Cornerstone Enterprises LLC Sells 6,546 Shares of Shopify Inc. $SHOP

Key Points

• Cornerstone Enterprises LLC reduced its Shopify position by 61.4% in the third quarter, selling 6,546 shares and retaining 4,114 shares valued at approximately $610,000.
• Institutional investors own 69.27% of Shopify, while analysts maintain a generally positive outlook. The stock has a “Moderate Buy” consensus rating and an average price target of $175.37.
• Shopify reported quarterly revenue of $3.58 billion, up 33.7% year over year, and exceeded EPS estimates. However, its elevated valuation— including a P/E ratio of 139.11—leaves the shares vulnerable to a pullback if growth or guidance disappoints.

Cornerstone Enterprises LLC cut its position in Shopify Inc. (NASDAQ:SHOP - Free Report) TSE: SHOP by 61.4% during the 3rd quarter, according to the company in its most recent disclosure with the SEC. The firm owned 4,114 shares of the software maker's stock after selling 6,546 shares during the period. Cornerstone Enterprises LLC's holdings in Shopify were worth $610,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Fortitude Family Office LLC bought a new stake in shares of Shopify in the 3rd quarter valued at $29,000. Graney & King LLC acquired a new position in Shopify in the first quarter valued at about $27,000. Evolution Wealth Management Inc. grew its stake in Shopify by 203.9% in the first quarter. Evolution Wealth Management Inc. now owns 231 shares of the software maker's stock valued at $27,000 after acquiring an additional 155 shares during the period. Roxbury Financial LLC grew its stake in Shopify by 171.0% in the third quarter. Roxbury Financial LLC now owns 271 shares of the software maker's stock valued at $40,000 after acquiring an additional 171 shares during the period. Finally, Sankala Group LLC bought a new stake in shares of Shopify in the fourth quarter worth about $44,000. 69.27% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

SHOP has been the subject of several recent analyst reports. Citizens Jmp increased their price target on Shopify from $150.00 to $185.00 and gave the stock a "market outperform" rating in a report on Thursday, August 6th. Morgan Stanley cut Shopify from an "overweight" rating to a "buy" rating in a report on Monday, July 13th. Phillip Securities lowered Shopify from a "strong-buy" rating to a "moderate buy" rating in a research report on Monday, August 17th. Bank of America initiated coverage on Shopify in a research note on Tuesday, July 7th. They set a "buy" rating and a $150.00 target price for the company. Finally, Sanford C. Bernstein initiated coverage on Shopify in a research note on Thursday, September 10th. They set an "outperform" rating and a $160.00 target price for the company. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating and ten have given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $175.37.

Key Headlines Impacting Shopify

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Analyst targets point to further upside. Robert W. Baird raised its price target from $160 to $190 and maintained an “outperform” rating. Jefferies also sees potential gross merchandise volume upside, supporting optimism ahead of Shopify’s next earnings report. Analyst targets and earnings outlook
• Positive Sentiment: AI commerce is strengthening Shopify’s growth narrative. Analysts are highlighting Shopify’s payments network, Shop Pay, and integrations that allow third-party AI agents—including Meta’s Muse—to complete purchases across Shopify merchants. The company’s second-quarter gross merchandise volume rose 32% year over year to $116 billion, adding to expectations for continued momentum. Shopify AI commerce infrastructure
• Positive Sentiment: Strong recent performance and cash generation are attracting holders. Shopify has gained substantially since mid-July, while commentary points to an approximately 18% free-cash-flow margin and a business that is materially larger than at its prior record close. These factors support the long-term bull case, although they may also encourage profit-taking. Shopify free cash flow margin
• Neutral Sentiment: Shopify’s API update creates implementation work for merchants and app developers. Changes affecting checkout data, metafield filters, shipping rates, and tax recalculation could require updates to custom apps and integrations. The changes are unlikely to alter Shopify’s long-term outlook but may create short-term friction. Shopify October API update
• Negative Sentiment: Valuation and caution from some analysts remain risks. A Seeking Alpha downgrade recommended waiting for a better entry point after the sharp rally. With Shopify trading at a high earnings multiple, disappointing guidance or weaker-than-expected holiday-commerce results could trigger a pullback. Shopify valuation downgrade

Shopify Price Performance

Shares of NASDAQ SHOP opened at $178.14 on Friday. The firm has a market cap of $229.20 billion, a PE ratio of 139.11, a PEG ratio of 3.56 and a beta of 2.62. The company has a current ratio of 5.35, a quick ratio of 5.35 and a debt-to-equity ratio of 0.01. Shopify Inc. has a 1-year low of $94.00 and a 1-year high of $182.19. The company has a fifty day moving average price of $148.86 and a 200 day moving average price of $127.95.

Shopify (NASDAQ:SHOP - Get Free Report) TSE: SHOP last released its earnings results on Wednesday, August 5th. The software maker reported $0.42 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.40 by $0.02. The firm had revenue of $3.58 billion during the quarter. Shopify had a return on equity of 12.58% and a net margin of 14.53%. Shopify's revenue for the quarter was up 33.7% on a year-over-year basis. During the same quarter last year, the company posted $0.69 EPS. Research analysts predict that Shopify Inc. 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 to start, operate and grow online and in physical retail environments. Its platform enables merchants to create and manage online stores, sell through multiple channels, process orders and payments, manage inventory and engage with customers.

Shopify's products and services include its core commerce platform, Shopify Plus for larger businesses, Shopify Payments, Shop Pay, point-of-sale solutions and tools for marketing, shipping, analytics and customer management.

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