Shopify (NASDAQ:SHOP) Now Covered by Analysts at Rosenblatt Securities

Key Points

• Rosenblatt Securities initiated coverage of Shopify with a “buy” rating and a $175 price target, implying 19.39% upside from the reported price. Analysts overall rate the stock “Moderate Buy,” with an average target of $170.84.
• Shopify reported quarterly EPS of $0.42, exceeding the $0.40 consensus estimate, while revenue rose 33.7% year over year to $3.58 billion.
• Institutional investors hold 69.27% of Shopify’s shares, with several major funds—including Norges Bank, Sands Capital, and Invesco—recently increasing or initiating positions.

Research analysts at Rosenblatt Securities initiated coverage on shares of Shopify (NASDAQ:SHOP - Get Free Report) TSE: SHOP in a report released on Thursday. The brokerage set a "buy" rating and a $175.00 price target on the software maker's stock. Rosenblatt Securities' target price suggests a potential upside of 19.39% from the company's current price.

A number of other brokerages have also commented on SHOP. BTIG Research started coverage on Shopify in a research report on Friday, July 10th. They issued a "buy" rating for the company. Weiss Ratings upgraded shares of Shopify from a "hold (c-)" rating to a "hold (c)" rating in a report on Monday. Citizens Jmp boosted their price objective on Shopify from $150.00 to $185.00 and gave the stock a "market outperform" rating in a report on Thursday, August 6th. Truist Financial set a $180.00 price target on Shopify and gave the company a "buy" rating in a research report on Wednesday, August 5th. Finally, Citigroup restated an "outperform" rating on shares of Shopify in a report on Thursday, August 6th. Thirty-six research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the stock. Based on data from MarketBeat, Shopify currently has an average rating of "Moderate Buy" and an average target price of $170.84.

Shopify Stock Performance

SHOP stock opened at $146.58 on Thursday. The firm has a market cap of $188.60 billion, a PE ratio of 99.04, a price-to-earnings-growth ratio of 2.99 and a beta of 2.58. The company has a current ratio of 5.35, a quick ratio of 5.35 and a debt-to-equity ratio of 0.01. The stock has a 50-day moving average price of $125.22 and a 200-day moving average price of $120.25. Shopify has a 1-year low of $94.00 and a 1-year high of $182.19.

Shopify (NASDAQ:SHOP - Get Free Report) TSE: SHOP last issued its quarterly earnings results on Wednesday, August 5th. The software maker reported $0.42 earnings per share (EPS) for the quarter, beating 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 firm had revenue of $3.58 billion for the quarter. During the same period last year, the firm posted $0.69 earnings per share. Shopify's quarterly revenue was up 33.7% compared to the same quarter last year. As a group, equities research analysts expect that Shopify will post 1.45 earnings per share for the current year.

Hedge Funds Weigh In On Shopify

Institutional investors have recently added to or reduced their stakes in the business. Norges Bank purchased a new stake in shares of Shopify during the 4th quarter valued at $2,611,797,000. Sands Capital Management LLC lifted its holdings in shares of Shopify by 37.0% during the 4th quarter. Sands Capital Management LLC now owns 9,506,036 shares of the software maker's stock worth $1,530,187,000 after acquiring an additional 2,568,765 shares during the last quarter. Invesco Ltd. grew its position in Shopify by 9.8% in the fourth quarter. Invesco Ltd. now owns 14,026,193 shares of the software maker's stock worth $2,257,796,000 after acquiring an additional 1,252,074 shares in the last quarter. Thrivent Financial for Lutherans grew its position in Shopify by 7,207.2% in the fourth quarter. Thrivent Financial for Lutherans now owns 1,148,259 shares of the software maker's stock worth $184,883,000 after acquiring an additional 1,132,545 shares in the last quarter. Finally, Select Equity Group L.P. increased its stake in Shopify by 92.5% in the second quarter. Select Equity Group L.P. now owns 2,246,473 shares of the software maker's stock valued at $259,124,000 after acquiring an additional 1,079,494 shares during the last quarter. 69.27% of the stock is currently owned by institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source