Shopify Inc. $SHOP Stock: Allen Investment Management LLC Boosts Stake

Key Points

• Allen Investment Management increased its Shopify stake by 2% in the third quarter, adding 10,152 shares to reach 529,642 shares valued at about $78.6 million.
• Shopify reported quarterly revenue of $3.74 billion, up 31.6% year over year, and earnings of $0.49 per share, beating the $0.33 analyst consensus.
• Analyst sentiment is broadly positive, with a “Moderate Buy” consensus and an average price target of $178.82, though reports flagged a slight results miss and concerns about the stock’s premium valuation.

Allen Investment Management LLC grew its position in shares of Shopify Inc. (NASDAQ:SHOP - Free Report) TSE: SHOP by 2.0% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 529,642 shares of the software maker's stock after purchasing an additional 10,152 shares during the quarter. Allen Investment Management LLC's holdings in Shopify were worth $78,551,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently made changes to their positions in the company. Norris Financial Group LLC purchased a new stake in shares of Shopify in the 1st quarter worth about $1,586,000. Infusive Asset Management Inc. boosted its stake in shares of Shopify by 27.4% during the 1st quarter. Infusive Asset Management Inc. now owns 43,611 shares of the software maker's stock valued at $5,173,000 after purchasing an additional 9,374 shares in the last quarter. OMERS ADMINISTRATION Corp increased its position in shares of Shopify by 18.6% during the first quarter. OMERS ADMINISTRATION Corp now owns 58,044 shares of the software maker's stock valued at $6,876,000 after buying an additional 9,096 shares during the period. Ninepoint Partners LP purchased a new position in shares of Shopify during the second quarter valued at about $29,027,000. Finally, The Manufacturers Life Insurance Company increased its position in shares of Shopify by 8.5% during the first quarter. The Manufacturers Life Insurance Company now owns 8,418,903 shares of the software maker's stock valued at $998,137,000 after buying an additional 660,198 shares during the period. 69.27% of the stock is currently owned by institutional investors.

Key Stories Impacting Shopify

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Shopify reported 32% year-over-year revenue growth to about $3.7 billion, GMV growth of 30% to $119 billion, and a 22% free-cash-flow margin. Coverage also highlighted a forecast for another quarter of 30%-plus growth as the holiday shopping season approaches. Article Article
• Positive Sentiment: Several analysts remain constructive: Morgan Stanley reiterated a buy call after the pullback, Argus reaffirmed its buy rating with a $180 target, and Wedbush and RBC issued Outperform ratings. UBS raised its target to $160, though it kept a Neutral rating. Article Article
• Positive Sentiment: Traders bought a large volume of Shopify call options, suggesting some market participants are positioning for a rebound, though options activity is not a guarantee of future performance. Article
• Negative Sentiment: One report says Shopify’s results included a slight miss, which may be overshadowing its growth and prompting investors to reassess its premium valuation. Article
• Negative Sentiment: Rosenblatt lowered its expectations for the stock, while Cantor Fitzgerald issued a pessimistic forecast, adding to near-term analyst caution. Article Article

Shopify Stock Performance

Shares of NASDAQ SHOP opened at $148.91 on Friday. The company has a 50 day simple moving average of $152.51 and a two-hundred day simple moving average of $130.07. Shopify Inc. has a fifty-two week low of $94.00 and a fifty-two week high of $180.88. The company has a market capitalization of $191.59 billion, a price-to-earnings ratio of 90.80, a P/E/G ratio of 3.01 and a beta of 2.65.

Shopify (NASDAQ:SHOP - Get Free Report) TSE: SHOP last issued its quarterly earnings results on Tuesday, November 3rd. The software maker reported $0.49 EPS for the quarter, topping analysts' consensus estimates of $0.33 by $0.16. The firm had revenue of $3.74 billion for the quarter. Shopify had a return on equity of 14.03% and a net margin of 15.01%. The business's revenue for the quarter was up 31.6% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.34 earnings per share. On average, analysts forecast that Shopify Inc. will post 1.47 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

SHOP has been the subject of several research analyst reports. National Bank Financial raised their price objective on shares of Shopify from $180.00 to $185.00 and gave the stock an "outperform" rating in a report on Wednesday. JPMorgan Chase & Co. upped their target price on Shopify from $185.00 to $200.00 and gave the stock an "overweight" rating in a report on Tuesday, October 6th. Mizuho set a $180.00 target price on Shopify in a report on Thursday, September 24th. Sanford C. Bernstein reissued an "outperform" rating and issued a $165.00 target price (up from $160.00) on shares of Shopify in a research report on Wednesday. Finally, Wedbush restated an "outperform" rating and issued a $176.00 target price on shares of Shopify in a research note on Wednesday. One analyst has rated the stock with a Strong Buy rating, thirty-eight have given a Buy rating and ten have issued a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $178.82.

Shopify Profile

Shopify is a commerce technology company that provides tools for businesses to create and operate online stores. Its platform supports activities such as product management, order processing, payments, shipping, marketing and customer engagement.

Shopify also offers point-of-sale tools for merchants selling in person, connecting retail operations with online sales. Its services are used by businesses of varying sizes and are available to merchants in countries around the world.

Founded in 2006, Shopify is headquartered in Ottawa, Canada.

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