Shopify Inc. $SHOP Stock: Sumitomo Mitsui Trust Group Inc. Reduces Holdings

Key Points

• Sumitomo Mitsui Trust Group reduced its Shopify stake by 29.6% in the third quarter, selling 1.06 million shares and retaining 2.52 million shares worth approximately $374.3 million. Institutional investors collectively own 69.27% of Shopify.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and an average price target of $177.79. Benchmark and Robert W. Baird recently raised their price targets to $170 and $190, respectively.
• Shopify continues expanding its AI-enabled commerce and retail offerings, while strong merchant retention and partnerships could support growth. However, analysts caution that increased AI investment, margin pressure and the stock’s premium valuation may pose risks.

Sumitomo Mitsui Trust Group Inc. lessened its holdings in shares of Shopify Inc. (NASDAQ:SHOP - Free Report) TSE: SHOP by 29.6% during the 3rd quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 2,523,858 shares of the software maker's stock after selling 1,061,862 shares during the quarter. Sumitomo Mitsui Trust Group Inc. owned approximately 0.20% of Shopify worth $374,288,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in SHOP. Swiss National Bank lifted its stake in Shopify by 27.0% in the first quarter. Swiss National Bank now owns 4,115,300 shares of the software maker's stock valued at $487,580,000 after acquiring an additional 876,100 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. acquired a new position in shares of Shopify during the 3rd quarter worth $102,751,000. The Manufacturers Life Insurance Company increased its stake in shares of Shopify by 8.5% during the 1st quarter. The Manufacturers Life Insurance Company now owns 8,418,903 shares of the software maker's stock worth $998,137,000 after purchasing an additional 660,198 shares during the last quarter. Bank of Nova Scotia increased its stake in shares of Shopify by 24.2% during the 1st quarter. Bank of Nova Scotia now owns 3,196,004 shares of the software maker's stock worth $379,111,000 after purchasing an additional 621,893 shares during the last quarter. Finally, Nykredit A S bought a new position in shares of Shopify during the 2nd quarter valued at $41,959,000. Institutional investors own 69.27% of the company's stock.

Analyst Ratings Changes

Several research firms recently issued reports on SHOP. Benchmark lifted their price objective on shares of Shopify from $145.00 to $170.00 and gave the company a "buy" rating in a research note on Thursday, August 6th. Robert W. Baird upped their price objective on shares of Shopify from $160.00 to $190.00 and gave the stock an "outperform" rating in a report on Wednesday, October 14th. Zacks Research raised shares of Shopify from a "hold" rating to a "strong-buy" rating in a research report on Friday, October 16th. Susquehanna assumed coverage on Shopify in a report on Friday, July 10th. They set a "neutral" rating on the stock. Finally, BTIG Research assumed coverage on Shopify in a report on Friday, July 10th. They set a "buy" rating on the stock. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-six have given a Buy rating and ten have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $177.79.

Shopify News Roundup

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Condé Nast is bringing curated product selections from Vogue, GQ and other brands to Shopify’s Shop app. The partnership could increase consumer engagement, product discovery and transaction volume. Condé Nast brings product picks to Shop app
• Positive Sentiment: Shopify is broadening access to AI agents that can support commerce activity, while third-party platforms such as DRINKS are using Shopify technology to enable multi-supplier digital alcohol sales. These developments support Shopify’s positioning in AI-enabled commerce. NCR Voyix Scoops up Bruster’s; Shopify Broadens AI Agent Access
• Positive Sentiment: Shopify POS was named an overall leader in a 2026 small-business point-of-sale scorecard, reinforcing the company’s competitive position beyond its core online-store platform. 2026 Small Business POS System Scorecard
• Positive Sentiment: Analysis highlights a reported 97% retention rate among merchants that reach $10 million in annual gross merchandise volume, supporting recurring revenue and expansion potential despite competition from Adobe and Commerce.com. Can Shopify’s Strong Merchant Retention Sustain Revenue Growth?
• Neutral Sentiment: Heavy investor searches and a bullish options strategy indicate heightened attention and an optimistic trading bias, but neither provides evidence of improved fundamentals. Investors Heavily Search Shopify
• Negative Sentiment: Pre-earnings coverage warns that Shopify’s strong sales growth may be offset by higher AI investment and margin pressure. With the stock trading at a premium valuation, investors may be demanding continued earnings and profit improvement. Shopify’s Booming Sales Come With a Costly Catch

Shopify Price Performance

Shares of Shopify stock opened at $157.49 on Friday. The company has a current ratio of 5.35, a quick ratio of 5.35 and a debt-to-equity ratio of 0.01. The firm has a fifty day simple moving average of $152.78 and a 200-day simple moving average of $130.26. The stock has a market capitalization of $202.63 billion, a price-to-earnings ratio of 106.41, a PEG ratio of 3.25 and a beta of 2.62. Shopify Inc. has a 1-year low of $94.00 and a 1-year high of $180.88.

Shopify (NASDAQ:SHOP - Get Free Report) TSE: SHOP last posted its earnings results on Wednesday, August 5th. The software maker reported $0.42 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.40 by $0.02. The business 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 business's quarterly revenue was up 33.7% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.69 earnings per share. On average, sell-side analysts expect that Shopify Inc. will post 1.46 earnings per share for the current year.

About Shopify

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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