Equitable Trust Co. Increases Stake in Shopify Inc. $SHOP

Key Points

• Equitable Trust Co. increased its stake in Shopify by 32.2% in the second quarter, now owning 325,949 shares worth approximately $37.6 million, making it the fund's 9th largest position.
• Shopify's latest quarterly earnings exceeded analysts' expectations, with $0.35 EPS reported compared to the consensus estimate of $0.29, and revenue of $2.68 billion, which is a 31.1% increase year-over-year.
• Over 69% of Shopify’s stock is owned by institutional investors, with notable increases in stakes from firms like Jennison Associates and Canada Pension Plan Investment Board during the first quarter.

Equitable Trust Co. lifted its holdings in shares of Shopify Inc. (NASDAQ:SHOP - Free Report) TSE: SHOP by 32.2% during the 2nd quarter, according to its most recent disclosure with the SEC. The fund owned 325,949 shares of the software maker's stock after purchasing an additional 79,327 shares during the period. Shopify accounts for about 1.9% of Equitable Trust Co.'s portfolio, making the stock its 9th largest position. Equitable Trust Co.'s holdings in Shopify were worth $37,598,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also added to or reduced their stakes in the company. Nuveen LLC acquired a new position in Shopify in the first quarter valued at approximately $667,392,000. Jennison Associates LLC raised its position in shares of Shopify by 324.3% during the 1st quarter. Jennison Associates LLC now owns 5,280,781 shares of the software maker's stock valued at $504,209,000 after acquiring an additional 4,036,326 shares during the last quarter. Canada Pension Plan Investment Board raised its position in shares of Shopify by 34.4% during the 1st quarter. Canada Pension Plan Investment Board now owns 5,943,409 shares of the software maker's stock valued at $565,504,000 after acquiring an additional 1,522,573 shares during the last quarter. Mackenzie Financial Corp grew its stake in shares of Shopify by 19.7% during the first quarter. Mackenzie Financial Corp now owns 8,648,734 shares of the software maker's stock worth $822,745,000 after purchasing an additional 1,426,406 shares during the period. Finally, Alliancebernstein L.P. grew its stake in shares of Shopify by 24.6% during the first quarter. Alliancebernstein L.P. now owns 5,554,420 shares of the software maker's stock worth $530,336,000 after purchasing an additional 1,094,840 shares during the period. Institutional investors and hedge funds own 69.27% of the company's stock.

Shopify Price Performance

SHOP opened at $153.66 on Tuesday. The company has a market capitalization of $199.71 billion, a price-to-earnings ratio of 85.84, a P/E/G ratio of 7.07 and a beta of 2.72. Shopify Inc. has a 1 year low of $69.84 and a 1 year high of $169.69. The business's 50-day moving average price is $147.18 and its two-hundred day moving average price is $119.67.

Shopify (NASDAQ:SHOP - Get Free Report) TSE: SHOP last posted its quarterly earnings data on Wednesday, August 6th. The software maker reported $0.35 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.29 by $0.06. Shopify had a return on equity of 12.30% and a net margin of 23.42%.The business had revenue of $2.68 billion during the quarter, compared to the consensus estimate of $2.55 billion. During the same period last year, the company earned $0.26 earnings per share. Shopify's quarterly revenue was up 31.1% on a year-over-year basis. Sell-side analysts anticipate that Shopify Inc. will post 1.12 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on SHOP. Truist Financial lifted their price objective on Shopify from $95.00 to $150.00 and gave the stock a "hold" rating in a research note on Thursday, August 7th. Canaccord Genuity Group increased their price target on shares of Shopify from $115.00 to $165.00 and gave the company a "buy" rating in a research report on Thursday, August 7th. Zacks Research upgraded shares of Shopify to a "hold" rating in a research report on Tuesday, August 12th. Arete reaffirmed a "neutral" rating on shares of Shopify in a research note on Wednesday, July 23rd. Finally, DA Davidson upped their target price on shares of Shopify from $125.00 to $185.00 and gave the company a "buy" rating in a research note on Thursday, August 7th. Twenty-two analysts have rated the stock with a Buy rating, twenty-three have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, Shopify currently has an average rating of "Hold" and an average price target of $151.95.

About Shopify

Shopify Inc, a commerce company, provides a commerce platform and services in Canada, the United States, Europe, the Middle East, Africa, the Asia Pacific, Australia, China, and Latin America. The company's platform enables merchants to displays, manages, markets, and sells its products through various sales channels, including web and mobile storefronts, physical retail locations, pop-up shops, social media storefronts, native mobile apps, buy buttons, and marketplaces; and enables to manage products and inventory, process orders and payments, fulfill and ship orders, new buyers and build customer relationships, source products, leverage analytics and reporting, manage cash, payments and transactions, and access financing.

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