Investors Buy Large Volume of Call Options on Shopify (NYSE:SHOP)

Key Points

• Investors have shown significant interest in Shopify, buying 64,822 call options on Thursday, marking a 33% increase from the average daily volume of 48,610 call options.
• Wall Street analysts have mostly upgraded their ratings for Shopify, with targets set as high as $185.00, reflecting overall positive sentiment and an average price target of $148.51.
• Shopify reported a 31.1% increase in revenue from the previous year, with earnings per share of $0.35, above the consensus estimate of $0.29.

Shopify Inc. (NYSE:SHOP - Get Free Report) TSE: SHOP was the target of unusually large options trading on Thursday. Stock investors purchased 64,822 call options on the company. Thisrepresentsanincreaseofapproximately33% compared to the average daily volume of 48,610 call options.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on SHOP shares. Benchmark reaffirmed a "buy" rating and set a $140.00 price target (up from $125.00) on shares of Shopify in a research report on Tuesday, August 5th. DA Davidson increased their target price on shares of Shopify from $125.00 to $185.00 and gave the stock a "buy" rating in a research note on Thursday, August 7th. Canaccord Genuity Group increased their target price on shares of Shopify from $115.00 to $165.00 and gave the stock a "buy" rating in a research note on Thursday, August 7th. JPMorgan Chase & Co. upped their price target on shares of Shopify from $115.00 to $179.00 and gave the stock an "overweight" rating in a research report on Thursday, August 7th. Finally, Stifel Nicolaus upped their price target on shares of Shopify from $110.00 to $150.00 and gave the stock a "hold" rating in a research report on Thursday, August 7th. One equities research analyst has rated the stock with a sell rating, nineteen have issued a hold rating and twenty-four have given a buy rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $148.51.

Shopify Stock Performance

Shares of Shopify stock traded down $5.05 on Thursday, reaching $145.05. 6,489,512 shares of the company's stock were exchanged, compared to its average volume of 10,474,482. The company has a market capitalization of $188.18 billion, a P/E ratio of 93.47, a price-to-earnings-growth ratio of 4.82 and a beta of 2.63. Shopify has a 52 week low of $65.86 and a 52 week high of $156.85. The firm's 50-day moving average is $120.13 and its two-hundred day moving average is $108.72.

Shopify (NYSE:SHOP - Get Free Report) TSE: SHOP last posted its quarterly earnings results on Wednesday, August 6th. The software maker reported $0.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.29 by $0.06. Shopify had a net margin of 22.74% and a return on equity of 12.00%. The business had revenue of $2.68 billion during the quarter, compared to the consensus estimate of $2.55 billion. During the same quarter last year, the firm posted $0.26 EPS. Shopify's revenue was up 31.1% compared to the same quarter last year. On average, analysts expect that Shopify will post 1.12 EPS for the current fiscal year.

Institutional Trading of Shopify

Large investors have recently modified their holdings of the business. Mather Group LLC. grew its stake in Shopify by 127.4% in the first quarter. Mather Group LLC. now owns 912 shares of the software maker's stock worth $87,000 after purchasing an additional 511 shares during the period. Dynamic Advisor Solutions LLC purchased a new stake in shares of Shopify during the 1st quarter valued at about $382,000. GAMMA Investing LLC boosted its holdings in shares of Shopify by 80.0% during the 1st quarter. GAMMA Investing LLC now owns 963 shares of the software maker's stock valued at $92,000 after acquiring an additional 428 shares during the last quarter. Bessemer Group Inc. boosted its holdings in shares of Shopify by 3.8% during the 1st quarter. Bessemer Group Inc. now owns 1,059,585 shares of the software maker's stock valued at $101,163,000 after acquiring an additional 38,616 shares during the last quarter. Finally, Assenagon Asset Management S.A. boosted its holdings in shares of Shopify by 1.1% during the 1st quarter. Assenagon Asset Management S.A. now owns 38,732 shares of the software maker's stock valued at $3,694,000 after acquiring an additional 432 shares during the last quarter. Institutional investors own 69.27% of the company's stock.

Shopify Company Profile

Shopify Inc, a commerce company, provides a commerce platform and services in Canada, the United States, Europe, the Middle East, Africa, the Asia Pacific, Australia, China, and Latin America. The company's platform enables merchants to displays, manages, markets, and sells its products through various sales channels, including web and mobile storefronts, physical retail locations, pop-up shops, social media storefronts, native mobile apps, buy buttons, and marketplaces; and enables to manage products and inventory, process orders and payments, fulfill and ship orders, new buyers and build customer relationships, source products, leverage analytics and reporting, manage cash, payments and transactions, and access financing.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.