Shopify Inc. $SHOP Shares Purchased by Kestra Private Wealth Services LLC

Key Points

• Kestra Private Wealth Services increased its Shopify stake by 19% in the third quarter, adding 8,508 shares to reach 53,227 shares valued at about $7.9 million. Institutional investors and hedge funds collectively own 69.27% of the stock.
• Shopify reported Q3 revenue of $3.74 billion, up 31.6% year over year, and EPS of $0.49, beating consensus. However, GMV and subscription revenue fell short of expectations, contributing to a sell-off and raising the stakes for holiday-quarter results.
• Analysts’ consensus rating is Moderate Buy, with an average price target of $178.79, but valuation is a concern: the stock’s P/E is about 93, and some analysts warn it could be vulnerable if growth or margins disappoint.

Kestra Private Wealth Services LLC boosted its holdings in Shopify Inc. (NASDAQ:SHOP - Free Report) TSE: SHOP by 19.0% during the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 53,227 shares of the software maker's stock after acquiring an additional 8,508 shares during the quarter. Kestra Private Wealth Services LLC's holdings in Shopify were worth $7,894,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds also recently bought and sold shares of the business. Ascent Group LLC raised its holdings in shares of Shopify by 4.7% in the 3rd quarter. Ascent Group LLC now owns 6,181 shares of the software maker's stock worth $917,000 after purchasing an additional 275 shares in the last quarter. Compass Financial Management LLC acquired a new stake in Shopify during the third quarter valued at approximately $119,000. Rakuten Investment Management Inc. boosted its holdings in Shopify by 11.1% during the third quarter. Rakuten Investment Management Inc. now owns 104,841 shares of the software maker's stock worth $15,544,000 after buying an additional 10,478 shares in the last quarter. Provenance Wealth Advisors LLC boosted its holdings in Shopify by 391.9% during the third quarter. Provenance Wealth Advisors LLC now owns 5,308 shares of the software maker's stock worth $787,000 after buying an additional 4,229 shares in the last quarter. Finally, Lyell Wealth Management LP boosted its holdings in Shopify by 1.0% during the third quarter. Lyell Wealth Management LP now owns 169,067 shares of the software maker's stock worth $25,073,000 after buying an additional 1,646 shares in the last quarter. 69.27% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Shopify

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Shopify reported Q3 revenue of $3.74 billion, up 31.6% year over year, and earnings per share of $0.49, above consensus. Free cash flow rose 61% to $816 million, while operating income increased 66%. Read More.
• Positive Sentiment: Analyst actions were broadly supportive: National Bank Financial raised its target to $185 and reaffirmed “outperform,” while RBC maintained “outperform” with a $200 target. UBS raised its target to $160 but kept a neutral rating. Read More. · Read More. · Read More.
• Positive Sentiment: ARK Invest reportedly bought $12.5 million of Shopify shares during the post-earnings weakness, providing a vote of confidence from a prominent growth investor. Read More.
• Neutral Sentiment: Shopify highlighted growing AI-driven shopping activity, expanding payments penetration and rising Shop Pay usage. These initiatives could support future growth, though their financial contribution remains to be proven. Read More.
• Negative Sentiment: The quarter fell short of expectations on gross merchandise volume (about $119.1 billion) and subscription revenue; some reports also cited a modest revenue miss. The shortfalls triggered the recent sell-off and keep expectations for holiday-quarter execution high. Read More.
• Negative Sentiment: Valuation remains a risk: Shopify trades at a rich earnings multiple, leaving the stock vulnerable if growth or margins disappoint. Cantor Fitzgerald cut its target to $150 and retained a neutral rating. Read More.

Shopify Stock Performance

Shares of SHOP opened at $153.03 on Thursday. The company has a 50-day moving average of $152.75 and a two-hundred day moving average of $130.11. The stock has a market cap of $196.90 billion, a price-to-earnings ratio of 93.31, a PEG ratio of 2.94 and a beta of 2.65. 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 Inc. has a one year low of $94.00 and a one year high of $180.88.

Shopify (NASDAQ:SHOP - Get Free Report) TSE: SHOP last released its quarterly earnings results on Tuesday, November 3rd. The software maker reported $0.49 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.33 by $0.16. The business had revenue of $3.74 billion for the quarter. Shopify had a net margin of 15.01% and a return on equity of 13.99%. The firm's revenue was up 31.6% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.34 EPS. On average, equities research analysts expect that Shopify Inc. will post 1.46 earnings per share for the current year.

Analysts Set New Price Targets

SHOP has been the topic of several recent research reports. Rosenblatt Securities decreased their price target on shares of Shopify from $186.00 to $180.00 and set a "buy" rating on the stock in a research report on Wednesday. Needham & Company LLC reiterated a "buy" rating on shares of Shopify in a research report on Wednesday. BTIG Research began coverage on Shopify in a research note on Friday, July 10th. They set a "buy" rating for the company. Wedbush restated an "outperform" rating and issued a $176.00 target price on shares of Shopify in a report on Wednesday. Finally, Weiss Ratings lowered Shopify from a "hold (c+)" rating to a "hold (c)" rating in a research report on Friday, October 30th. One analyst has rated the stock with a Strong Buy rating, thirty-seven have assigned a Buy rating and ten have assigned a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $178.79.

Shopify Profile

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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