Shopify Inc. (NASDAQ:SHOP) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Shares of Shopify carry an average analyst recommendation of “Moderate Buy” from 43 brokerages (31 buys, 10 holds, 2 strong buys) with a mean 1‑year price target of $162.64.
• Large institutions are increasing exposure—Norges Bank bought a new stake worth about $2.61 billion and firms like Jennison, Sands Capital and Brown Advisory materially boosted holdings, leaving institutions owning roughly 69.27% of the stock.
• Shopify opened at $130.20, has a market cap of $169.5 billion and a P/E of 140, trading near its 50‑day average ($137.30) but below its 200‑day average ($149.14) and well under its 1‑year high of $182.19.

Shares of Shopify Inc. (NASDAQ:SHOP - Get Free Report) TSE: SHOP have been given an average recommendation of "Moderate Buy" by the forty-three brokerages that are currently covering the firm, Marketbeat Ratings reports. Ten equities research analysts have rated the stock with a hold rating, thirty-one have given a buy rating and two have issued a strong buy rating on the company. The average 1 year target price among brokerages that have issued ratings on the stock in the last year is $162.6389.

Several equities research analysts recently commented on SHOP shares. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and issued a $175.00 price objective on shares of Shopify in a report on Thursday, February 12th. KeyCorp reaffirmed an "overweight" rating and set a $160.00 price target on shares of Shopify in a report on Wednesday, February 11th. Mizuho upgraded shares of Shopify from a "neutral" rating to an "outperform" rating and set a $150.00 price target for the company in a research note on Thursday, February 12th. Needham & Company LLC reissued a "buy" rating and set a $180.00 price objective on shares of Shopify in a report on Thursday, February 12th. Finally, UBS Group lowered their price objective on shares of Shopify from $165.00 to $145.00 and set a "neutral" rating on the stock in a research report on Thursday, February 12th.

Hedge Funds Weigh In On Shopify

Hedge funds and other institutional investors have recently modified their holdings of the company. Norges Bank purchased a new stake in Shopify during the fourth quarter valued at $2,611,797,000. Jennison Associates LLC boosted its position in Shopify by 64.3% in the third quarter. Jennison Associates LLC now owns 18,923,431 shares of the software maker's stock worth $2,812,211,000 after purchasing an additional 7,403,821 shares during the last quarter. Sands Capital Management LLC boosted its position in Shopify by 37.0% in the fourth quarter. Sands Capital Management LLC now owns 9,506,036 shares of the software maker's stock worth $1,530,187,000 after purchasing an additional 2,568,765 shares during the last quarter. Brown Advisory Inc. grew its stake in shares of Shopify by 5,193.6% during the 2nd quarter. Brown Advisory Inc. now owns 2,066,884 shares of the software maker's stock valued at $238,419,000 after purchasing an additional 2,027,839 shares during the period. Finally, Geode Capital Management LLC grew its stake in shares of Shopify by 19.9% during the 2nd quarter. Geode Capital Management LLC now owns 10,731,795 shares of the software maker's stock valued at $1,247,007,000 after purchasing an additional 1,781,530 shares during the period. 69.27% of the stock is owned by institutional investors.

Shopify Price Performance

SHOP stock opened at $130.20 on Monday. The stock has a market capitalization of $169.50 billion, a P/E ratio of 140.00, a P/E/G ratio of 4.67 and a beta of 2.83. Shopify has a 1-year low of $69.84 and a 1-year high of $182.19. The business has a fifty day moving average price of $137.30 and a 200-day moving average price of $149.14.

Shopify Company Profile

Shopify is a Canadian commerce technology company that provides a cloud-based platform for businesses to create, manage and scale online and physical retail stores. Its core offering is a software-as-a-service e-commerce platform that enables merchants to build customizable storefronts, manage product catalogs, process orders, and handle inventory. Shopify also supports omnichannel selling through integrated point-of-sale (POS) systems for in-person transactions.

Beyond storefront software, Shopify offers a range of merchant services and tools designed to simplify commerce operations.

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