Shopify Inc. $SHOP Stock Position Lessened by Baird Financial Group Inc.

Key Points

• Baird Financial Group reduced its Shopify position by 17.1% in the second quarter, selling 26,701 shares and retaining 129,500 shares valued at $14.8 million. Institutional investors collectively own 69.27% of the company.
• Analyst sentiment remains broadly positive, with Shopify holding a “Moderate Buy” consensus rating and an average price target of $171.34, despite recent downgrades to “Hold.” Piper Sandler raised its target to $180.
• Shopify reported 33.7% year-over-year revenue growth and quarterly EPS of $0.42, beating estimates, but its high valuation—with a P/E ratio near 87—and competition from AI agents remain notable investor concerns.

Baird Financial Group Inc. trimmed its holdings in shares of Shopify Inc. (NASDAQ:SHOP - Free Report) TSE: SHOP by 17.1% during the second quarter, according to its most recent Form 13F filing with the SEC. The firm owned 129,500 shares of the software maker's stock after selling 26,701 shares during the period. Baird Financial Group Inc.'s holdings in Shopify were worth $14,786,000 at the end of the most recent reporting period.

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

Analyst Upgrades and Downgrades

SHOP has been the subject of a number of research analyst reports. DZ Bank downgraded shares of Shopify from a "strong-buy" rating to a "hold" rating in a report on Friday, August 7th. Zacks Research cut shares of Shopify from a "strong-buy" rating to a "hold" rating in a research note on Friday, August 7th. Piper Sandler reiterated an "overweight" rating and issued a $180.00 target price (up from $172.00) on shares of Shopify in a report on Tuesday. Rothschild & Co Redburn set a $130.00 target price on shares of Shopify and gave the company a "neutral" rating in a research note on Tuesday, July 21st. Finally, Susquehanna initiated coverage on shares of Shopify in a report on Friday, July 10th. They set a "neutral" rating for the company. Two research analysts have rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating and ten have given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $171.34.

Shopify Stock Up 1.7%

Shares of NASDAQ:SHOP opened at $128.79 on Friday. The firm has a 50 day simple moving average of $135.65 and a 200 day simple moving average of $123.14. Shopify Inc. has a 52 week low of $94.00 and a 52 week high of $182.19. The company has a debt-to-equity ratio of 0.01, a quick ratio of 5.35 and a current ratio of 5.35. The company has a market cap of $165.71 billion, a PE ratio of 87.02, a price-to-earnings-growth ratio of 2.63 and a beta of 2.61.

Shopify (NASDAQ:SHOP - Get Free Report) TSE: SHOP last posted its quarterly earnings data on Wednesday, August 5th. The software maker reported $0.42 earnings per share for the quarter, topping the consensus estimate of $0.40 by $0.02. The firm had revenue of $3.58 billion for the quarter. Shopify had a net margin of 14.53% and a return on equity of 12.58%. The company's revenue for the quarter was up 33.7% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.69 earnings per share. As a group, research analysts expect that Shopify Inc. will post 1.45 earnings per share for the current year.

Key Headlines Impacting Shopify

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Bernstein starts coverage at Outperform: Bernstein initiated coverage with a $160 price target, implying more than 26% upside from Thursday’s close. The firm said Shopify is well positioned to lead innovation in commerce, supporting the stock’s premarket strength. Shopify Shares Rise 2.5% as Bernstein Starts Coverage at Outperform
• Positive Sentiment: Operating leverage and AI-commerce potential: StoneX highlighted that Shopify’s headcount has remained flat for more than eight quarters while revenue grew roughly 34%, suggesting improving efficiency. Analysts also view Shopify’s AI commerce initiatives as a potential growth driver rather than an immediate threat. StoneX Backs Shopify on Agent Commerce Data
• Positive Sentiment: Expansion of merchant services: Analysts remain constructive after Shopify’s reported 34% revenue growth, strong gross merchandise volume and $654 million in free cash flow. The planned expansion of Shop Pay Installments into Australia and the addition of Tailwind Labs’ team could strengthen Shopify’s merchant ecosystem and custom-storefront capabilities. Shopify: Buy The Affirm Australia Expansion, But Do Not Chase Blindly
• Neutral Sentiment: Recent selloff leaves technical and valuation questions: SHOP recently fell below a key technical level and remains below its 50-day moving average, although it is above its 200-day average. With a price-to-earnings ratio near 87, investors may be reluctant to chase the rebound despite the bullish $160 target. Turn Shopify Stock Sell-Off Into A Profit Opportunity With This Spread Strategy
• Negative Sentiment: AI-agent competition remains a concern: The launch of consumer AI agents from companies including Meta has weighed on confidence in Shopify, contributing to a sharp recent decline. The bullish view is that these agents may ultimately drive more commerce through Shopify’s infrastructure, but that thesis is not yet proven. Why Meta’s Consumer AI Agent Is Good News for Shopify Stock

Shopify Company Profile

Shopify Inc NASDAQ: SHOP is a commerce technology company that provides tools for businesses of various sizes to start, operate and grow retail operations. Its platform enables merchants to create and manage online stores, sell through social media and other digital channels, and support in-person sales through Shopify's point-of-sale solutions.

Shopify's products and services include online storefront and website-building tools, payment processing through Shopify Payments, point-of-sale hardware and software, inventory and order management, shipping and fulfillment tools, marketing features, analytics, and financing services for eligible merchants.

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