: Rothschild & Co Redburn cut Shopify to Hold, a downgrade that likely pressured the shares and signaled more caution on the stock’s near-term upside. Shopify NASDAQ: SHOP Cut to "Hold" at Rothschild & Co Redburn

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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