Shopify Inc. (NASDAQ:SHOP) Given Average Rating of "Hold" by Brokerages

Key Points

• Shopify Inc. has been assigned a consensus recommendation of "Hold" from 46 brokerages, with 1 sell, 23 hold, and 22 buy ratings.
• The average 1-year target price for Shopify among brokers is $151.95, reflecting a range of recent adjustments by multiple analysts.
• Shopify reported a quarterly earnings EPS of $0.35, exceeding estimates, and saw a 31.1% increase in revenue year-over-year, totaling $2.68 billion.

Shares of Shopify Inc. (NASDAQ:SHOP - Get Free Report) TSE: SHOP have been assigned a consensus recommendation of "Hold" from the forty-six brokerages that are covering the stock, Marketbeat reports. One investment analyst has rated the stock with a sell recommendation, twenty-three have assigned a hold recommendation and twenty-two have assigned a buy recommendation to the company. The average 1-year target price among brokers that have issued a report on the stock in the last year is $151.9459.

SHOP has been the subject of a number of research analyst reports. Zacks Research upgraded Shopify to a "hold" rating in a research report on Tuesday, August 12th. Arete Research raised Shopify to a "hold" rating in a report on Wednesday, July 23rd. Evercore ISI increased their target price on Shopify from $120.00 to $170.00 and gave the company an "outperform" rating in a research report on Friday, August 8th. Truist Financial increased their target price on Shopify from $95.00 to $150.00 and gave the company a "hold" rating in a research report on Thursday, August 7th. Finally, Robert W. Baird increased their target price on Shopify from $160.00 to $170.00 and gave the company an "outperform" rating in a research report on Tuesday.

Shopify Price Performance

Shares of SHOP opened at $163.87 on Friday. Shopify has a 1 year low of $69.84 and a 1 year high of $169.69. The company has a 50 day simple moving average of $145.96 and a two-hundred day simple moving average of $118.77. The firm has a market cap of $212.98 billion, a P/E ratio of 91.55, a price-to-earnings-growth ratio of 7.79 and a beta of 2.72.

Shopify (NASDAQ:SHOP - Get Free Report) TSE: SHOP last announced its quarterly earnings results on Wednesday, August 6th. The software maker reported $0.35 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.29 by $0.06. The company had revenue of $2.68 billion for the quarter, compared to the consensus estimate of $2.55 billion. Shopify had a net margin of 23.42% and a return on equity of 12.30%. Shopify's revenue for the quarter was up 31.1% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.26 EPS. On average, sell-side analysts anticipate that Shopify will post 1.12 earnings per share for the current year.

Hedge Funds Weigh In On Shopify

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Family Legacy Financial Solutions LLC purchased a new stake in shares of Shopify in the second quarter valued at $25,000. Financial Gravity Companies Inc. purchased a new stake in shares of Shopify during the second quarter valued at $27,000. Rothschild Investment LLC boosted its stake in shares of Shopify by 47.5% during the second quarter. Rothschild Investment LLC now owns 233 shares of the software maker's stock valued at $27,000 after purchasing an additional 75 shares during the period. Heartwood Wealth Advisors LLC purchased a new stake in shares of Shopify during the third quarter valued at $27,000. Finally, Tradewinds Capital Management LLC boosted its stake in shares of Shopify by 71.4% during the second quarter. Tradewinds Capital Management LLC now owns 240 shares of the software maker's stock valued at $28,000 after purchasing an additional 100 shares during the period. 69.27% of the stock is owned by hedge funds and other institutional investors.

About Shopify

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.

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