Mufg Securities Canada LTD. Reduces Holdings in Shopify Inc. $SHOP

Key Points

• Mufg Securities Canada reduced its Shopify stake by 5.1% in the second quarter, selling 93,039 shares and retaining 1.73 million shares valued at approximately $197.1 million.
• Institutional ownership remains significant at 69.27%, with several major investors—including Norges Bank, Sands Capital, Invesco, and Select Equity Group—recently increasing their positions.
• Shopify reported quarterly revenue of $3.58 billion, up 33.7% year over year, and earnings of $0.42 per share, beating estimates. Analysts maintain a “Moderate Buy” consensus with an average price target of $170.84.

Mufg Securities Canada LTD. lowered its stake in Shopify Inc. (NASDAQ:SHOP - Free Report) TSE: SHOP by 5.1% during the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 1,725,549 shares of the software maker's stock after selling 93,039 shares during the period. Shopify accounts for about 5.2% of Mufg Securities Canada LTD.'s holdings, making the stock its 5th largest holding. Mufg Securities Canada LTD. owned 0.13% of Shopify worth $197,102,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the stock. Norges Bank bought a new position in Shopify in the fourth quarter valued at about $2,611,797,000. Sands Capital Management LLC boosted its position in shares of Shopify by 37.0% in the fourth quarter. Sands Capital Management LLC now owns 9,506,036 shares of the software maker's stock worth $1,530,187,000 after purchasing an additional 2,568,765 shares during the period. Invesco Ltd. boosted its holdings in Shopify by 9.8% in the 4th quarter. Invesco Ltd. now owns 14,026,193 shares of the software maker's stock worth $2,257,796,000 after buying an additional 1,252,074 shares during the period. Thrivent Financial for Lutherans grew its position in shares of Shopify by 7,207.2% during the fourth quarter. Thrivent Financial for Lutherans now owns 1,148,259 shares of the software maker's stock worth $184,883,000 after purchasing an additional 1,132,545 shares in the last quarter. Finally, Select Equity Group L.P. grew its holdings in 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 buying an additional 1,079,494 shares in the last quarter. Institutional investors own 69.27% of the company's stock.

Shopify Trading Down 3.6%

Shares of SHOP opened at $147.37 on Tuesday. The company's fifty day simple moving average is $131.76 and its 200-day simple moving average is $121.93. The company has a market cap of $189.61 billion, a P/E ratio of 99.57, a P/E/G ratio of 3.12 and a beta of 2.58. 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 twelve month low of $94.00 and a twelve month high of $182.19.

Shopify (NASDAQ:SHOP - Get Free Report) TSE: SHOP last issued its quarterly earnings results on Wednesday, August 5th. The software maker reported $0.42 EPS for the quarter, beating the consensus estimate of $0.40 by $0.02. Shopify had a net margin of 14.53% and a return on equity of 12.58%. The company had revenue of $3.58 billion for the quarter. During the same quarter in the previous year, the company posted $0.69 earnings per share. The business's revenue for the quarter was up 33.7% on a year-over-year basis. As a group, analysts expect that Shopify Inc. will post 1.45 EPS for the current year.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on SHOP. Canaccord Genuity Group set a $180.00 price objective on Shopify and gave the company a "buy" rating in a research report on Wednesday, August 5th. National Bank Financial restated an "outperform" rating and set a $180.00 target price (up from $155.00) on shares of Shopify in a research report on Wednesday, August 5th. BTIG Research started coverage on shares of Shopify in a report on Friday, July 10th. They issued a "buy" rating for the company. Citizens Jmp lifted their price target on Shopify from $150.00 to $185.00 and gave the stock a "market outperform" rating in a research report on Thursday, August 6th. Finally, Weiss Ratings raised Shopify from a "hold (c-)" rating to a "hold (c)" rating in a research note on Monday, August 17th. One investment analyst has rated the stock with a Strong Buy rating, thirty-five have given a Buy rating and ten have given a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $170.84.

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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