Investors Purchase Large Volume of Shopify Call Options (NASDAQ:SHOP)

Key Points

• Unusual options activity: Traders bought 102,199 Shopify call options on Wednesday, 125% above the typical volume of 45,372.
• Quarterly results beat earnings expectations: Shopify reported EPS of $0.49 versus the $0.33 consensus and revenue of $3.74 billion, up 31.6% year over year. Shares rose $8.76 to $151.33 during Wednesday trading.
• Analyst sentiment is broadly positive: MarketBeat reported a “Moderate Buy” consensus and an average price target of $178.49; institutional investors own 69.27% of the stock.

Shopify Inc. (NASDAQ:SHOP - Get Free Report) TSE: SHOP was the target of some unusual options trading activity on Wednesday. Stock traders acquired 102,199 call options on the company. This represents an increase of 125% compared to the typical volume of 45,372 call options.

Institutional Trading of Shopify

A number of institutional investors and hedge funds have recently bought and sold shares of SHOP. Fortitude Family Office LLC purchased a new position in Shopify during the 3rd quarter worth $29,000. MADDEN SECURITIES Corp purchased a new stake in Shopify in the 3rd quarter valued at approximately $30,000. Laurel Wealth Advisors LLC purchased a new position in shares of Shopify during the 3rd quarter worth approximately $32,000. Graney & King LLC purchased a new stake in shares of Shopify in the first quarter valued at approximately $27,000. Finally, Trellis Wealth Advisors LLC acquired a new position in Shopify during the third quarter worth $37,000. 69.27% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on SHOP. Evercore reissued an "outperform" rating and set a $175.00 price objective (up from $135.00) on shares of Shopify in a report on Wednesday, August 5th. Canaccord Genuity Group set a $180.00 target price on shares of Shopify and gave the stock a "buy" rating in a research report on Wednesday, August 5th. Phillip Securities cut Shopify from a "strong-buy" rating to a "moderate buy" rating in a report on Monday, August 17th. Bank of America assumed coverage on Shopify in a research note on Tuesday, July 7th. They issued a "buy" rating and a $150.00 price target on the stock. Finally, ATB Cormark Capital Markets lowered Shopify from a "moderate buy" rating to a "hold" rating in a report on Thursday, October 22nd. One analyst has rated the stock with a Strong Buy rating, thirty-eight have assigned a Buy rating and ten have issued a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $178.49.

Key Stories Impacting Shopify

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Shopify reported Q3 revenue of about $3.7 billion, up 32% year over year, and earnings of $0.49 per share, above consensus. Operating income reportedly rose 66%, while free cash flow increased 61% to $816 million. Shopify Stock Fell After Its Report. Here's the Price I'd Pay for It.
• Positive Sentiment: Wedbush reaffirmed its outperform rating with a $176 price target. Rosenblatt lowered its target from $186 to $180 but kept a buy rating, both indicating further potential upside from the prices cited in the reports.
• Positive Sentiment: Management highlighted momentum in AI-enabled commerce: AI-driven traffic was up 2.6 times, and Shop Pay gross merchandise volume rose 50%. Shopify Q3 2026 Earnings Call Highlights
• Neutral Sentiment: Analyst views remain divided: Cantor Fitzgerald cut its target from $158 to $150 and maintained a neutral rating, while other analysts’ targets remain higher. Cantor Fitzgerald recommendations
• Negative Sentiment: The main pressure is that Q3 gross merchandise volume was $119.1 billion, slightly below the roughly $120 billion expected, alongside a subscription-revenue shortfall. With Shopify’s valuation elevated, investors appear to be treating even modest misses as significant. Shopify falls after Q3 revenue and merchandise volume miss estimates
• Negative Sentiment: Reports also cite AI-computing expenses and pre-holiday infrastructure investment as potential cost and margin concerns, tempering the positive growth and cash-flow figures.

Shopify Stock Performance

SHOP traded up $8.76 during midday trading on Wednesday, reaching $151.33. The company had a trading volume of 4,791,329 shares, compared to its average volume of 10,254,485. The business has a 50-day moving average of $152.77 and a two-hundred day moving average of $130.13. The company has a quick ratio of 5.35, a current ratio of 5.35 and a debt-to-equity ratio of 0.01. Shopify has a 1 year low of $94.00 and a 1 year high of $180.88. The company has a market cap of $194.71 billion, a P/E ratio of 102.25, a P/E/G ratio of 3.23 and a beta of 2.65.

Shopify (NASDAQ:SHOP - Get Free Report) TSE: SHOP last announced its quarterly earnings data 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. Shopify had a return on equity of 12.58% and a net margin of 14.53%. The company had revenue of $3.74 billion during the quarter. During the same quarter last year, the firm posted $0.34 earnings per share. The company's revenue was up 31.6% compared to the same quarter last year. As a group, equities research analysts predict that Shopify will post 1.46 earnings per share for the current fiscal year.

Shopify Company 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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