Royal Fund Management LLC Sells 28,550 Shares of Shopify Inc. $SHOP

Key Points

• Royal Fund Management cut its Shopify stake by 74.7% in the third quarter, selling 28,550 shares and retaining 9,676 shares valued at approximately $1.44 million. Institutional investors 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. The stock traded near $168.68, close to its 12-month high of $182.19.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $177.28, though valuation and downgrade risks have increased after the stock’s sharp rally.

Royal Fund Management LLC lessened its holdings in Shopify Inc. (NASDAQ:SHOP - Free Report) TSE: SHOP by 74.7% during the third quarter, according to its most recent disclosure with the SEC. The institutional investor owned 9,676 shares of the software maker's stock after selling 28,550 shares during the period. Royal Fund Management LLC's holdings in Shopify were worth $1,435,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently modified their holdings of the company. Fortitude Family Office LLC bought a new stake in Shopify during the third quarter worth about $29,000. Graney & King LLC purchased a new position in Shopify in the 1st quarter worth $27,000. Evolution Wealth Management Inc. boosted its position in Shopify by 203.9% during the first quarter. Evolution Wealth Management Inc. now owns 231 shares of the software maker's stock valued at $27,000 after buying an additional 155 shares during the period. Trellis Wealth Advisors LLC purchased a new position in shares of Shopify in the third quarter worth about $37,000. Finally, Roxbury Financial LLC lifted its stake in shares of Shopify by 171.0% in the 3rd quarter. Roxbury Financial LLC now owns 271 shares of the software maker's stock valued at $40,000 after acquiring an additional 171 shares during the last quarter. Hedge funds and other institutional investors own 69.27% of the company's stock.

Shopify Stock Performance

Shopify stock traded down $0.13 during midday trading on Friday, reaching $168.68. 4,101,232 shares of the company traded hands, compared to its average volume of 8,230,026. The firm has a market capitalization of $217.03 billion, a price-to-earnings ratio of 113.97, a price-to-earnings-growth ratio of 3.49 and a beta of 2.62. The business has a 50 day moving average of $150.92 and a two-hundred day moving average of $130.14. Shopify Inc. has a 12 month low of $94.00 and a 12 month high of $182.19. The company has a debt-to-equity ratio of 0.01, a current ratio of 5.35 and a quick ratio of 5.35.

Shopify (NASDAQ:SHOP - Get Free Report) TSE: SHOP last issued its quarterly earnings data on Wednesday, August 5th. The software maker reported $0.42 EPS for the quarter, topping the consensus estimate of $0.40 by $0.02. The company had revenue of $3.58 billion during the quarter. Shopify had a return on equity of 12.58% and a net margin of 14.53%. The business's revenue was up 33.7% on a year-over-year basis. During the same period in the previous year, the firm earned $0.69 EPS. As a group, research analysts predict that Shopify Inc. will post 1.46 earnings per share for the current year.

Shopify News Roundup

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: RBC raises target and reiterates bullish view: RBC Dominion Securities initiated an “outperform” rating with a $200 price target, implying approximately 18.2% upside from the referenced $169.23 price. RBC Dominion Securities raises Shopify price target
• Positive Sentiment: AI-driven commerce opportunity: Polen Capital’s Q3 2026 investor commentary identified Shopify as a potential beneficiary of “agentic commerce,” in which AI tools help consumers discover and purchase products. This supports the view that Shopify could benefit from, rather than be disrupted by, AI adoption. Shopify could benefit from AI-driven agentic commerce
• Positive Sentiment: Growth and momentum remain investor supports: Coverage highlights Shopify’s earnings growth, payments expansion, strong gross merchandise volume and 56% three-month share-price rally. Shopify’s ecosystem also continues to expand through certified technology partners such as poq and new checkout-related commerce tools. Shopify earnings growth and price strength
• Neutral Sentiment: New merchant monetization initiatives: Disco launched an advertiser-funded cashback format within Shopify checkout, reporting roughly 5% higher order conversion in pilot data. The development could improve merchant engagement and checkout monetization, although the direct financial benefit to Shopify is not yet clear. Disco launches Pre-Purchase for Shopify checkout
• Negative Sentiment: Valuation and downgrade risks: ATB Cormark downgraded Shopify to “sector perform” from “outperform” after the sharp rally, citing the stock’s substantial appreciation. Commentary also warns that Shopify’s premium valuation leaves less room for disappointment, despite strong operating growth. ATB Cormark downgrades Shopify after rally

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on the stock. Wedbush reissued an "outperform" rating and set a $176.00 price target on shares of Shopify in a research report on Wednesday, September 23rd. Seaport Research Partners reissued a "buy" rating and set a $180.00 target price on shares of Shopify in a research note on Thursday, October 8th. Benchmark raised their target price on shares of Shopify from $145.00 to $170.00 and gave the stock a "buy" rating in a research report on Thursday, August 6th. Rosenblatt Securities initiated coverage on Shopify in a research report on Thursday, August 20th. They set a "buy" rating and a $175.00 price objective on the stock. Finally, Jefferies Financial Group reiterated a "buy" rating on shares of Shopify in a report on Wednesday, October 14th. Three analysts have rated the stock with a Strong Buy rating, thirty-seven have given a Buy rating and nine have given a Hold rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $177.28.

About Shopify

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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