Fred Alger Management LLC Grows Position in Shopify Inc. $SHOP

Key Points

• Fred Alger Management LLC more than doubled its Shopify stake in the fourth quarter, buying 297,709 more shares and bringing its total holdings to 588,028 shares worth about $94.7 million.
• Shopify’s board authorized an additional $3 billion share repurchase, increasing the total buyback program to $5 billion. That move signals management confidence and could support the stock by shrinking share count.
• Analysts and media continue to point to Shopify’s AI-focused growth potential and strong momentum, while recent earnings topped expectations and several firms maintained or adjusted their ratings and price targets on the stock.

Fred Alger Management LLC boosted its stake in Shopify Inc. (NASDAQ:SHOP - Free Report) TSE: SHOP by 102.5% in the fourth quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 588,028 shares of the software maker's stock after buying an additional 297,709 shares during the quarter. Fred Alger Management LLC's holdings in Shopify were worth $94,655,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also bought and sold shares of SHOP. Norges Bank purchased a new stake in Shopify in the 4th quarter valued at $2,611,797,000. Sands Capital Management LLC raised its position in Shopify by 37.0% in the 4th quarter. Sands Capital Management LLC now owns 9,506,036 shares of the software maker's stock valued at $1,530,187,000 after buying an additional 2,568,765 shares during the last quarter. Thrivent Financial for Lutherans increased its position in shares of Shopify by 7,207.2% during the 4th quarter. Thrivent Financial for Lutherans now owns 1,148,259 shares of the software maker's stock valued at $184,883,000 after purchasing an additional 1,132,545 shares during the last quarter. Select Equity Group L.P. increased its position in shares of Shopify by 92.5% during the 2nd quarter. Select Equity Group L.P. now owns 2,246,473 shares of the software maker's stock valued at $259,124,000 after purchasing an additional 1,079,494 shares during the last quarter. Finally, Steadfast Capital Management LP purchased a new stake in shares of Shopify during the 3rd quarter valued at $140,930,000. 69.27% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Shopify

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Shopify said its board authorized an additional $3 billion share repurchase, lifting the total buyback authorization to $5 billion. That signals confidence in the company’s cash generation and can support the stock by reducing share count. Is Shopify (SHOP) One of the Best Tech Stocks to Invest In on the Dip?
• Positive Sentiment: Analysts and media coverage continue to highlight Shopify’s AI retail infrastructure potential, with the company using AI tools, commerce data, and shopping-channel integrations to position itself for next-generation retail growth. Is Shopify Building the Future Infrastructure for AI Retail?
• Positive Sentiment: Coverage from Zacks and other outlets notes earnings growth and price strength, reinforcing the view that Shopify remains a stock to watch among momentum investors. Earnings Growth & Price Strength Make Shopify (SHOP) a Stock to Watch
• Neutral Sentiment: At Shopify’s 2026 annual meeting, shareholders elected all director nominees, reappointed PricewaterhouseCoopers as auditor, and approved executive compensation on an advisory basis. The company also said a shareholder proposal for an AI policy was not approved, which removes some governance uncertainty but is unlikely to be a major stock catalyst. Shopify Announces Results of its 2026 Annual Meeting of Shareholders
• Neutral Sentiment: One market commentary put a hold rating on Shopify and suggested limited downside from current levels, reflecting that the stock is still viewed as fairly valued by some observers rather than deeply mispriced. Wall Street Has 38 Buy Ratings on Shopify and One Sell. But We Disagree.
• Negative Sentiment: A shareholder proposal on an AI policy was rejected at the annual meeting, and some coverage has framed this as an ongoing governance issue, though it appears to be a secondary factor versus the buyback and growth narrative. Shopify board fighting shareholder push to create AI policy

Shopify Stock Up 0.7%

Shares of NASDAQ SHOP opened at $113.23 on Wednesday. Shopify Inc. has a 52 week low of $94.00 and a 52 week high of $182.19. The business has a 50-day simple moving average of $113.77 and a two-hundred day simple moving average of $130.80. The company has a market cap of $146.93 billion, a P/E ratio of 112.11, a P/E/G ratio of 3.15 and a beta of 2.60.

Shopify (NASDAQ:SHOP - Get Free Report) TSE: SHOP last issued its earnings results on Tuesday, May 5th. The software maker reported $999.00 EPS for the quarter, topping the consensus estimate of $0.22 by $998.78. Shopify had a return on equity of 12.07% and a net margin of 10.77%.The business had revenue of $3.17 billion during the quarter, compared to the consensus estimate of $3.08 billion. Equities research analysts anticipate that Shopify Inc. will post 1.36 EPS for the current year.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on SHOP shares. Weiss Ratings lowered Shopify from a "hold (c)" rating to a "hold (c-)" rating in a research report on Wednesday, May 6th. Citizens Jmp cut their price target on Shopify from $160.00 to $150.00 and set a "market outperform" rating for the company in a research note on Wednesday, May 6th. Jefferies Financial Group reiterated a "hold" rating and set a $140.00 price target (down from $150.00) on shares of Shopify in a research note on Tuesday, May 5th. Barclays set a $126.00 price target on Shopify and gave the stock an "equal weight" rating in a research note on Wednesday, May 6th. Finally, Piper Sandler reiterated an "overweight" rating and set a $150.00 price target (down from $165.00) on shares of Shopify in a research note on Tuesday, May 5th. Two research analysts have rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating and ten have assigned a Hold rating to the stock. According to data from MarketBeat.com, Shopify has a consensus rating of "Moderate Buy" and a consensus price target of $157.17.

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.

Want to see what other hedge funds are holding SHOP? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Shopify Inc. (NASDAQ:SHOP - Free Report) TSE: SHOP.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.