Shopify Inc. $SHOP Holdings Increased by MUFG Securities EMEA plc

Key Points

• MUFG Securities EMEA plc increased its Shopify stake by 41.4% in the fourth quarter, buying 240,000 additional shares and bringing its total to 820,000 shares worth about $132.1 million.
• Institutional interest in Shopify remains strong overall, with several other funds also adding shares and 69.27% of the stock now owned by institutional investors.
• Recent analyst and news coverage has been broadly positive, highlighting Shopify’s potential from its point-of-sale and B2B businesses as well as upbeat sentiment across software stocks; analysts currently rate SHOP a “Moderate Buy” with an average price target of $157.17.

MUFG Securities EMEA plc grew its stake in shares of Shopify Inc. (NASDAQ:SHOP - Free Report) TSE: SHOP by 41.4% during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 820,000 shares of the software maker's stock after buying an additional 240,000 shares during the quarter. Shopify comprises 1.5% of MUFG Securities EMEA plc's holdings, making the stock its 12th biggest position. MUFG Securities EMEA plc owned about 0.06% of Shopify worth $132,061,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the stock. Welch & Forbes LLC raised its position in shares of Shopify by 1.6% during the 4th quarter. Welch & Forbes LLC now owns 152,934 shares of the software maker's stock worth $24,618,000 after buying an additional 2,386 shares in the last quarter. Norges Bank bought a new stake in shares of Shopify during the 4th quarter worth about $2,611,797,000. Hilltop Partners LLC raised its position in shares of Shopify by 13.8% during the 4th quarter. Hilltop Partners LLC now owns 1,776 shares of the software maker's stock worth $286,000 after buying an additional 215 shares in the last quarter. Acorn Wealth Advisors LLC bought a new stake in shares of Shopify during the 4th quarter worth about $204,000. Finally, Eurizon Capital SGR S.p.A. bought a new stake in shares of Shopify during the 4th quarter worth about $241,000. 69.27% of the stock is currently owned by institutional investors.

Shopify News Summary

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 Price Performance

NASDAQ SHOP opened at $118.71 on Friday. The company's 50 day simple moving average is $114.71 and its 200 day simple moving average is $134.06. Shopify Inc. has a 12 month low of $94.00 and a 12 month high of $182.19. The company has a market capitalization of $154.05 billion, a P/E ratio of 117.54, a PEG ratio of 3.33 and a beta of 2.64.

Shopify (NASDAQ:SHOP - Get Free Report) TSE: SHOP last released its earnings results on Tuesday, May 5th. The software maker reported $999.00 EPS 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 business had revenue of $3.17 billion for the quarter, compared to the consensus estimate of $3.08 billion. On average, analysts anticipate that Shopify Inc. will post 1.36 earnings per share for the current year.

Analyst Upgrades and Downgrades

A number of analysts have commented on SHOP shares. Moffett Nathanson upgraded shares of Shopify from a "neutral" rating to a "buy" rating and set a $150.00 price target on the stock in a research report on Monday, February 9th. Needham & Company LLC restated a "buy" rating and set a $180.00 price target on shares of Shopify in a research report on Tuesday, May 5th. Arete Research set a $175.00 price target on shares of Shopify in a research report on Monday, February 2nd. Mizuho upgraded shares of Shopify from a "neutral" rating to an "outperform" rating and set a $150.00 target price on the stock in a report on Thursday, February 12th. Finally, Oppenheimer reiterated an "outperform" rating and issued a $175.00 target price on shares of Shopify in a report on Wednesday, May 6th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating and ten have issued a Hold rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $157.17.

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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