Norges Bank Takes Position in Shopify Inc. $SHOP

Key Points

• Norges Bank initiated a new position in Shopify during the fourth quarter, buying 16.2 million shares worth about $2.61 billion, giving it roughly 1.25% ownership of the company.
• Other large institutional investors also increased their stakes, and institutions now hold about 69.27% of Shopify’s stock, highlighting continued strong interest from big funds.
• Analysts remain generally upbeat: Shopify has a consensus rating of “Moderate Buy” with an average target price of $157.17, even though some firms recently trimmed their price targets.

Norges Bank bought a new stake in Shopify Inc. (NASDAQ:SHOP - Free Report) TSE: SHOP during the 4th quarter, according to the company in its most recent 13F filing with the SEC. The fund bought 16,224,694 shares of the software maker's stock, valued at approximately $2,611,797,000. Norges Bank owned approximately 1.25% of Shopify as of its most recent filing with the SEC.

Several other institutional investors and hedge funds also recently made changes to their positions in the company. Vanguard Group Inc. boosted its stake in shares of Shopify by 1.5% in the 4th quarter. Vanguard Group Inc. now owns 50,670,627 shares of the software maker's stock valued at $8,158,643,000 after purchasing an additional 743,803 shares in the last quarter. Geode Capital Management LLC boosted its stake in shares of Shopify by 6.2% in the 4th quarter. Geode Capital Management LLC now owns 12,601,476 shares of the software maker's stock valued at $2,043,365,000 after purchasing an additional 737,892 shares in the last quarter. TD Asset Management Inc boosted its stake in shares of Shopify by 1.4% in the 3rd quarter. TD Asset Management Inc now owns 8,528,510 shares of the software maker's stock valued at $1,267,327,000 after purchasing an additional 118,836 shares in the last quarter. Connor Clark & Lunn Investment Management Ltd. boosted its stake in shares of Shopify by 3.3% in the 3rd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 6,588,934 shares of the software maker's stock valued at $978,679,000 after purchasing an additional 213,315 shares in the last quarter. Finally, Legal & General Group Plc boosted its stake in shares of Shopify by 2.6% in the 4th quarter. Legal & General Group Plc now owns 6,349,261 shares of the software maker's stock valued at $1,023,638,000 after purchasing an additional 160,376 shares in the last quarter. Institutional investors and hedge funds own 69.27% of the company's stock.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on the stock. KeyCorp restated an "overweight" rating and issued a $160.00 target price on shares of Shopify in a research note on Wednesday, February 11th. Canaccord Genuity Group reduced their target price on shares of Shopify from $165.00 to $145.00 and set a "buy" rating on the stock in a research note on Wednesday, May 6th. UBS Group restated a "neutral" rating on shares of Shopify in a research note on Thursday. Evercore set a $135.00 target price on shares of Shopify in a research note on Wednesday, February 11th. Finally, Benchmark cut their price target on Shopify from $195.00 to $145.00 and set a "buy" rating for the company in a report on Tuesday, February 10th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-one 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 a consensus rating of "Moderate Buy" and an average target price of $157.17.

Shopify Trading Up 3.2%

Shares of NASDAQ SHOP opened at $118.71 on Friday. Shopify Inc. has a 1-year low of $94.00 and a 1-year high of $182.19. The company has a market cap of $154.04 billion, a PE ratio of 117.54, a P/E/G ratio of 3.22 and a beta of 2.64. The company has a 50-day moving average of $114.71 and a two-hundred day moving average of $134.06.

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

Key Headlines Impacting Shopify

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: UBS said Shopify’s point-of-sale business could become a much bigger long-term growth driver than the market currently assumes, adding to gross merchandise value and profit growth over the next decade. The note reinforces the idea that Shopify’s in-store commerce and retail tools can expand beyond its core e-commerce platform.
• Positive Sentiment: Shopify also benefited from a broader rebound in software names after strong results from companies like Snowflake and Okta eased fears that AI would disrupt subscription software models. That improving sentiment has helped lift investor appetite for software stocks, including SHOP.
• Positive Sentiment: Recent coverage also highlighted Shopify’s strong B2B momentum, with Q1 B2B gross merchandise value reportedly up 80% year over year, suggesting another avenue for enterprise growth and supporting the bullish case for the stock.
• Neutral Sentiment: Reddit’s expanded Shopify integration, now generally available for merchants, could indirectly support Shopify’s ecosystem by making it easier for merchants to advertise and sell through Reddit. While this is more directly a positive for Reddit, it underscores Shopify’s role as a commerce platform connected to more marketing channels.
• Neutral Sentiment: Other recent articles pointed to AI-related merchant tools and app integrations, such as EZ Texting, which may improve Shopify’s value proposition over time but are not immediate stock-moving catalysts on their own.

Shopify Company Profile

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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