IFP Advisors Inc Buys 7,463 Shares of Shopify Inc. $SHOP

Key Points

• IFP Advisors increased its Shopify stake by 84.9% in the third quarter, acquiring 7,463 additional shares for a total of 16,252 shares valued at approximately $2.41 million. Institutional investors and hedge funds collectively own 69.27% of Shopify.
• Shopify reported quarterly revenue of $3.58 billion, up 33.7% year over year, and earnings of $0.42 per share, exceeding analyst expectations. Zacks upgraded the stock to Strong Buy, while analysts maintain an overall Moderate Buy rating with an average price target of $175.89.
• Shares opened at $173.48 after a strong rally, near the 52-week high of $182.19. Despite positive AI and enterprise growth prospects, Shopify’s premium valuation—including a price-to-earnings ratio above 117—has raised concerns about the stock’s risk-reward balance.

IFP Advisors Inc lifted its stake in shares of Shopify Inc. (NASDAQ:SHOP - Free Report) TSE: SHOP by 84.9% during the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 16,252 shares of the software maker's stock after acquiring an additional 7,463 shares during the period. IFP Advisors Inc's holdings in Shopify were worth $2,410,000 as of its most recent SEC filing.

Other hedge funds have also modified their holdings of the company. Norris Financial Group LLC purchased a new position in Shopify during the first quarter worth approximately $1,586,000. Infusive Asset Management Inc. boosted its holdings in shares of Shopify by 27.4% in the 1st quarter. Infusive Asset Management Inc. now owns 43,611 shares of the software maker's stock valued at $5,173,000 after purchasing an additional 9,374 shares during the last quarter. OMERS ADMINISTRATION Corp boosted its holdings in shares of Shopify by 18.6% in the 1st quarter. OMERS ADMINISTRATION Corp now owns 58,044 shares of the software maker's stock valued at $6,876,000 after purchasing an additional 9,096 shares during the last quarter. Ninepoint Partners LP acquired a new position in shares of Shopify in the 2nd quarter valued at $29,027,000. Finally, The Manufacturers Life Insurance Company grew its stake in shares of Shopify by 8.5% during the 1st quarter. The Manufacturers Life Insurance Company now owns 8,418,903 shares of the software maker's stock valued at $998,137,000 after buying an additional 660,198 shares during the period. 69.27% of the stock is owned by institutional investors and hedge funds.

Shopify News Roundup

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Shopify received a Zacks Rank #1 (Strong Buy), reflecting rising earnings estimates and improving expectations for the company’s financial performance. Revenue is projected to grow approximately 31.5% this year. Zacks rating upgrade article
• Positive Sentiment: Analysts highlighted strong revenue prospects, expanding enterprise relationships with brands such as Dior and Clinique, and increasing adoption of Shopify’s AI tools. The company’s Platinum membership in the PyTorch Foundation further supports its positioning in AI-enabled commerce. Analyst upgrades article
• Positive Sentiment: Shopify is now supported by Vercel Shop’s open-source Next.js integration, enabling merchants to build customized AI storefronts with AI shopping-agent capabilities for product discovery and checkout. This could expand Shopify’s appeal to developers and larger merchants. Vercel Shop integration article
• Positive Sentiment: A new Shopify POS Smart Grid feature can recommend and optimize tiles using sales data and usage frequency, potentially improving merchant efficiency and product engagement. Shopify POS feature article
• Neutral Sentiment: Despite strong execution, AI momentum, and recent outperformance, commentary cautioned that Shopify’s roughly 35% monthly rally and premium valuation make the stock’s risk-reward balance more difficult, with investors weighing further gains against taking profits. Shopify rally valuation article

Shopify Trading Up 1.4%

NASDAQ SHOP opened at $173.48 on Wednesday. Shopify Inc. has a one year low of $94.00 and a one year high of $182.19. The company's 50 day moving average price is $149.95 and its 200 day moving average price is $129.12. The company has a debt-to-equity ratio of 0.01, a quick ratio of 5.35 and a current ratio of 5.35. The firm has a market capitalization of $223.21 billion, a price-to-earnings ratio of 117.22, a PEG ratio of 3.53 and a beta of 2.62.

Shopify (NASDAQ:SHOP - Get Free Report) TSE: SHOP last announced its quarterly earnings results on Wednesday, August 5th. The software maker reported $0.42 earnings per share for the quarter, beating analysts' consensus estimates of $0.40 by $0.02. Shopify had a net margin of 14.53% and a return on equity of 12.58%. The firm had revenue of $3.58 billion for the quarter. During the same period last year, the firm earned $0.69 earnings per share. The company's quarterly revenue was up 33.7% on a year-over-year basis. On average, sell-side analysts predict that Shopify Inc. will post 1.46 EPS for the current year.

Analyst Upgrades and Downgrades

Several analysts have recently issued reports on SHOP shares. Barclays set a $145.00 price objective on shares of Shopify and gave the company an "equal weight" rating in a research note on Thursday, August 6th. Weiss Ratings raised Shopify from a "hold (c)" rating to a "hold (c+)" rating in a research report on Thursday, October 15th. Morgan Stanley lowered Shopify from an "overweight" rating to a "buy" rating in a research report on Monday, July 13th. Zacks Research upgraded Shopify from a "hold" rating to a "strong-buy" rating in a report on Friday, October 16th. Finally, Evercore reiterated an "outperform" rating and issued a $175.00 target price (up from $135.00) on shares of Shopify in a report on Wednesday, August 5th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-six have given a Buy rating and nine have assigned a Hold rating to the company's stock. According to data from MarketBeat, Shopify currently has an average rating of "Moderate Buy" and an average price target of $175.89.

Shopify Company Profile

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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