Shopify (NYSE:SHOP) Hits New 52-Week High After Strong Earnings

Key Points

• Shopify's stock reached a new 52-week high of $156.39 following an earnings report that significantly exceeded analysts' expectations with earnings per share of $0.69.
• The company's revenue increased by 31.1% year-over-year, showcasing strong financial performance and a net margin of 22.74%.
• Institutional ownership of Shopify stands at 69.27%, indicating robust interest from large investors amidst various analyst rating changes, with a consensus rating of "Moderate Buy".

Shopify Inc. (NYSE:SHOP - Get Free Report) TSE: SHOP's stock price hit a new 52-week high during mid-day trading on Wednesday following a better than expected earnings announcement. The stock traded as high as $156.39 and last traded at $151.13, with a volume of 13486702 shares traded. The stock had previously closed at $127.00.

The software maker reported $0.69 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.28 by $0.41. Shopify had a return on equity of 12.00% and a net margin of 22.74%. During the same period last year, the company earned $0.26 earnings per share. The company's revenue was up 31.1% compared to the same quarter last year.

Analyst Ratings Changes

A number of research analysts recently commented on SHOP shares. Cantor Fitzgerald reissued a "neutral" rating and issued a $91.00 price target on shares of Shopify in a report on Wednesday, June 11th. Truist Financial reduced their price target on Shopify from $120.00 to $100.00 and set a "hold" rating for the company in a report on Tuesday, May 6th. Capital One Financial raised Shopify from an "equal weight" rating to an "overweight" rating in a report on Thursday, May 8th. KeyCorp increased their price target on Shopify from $115.00 to $145.00 and gave the company an "overweight" rating in a report on Tuesday, July 22nd. Finally, Wells Fargo & Company increased their price target on Shopify from $107.00 to $125.00 and gave the company an "overweight" rating in a report on Friday, June 6th. One analyst has rated the stock with a sell rating, eighteen have issued a hold rating, twenty-two have given a buy rating and two have given a strong buy rating to the company's stock. According to data from MarketBeat, Shopify presently has an average rating of "Moderate Buy" and an average target price of $120.74.

Institutional Trading of Shopify

Several large investors have recently added to or reduced their stakes in SHOP. Capital World Investors increased its position in shares of Shopify by 0.9% during the 4th quarter. Capital World Investors now owns 53,102,707 shares of the software maker's stock valued at $5,646,455,000 after purchasing an additional 496,982 shares during the period. Vanguard Group Inc. increased its position in shares of Shopify by 1.9% during the 1st quarter. Vanguard Group Inc. now owns 47,962,280 shares of the software maker's stock valued at $4,563,106,000 after purchasing an additional 882,168 shares during the period. Capital International Investors increased its position in shares of Shopify by 2.7% during the 4th quarter. Capital International Investors now owns 36,516,305 shares of the software maker's stock valued at $3,883,039,000 after purchasing an additional 968,026 shares during the period. FIL Ltd increased its position in shares of Shopify by 11.9% during the 4th quarter. FIL Ltd now owns 15,774,148 shares of the software maker's stock valued at $1,678,865,000 after purchasing an additional 1,682,326 shares during the period. Finally, Jennison Associates LLC increased its position in shares of Shopify by 118.1% during the 2nd quarter. Jennison Associates LLC now owns 11,519,610 shares of the software maker's stock valued at $1,328,787,000 after purchasing an additional 6,238,829 shares during the period. 69.27% of the stock is currently owned by institutional investors and hedge funds.

Shopify Trading Up 19.6%

The company has a market capitalization of $197.06 billion, a price-to-earnings ratio of 98.00, a PEG ratio of 4.82 and a beta of 2.63. The firm has a 50-day moving average price of $114.78 and a 200-day moving average price of $106.89.

Shopify Company Profile

Shopify Inc, a commerce company, provides a commerce platform and services in Canada, the United States, Europe, the Middle East, Africa, the Asia Pacific, Australia, China, and Latin America. The company's platform enables merchants to displays, manages, markets, and sells its products through various sales channels, including web and mobile storefronts, physical retail locations, pop-up shops, social media storefronts, native mobile apps, buy buttons, and marketplaces; and enables to manage products and inventory, process orders and payments, fulfill and ship orders, new buyers and build customer relationships, source products, leverage analytics and reporting, manage cash, payments and transactions, and access financing.

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