Sei Investments Co. Boosts Holdings in Shopify Inc. $SHOP

Key Points

• Sei Investments Co. increased its Shopify stake by 7.5% in the first quarter, holding 2.7 million shares worth about $320.8 million after adding 189,583 shares. Institutional investors overall still own a large majority of the stock.
• Shopify got a few positive business developments, including OneMagnify reaching Shopify Premier Partner status and DoorDash launching a native integration for U.S. brick-and-mortar Shopify merchants. These moves could help broaden merchant reach and support platform adoption.
• Sentiment was mixed as Rothschild & Co Redburn downgraded Shopify from buy to hold, even though the new $130 target still suggests upside. Shares were also noted as sinking while the broader market gained, reflecting valuation concerns after a strong run.

Sei Investments Co. grew its stake in shares of Shopify Inc. (NASDAQ:SHOP - Free Report) TSE: SHOP by 7.5% during the first quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 2,704,618 shares of the software maker's stock after purchasing an additional 189,583 shares during the period. Sei Investments Co. owned approximately 0.21% of Shopify worth $320,822,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also bought and sold shares of the company. Brighton Jones LLC lifted its stake in shares of Shopify by 2.8% in the 4th quarter. Brighton Jones LLC now owns 21,176 shares of the software maker's stock valued at $2,252,000 after purchasing an additional 584 shares during the period. AQR Capital Management LLC raised its holdings in Shopify by 107.3% in the first quarter. AQR Capital Management LLC now owns 14,576 shares of the software maker's stock worth $1,392,000 after purchasing an additional 7,544 shares in the last quarter. Sivia Capital Partners LLC raised its holdings in Shopify by 6.6% in the second quarter. Sivia Capital Partners LLC now owns 8,190 shares of the software maker's stock worth $945,000 after purchasing an additional 506 shares in the last quarter. Osterweis Capital Management Inc. purchased a new position in Shopify during the second quarter valued at $53,000. Finally, Main Street Financial Solutions LLC lifted its position in Shopify by 15.3% during the second quarter. Main Street Financial Solutions LLC now owns 11,131 shares of the software maker's stock valued at $1,284,000 after buying an additional 1,479 shares during the period. 69.27% of the stock is currently owned by hedge funds and other institutional investors.

Shopify News Roundup

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Shopify’s ecosystem gained a credibility boost after OneMagnify said it reached Shopify Premier Partner status, a top-tier designation that highlights strong technical capability and enterprise commerce expertise. OneMagnify Achieves Shopify Premier Partner Status, Powering Measurable Growth for Global Commerce Brands
• Positive Sentiment: DoorDash announced a native integration for U.S. brick-and-mortar Shopify merchants, allowing them to sell through DoorDash with synced inventory and easier onboarding, which could expand Shopify merchants’ reach and support platform adoption. Shopify (SHOP) Gains A New DoorDash Link As Its Valuation Narrative Faces A Test
• Neutral Sentiment: Shopify was highlighted in several analyst and media pieces as a closely watched software name, with Morgan Stanley saying sentiment across software stocks has become too negative. That may support the broader valuation narrative, but it is not a direct catalyst on its own. Morgan Stanley Analysts Say Sentiment Has Gotten ‘Too Negative' on Software Stocks. These Are Their Picks
• Negative Sentiment: Rothschild & Co Redburn downgraded Shopify from buy to hold, which likely weighed on sentiment even though the new $130 price target still implies some upside from recent levels. Zacks.com downgrade coverage
• Negative Sentiment: Recent trading commentary also noted Shopify has been sinking while the broader market gained, reinforcing that investors are taking profits or reassessing the near-term valuation after a strong run. Shopify (SHOP) Stock Sinks As Market Gains: What You Should Know

Shopify Stock Performance

Shares of NASDAQ SHOP opened at $118.42 on Thursday. The firm's 50 day moving average price is $113.83 and its 200-day moving average price is $122.51. The company has a market cap of $153.67 billion, a PE ratio of 117.25, a P/E/G ratio of 2.67 and a beta of 2.58. Shopify Inc. has a 52-week low of $94.00 and a 52-week high of $182.19.

Analyst Ratings Changes

A number of analysts have recently weighed in on SHOP shares. Jefferies Financial Group raised shares of Shopify from a "hold" rating to a "buy" rating and upped their target price for the stock from $140.00 to $160.00 in a research report on Sunday, July 12th. Wells Fargo & Company dropped their price objective on shares of Shopify from $166.00 to $144.00 and set an "overweight" rating on the stock in a research note on Wednesday, May 6th. BTIG Research assumed coverage on shares of Shopify in a report on Friday, July 10th. They issued a "buy" rating on the stock. Oppenheimer reaffirmed an "outperform" rating and set a $175.00 target price on shares of Shopify in a research note on Wednesday, May 6th. Finally, Piper Sandler reiterated an "overweight" rating and set a $150.00 target price (down from $165.00) on shares of Shopify in a report on Tuesday, May 5th. Three analysts have rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating and ten have assigned a Hold rating to the stock. According to data from MarketBeat.com, Shopify presently has an average rating of "Moderate Buy" and an average target price of $157.86.

Shopify 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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