Shopify (NASDAQ:SHOP) Downgraded by Phillip Securities to Moderate Buy

Key Points

• Phillip Securities downgraded Shopify from “strong buy” to “moderate buy,” while the broader analyst consensus remains “moderate buy,” with an average price target of $170.72.
• Shopify shares opened at $148.65 after falling 3.7%; the stock has a market capitalization of approximately $191.3 billion and trades near the upper end of its $94.00–$182.19 one-year range.
• In its latest quarter, Shopify reported $0.42 in earnings per share versus the $0.40 consensus estimate and revenue of $3.58 billion, up 33.7% year over year. Institutional investors own about 69.27% of the company.

Shopify (NASDAQ:SHOP - Get Free Report) TSE: SHOP was downgraded by stock analysts at Phillip Securities from a "strong-buy" rating to a "moderate buy" rating in a report issued on Monday,Zacks.com reports.

A number of other equities analysts have also weighed in on SHOP. Rothschild & Co Redburn set a $130.00 price objective on Shopify and gave the stock a "neutral" rating in a research note on Tuesday, July 21st. BMO Capital Markets set a $165.00 target price on Shopify and gave the stock an "outperform" rating in a research note on Thursday, August 6th. Oppenheimer reiterated an "outperform" rating and set a $175.00 price target on shares of Shopify in a report on Wednesday, May 6th. Susquehanna started coverage on shares of Shopify in a research report on Friday, July 10th. They set a "neutral" rating on the stock. Finally, Citizens Jmp upped their price objective on shares of Shopify from $150.00 to $185.00 and gave the company a "market outperform" rating in a report on Thursday, August 6th. Thirty-five equities research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $170.72.

Shopify Trading Down 3.7%

SHOP opened at $148.65 on Monday. The company has a debt-to-equity ratio of 0.01, a current ratio of 5.35 and a quick ratio of 5.35. The company's 50 day simple moving average is $123.73 and its two-hundred day simple moving average is $120.17. Shopify has a 1-year low of $94.00 and a 1-year high of $182.19. The firm has a market capitalization of $191.26 billion, a price-to-earnings ratio of 100.44, a price-to-earnings-growth ratio of 3.15 and a beta of 2.58.

Shopify (NASDAQ:SHOP - Get Free Report) TSE: SHOP last issued its earnings results on Wednesday, August 5th. The software maker reported $0.42 earnings per share for the quarter, topping the consensus estimate of $0.40 by $0.02. Shopify had a return on equity of 12.58% and a net margin of 14.53%.The business had revenue of $3.58 billion for the quarter. During the same quarter in the prior year, the firm earned $0.69 earnings per share. The company's revenue for the quarter was up 33.7% on a year-over-year basis. Analysts expect that Shopify will post 1.45 EPS for the current fiscal year.

Institutional Investors Weigh In On Shopify

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Brighton Jones LLC increased its position in shares of Shopify by 2.8% during the 4th quarter. Brighton Jones LLC now owns 21,176 shares of the software maker's stock worth $2,252,000 after purchasing an additional 584 shares during the last quarter. AQR Capital Management LLC increased its position in shares of Shopify by 107.3% during the first quarter. AQR Capital Management LLC now owns 14,576 shares of the software maker's stock valued at $1,392,000 after acquiring an additional 7,544 shares during the last quarter. Sivia Capital Partners LLC increased its position in shares of Shopify by 6.6% during the second quarter. Sivia Capital Partners LLC now owns 8,190 shares of the software maker's stock valued at $945,000 after acquiring an additional 506 shares during the last quarter. Osterweis Capital Management Inc. purchased a new stake in shares of Shopify in the 2nd quarter valued at approximately $53,000. Finally, Main Street Financial Solutions LLC raised its stake in shares of Shopify by 15.3% in the 2nd quarter. Main Street Financial Solutions LLC now owns 11,131 shares of the software maker's stock valued at $1,284,000 after acquiring an additional 1,479 shares during the period. Institutional investors and hedge funds own 69.27% of the company's stock.

About Shopify

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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