Shopify (NASDAQ:SHOP) Lowered to "Hold" Rating by Rothschild & Co Redburn

Key Points

• Shopify was downgraded by Rothschild & Co Redburn from strong-buy to hold, adding to a mixed analyst picture on the stock.
• Despite the downgrade, the broader analyst consensus remains Moderate Buy, with 32 Buy ratings, 3 Strong Buy, and a consensus price target of $157.86.
• Shopify shares were down 1.2% and recently traded at $123.03, while the company also continues to see positive developments such as a new DoorDash integration and raised price targets from some analysts.

Shopify (NASDAQ:SHOP - Get Free Report) TSE: SHOP was downgraded by research analysts at Rothschild & Co Redburn from a "strong-buy" rating to a "hold" rating in a report issued on Tuesday,Zacks.com reports.

Several other research firms have also weighed in on SHOP. Piper Sandler reiterated an "overweight" rating and set a $150.00 target price (down from $165.00) on shares of Shopify in a report on Tuesday, May 5th. Robert W. Baird set a $150.00 price target on Shopify in a report on Wednesday, May 6th. BMO Capital Markets initiated coverage on Shopify in a report on Friday, July 10th. They issued a "market perform" rating for the company. Citizens Jmp dropped their price target on Shopify from $160.00 to $150.00 and set a "market outperform" rating on the stock in a research report on Wednesday, May 6th. Finally, Zacks Research upgraded Shopify from a "hold" rating to a "strong-buy" rating in a report on Tuesday, July 7th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-two have given a Buy rating and ten have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $157.86.

Shopify Stock Down 1.2%

Shares of SHOP stock opened at $123.03 on Tuesday. Shopify has a 12-month low of $94.00 and a 12-month high of $182.19. The firm has a market capitalization of $159.65 billion, a price-to-earnings ratio of 121.81, a price-to-earnings-growth ratio of 2.70 and a beta of 2.58. The firm has a fifty day moving average of $113.37 and a 200-day moving average of $122.81.

Institutional Investors Weigh In On Shopify

Institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. raised its stake in shares of Shopify by 1.5% in the 4th quarter. Vanguard Group Inc. now owns 50,670,627 shares of the software maker's stock valued at $8,158,643,000 after purchasing an additional 743,803 shares during the period. Norges Bank acquired a new position in shares of Shopify during the fourth quarter worth about $2,611,797,000. Invesco Ltd. boosted its position in shares of Shopify by 9.8% during the fourth quarter. Invesco Ltd. now owns 14,026,193 shares of the software maker's stock worth $2,257,796,000 after buying an additional 1,252,074 shares during the period. Geode Capital Management LLC grew its holdings in shares of Shopify by 6.2% during the fourth quarter. Geode Capital Management LLC now owns 12,601,476 shares of the software maker's stock worth $2,043,365,000 after buying an additional 737,892 shares in the last quarter. Finally, Mackenzie Financial Corp grew its holdings in shares of Shopify by 9.1% during the fourth quarter. Mackenzie Financial Corp now owns 9,961,097 shares of the software maker's stock worth $1,627,352,000 after buying an additional 827,643 shares in the last quarter. 69.27% of the stock is owned by institutional investors.

Key Shopify News

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Shopify expanded its commerce ecosystem with a new native integration with DoorDash, allowing U.S. brick-and-mortar merchants to sell in-store products on the DoorDash marketplace with synced inventory and streamlined setup. This could support merchant adoption and deepen Shopify’s omnichannel offering. Shopify (SHOP) Opens DoorDash To US Retailers With Direct Selling Integration
• Positive Sentiment: National Bank Financial raised its price target on Shopify to $155 and reiterated an outperform view, signaling continued analyst confidence in the company’s growth outlook. Analyst rating update
• Positive Sentiment: Unusually heavy call-option buying suggests some traders are positioning for further upside in SHOP ahead of potential catalysts. Options activity report
• Positive Sentiment: Morgan Stanley said sentiment on software stocks has become “too negative,” implying Shopify could rebound if investors rotate back into high-quality software names. Morgan Stanley software stock commentary
• Neutral Sentiment: Shopify remains one of Zacks’ most watched stocks and was highlighted as a long-term idea, but these pieces are mostly visibility/attention items rather than fresh fundamental news. Shopify is Attracting Investor Attention Why Shopify is a Top Stock for the Long-Term
• Negative Sentiment: The stock traded lower in the latest session, reflecting ongoing pressure even as the broader market moved higher. Shopify Stock Sinks As Market Gains

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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