Shopify (NASDAQ:SHOP) Trading Down 3.4% - Here's Why

Key Points

• Shares fell 3.4% to $130.20 midday (low $128.01) on Friday, with volume of about 15.24 million shares, roughly 16% above the average session volume.
• Analyst activity was mixed—some firms cut targets while others upgraded; the consensus rating is a Moderate Buy with an average price target of $162.64.
• Key fundamentals: market cap ~$169.5 billion, P/E ~140, 50-day/200-day moving averages of $138.11 and $149.08 respectively, and institutional ownership of 69.27%.

Shopify Inc. (NASDAQ:SHOP - Get Free Report) TSE: SHOP shares fell 3.4% during mid-day trading on Friday . The stock traded as low as $128.01 and last traded at $130.20. 15,243,951 shares traded hands during trading, an increase of 16% from the average session volume of 13,184,554 shares. The stock had previously closed at $134.79.

Analyst Ratings Changes

Several equities research analysts have commented on SHOP shares. Wedbush dropped their price target on shares of Shopify from $185.00 to $160.00 and set an "outperform" rating on the stock in a research note on Thursday, February 12th. TD Securities upgraded shares of Shopify from a "hold" rating to a "buy" rating and set a $159.00 target price for the company in a report on Thursday, February 12th. BNP Paribas Exane started coverage on Shopify in a report on Monday, November 24th. They issued a "neutral" rating on the stock. Robert W. Baird set a $160.00 price objective on Shopify in a research report on Thursday, February 12th. Finally, Stifel Nicolaus set a $115.00 target price on Shopify and gave the stock a "hold" rating in a report on Wednesday, February 11th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-one have assigned 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 an average price target of $162.64.

Shopify Trading Down 3.4%

The stock has a market cap of $169.50 billion, a P/E ratio of 140.00, a P/E/G ratio of 4.72 and a beta of 2.83. The firm's fifty day moving average is $138.11 and its 200 day moving average is $149.08.

Institutional Trading of Shopify

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Knights of Columbus Asset Advisors LLC bought a new position in shares of Shopify during the 3rd quarter worth approximately $4,110,000. Principal Financial Group Inc. increased its position in shares of Shopify by 16.3% during the 3rd quarter. Principal Financial Group Inc. now owns 450,895 shares of the software maker's stock worth $67,006,000 after purchasing an additional 63,300 shares in the last quarter. Triton Financial Group Inc bought a new position in Shopify during the 3rd quarter valued at about $1,931,000. IQ EQ FUND MANAGEMENT IRELAND Ltd boosted its position in Shopify by 65.5% in the third quarter. IQ EQ FUND MANAGEMENT IRELAND Ltd now owns 158,514 shares of the software maker's stock valued at $23,557,000 after buying an additional 62,743 shares in the last quarter. Finally, TriaGen Wealth Management LLC bought a new stake in Shopify during the third quarter worth about $2,562,000. 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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