Shopify Sees Unusually Large Options Volume (NASDAQ:SHOP)

Key Points

• Shopify experienced a significant increase in options trading, with 76,616 call options traded on Monday, marking an 83% rise compared to its average volume.
• The company's stock price rose to $149.00, with a market capitalization of $193.65 billion, following a quarterly earnings report that showed revenue exceeding analyst expectations by nearly $0.2 billion.
• Analysts have mixed opinions on Shopify, with Royal Bank of Canada raising its target price to $170.00, while others have downgraded the stock, showing a diverse range of ratings among 44 analysts.

Shopify Inc. (NASDAQ:SHOP - Get Free Report) TSE: SHOP was the recipient of some unusual options trading on Monday. Traders acquired 76,616 call options on the company. This represents an increase of 83% compared to the average daily volume of 41,763 call options.

Shopify Price Performance

Shares of NASDAQ:SHOP traded up $8.75 during trading on Monday, reaching $149.00. 14,531,964 shares of the stock were exchanged, compared to its average volume of 9,793,868. Shopify has a 1-year low of $69.84 and a 1-year high of $159.01. The stock has a fifty day moving average of $140.00 and a two-hundred day moving average of $115.45. The firm has a market cap of $193.65 billion, a price-to-earnings ratio of 83.24, a price-to-earnings-growth ratio of 6.65 and a beta of 2.69.

Shopify (NASDAQ:SHOP - Get Free Report) TSE: SHOP last posted its earnings results on Wednesday, August 6th. The software maker reported $0.35 earnings per share for the quarter, beating analysts' consensus estimates of $0.29 by $0.06. Shopify had a return on equity of 12.30% and a net margin of 23.42%.The company had revenue of $2.68 billion for the quarter, compared to analyst estimates of $2.55 billion. During the same quarter last year, the company earned $0.26 earnings per share. The company's revenue for the quarter was up 31.1% on a year-over-year basis. Sell-side analysts forecast that Shopify will post 1.12 EPS for the current year.

Wall Street Analyst Weigh In

Several analysts recently issued reports on SHOP shares. Royal Bank Of Canada upped their target price on Shopify from $145.00 to $170.00 and gave the company an "outperform" rating in a research report on Thursday, August 7th. Loop Capital downgraded Shopify from a "buy" rating to a "hold" rating and set a $120.00 target price for the company. in a research report on Tuesday, July 22nd. Phillip Securities downgraded Shopify from a "moderate buy" rating to a "hold" rating in a research report on Tuesday, August 12th. Needham & Company LLC started coverage on Shopify in a research report on Monday, July 14th. They set a "buy" rating and a $135.00 target price for the company. Finally, Citigroup boosted their price target on Shopify from $155.00 to $195.00 and gave the stock a "buy" rating in a report on Friday, August 8th. Twenty-three analysts have rated the stock with a Buy rating, twenty have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Shopify has an average rating of "Moderate Buy" and an average target price of $151.69.

Institutional Trading of Shopify

A number of large investors have recently bought and sold shares of SHOP. Corient Private Wealth LLC boosted its stake in Shopify by 5.2% during the second quarter. Corient Private Wealth LLC now owns 84,841 shares of the software maker's stock valued at $9,786,000 after buying an additional 4,163 shares during the period. National Wealth Management Group LLC bought a new stake in Shopify during the second quarter valued at $210,000. Momentum Wealth Planning LLC bought a new stake in Shopify during the second quarter valued at $436,000. Total Investment Management Inc. bought a new stake in Shopify during the second quarter worth about $56,000. Finally, Centaurus Financial Inc. lifted its stake in Shopify by 25.2% during the second quarter. Centaurus Financial Inc. now owns 1,868 shares of the software maker's stock worth $215,000 after purchasing an additional 376 shares during the last quarter. 69.27% of the stock is owned by hedge funds and other institutional investors.

About Shopify

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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