Shopify (TSE:SHOP) Stock Price Down 6% - Here's Why

Key Points

• Stock down ~6% — Shopify shares fell to C$169.77 (intraday low C$169.38), down about 6% on Thursday with only 336,792 shares traded, an 83% drop from average volume.
• Analysts are mixed: Wells Fargo cut its target to C$166 while ATB Cormark upgraded to "outperform" with a C$250 target; the consensus rating is "Moderate Buy" with an average price target of C$209.67.
• Valuation and recent results: Shopify has a market cap of C$219B and a high P/E of 179.11 after reporting C$0.78 EPS and C$4.88B revenue for the quarter, with analysts forecasting roughly C$1.93 EPS for the fiscal year.

Shopify Inc. (TSE:SHOP - Get Free Report)'s share price traded down 6% on Thursday . The stock traded as low as C$169.38 and last traded at C$169.77. 336,792 shares changed hands during trading, a decline of 83% from the average session volume of 1,957,256 shares. The stock had previously closed at C$180.62.

Analysts Set New Price Targets

Several research analysts recently weighed in on the stock. Wells Fargo & Company reduced their price objective on shares of Shopify from $191.00 to $166.00 and set an "overweight" rating on the stock in a research note on Monday, April 6th. ATB Cormark Capital Markets upgraded shares of Shopify from a "sector perform" rating to an "outperform" rating and set a C$250.00 price objective for the company in a research report on Tuesday, February 10th. Two equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat, Shopify has an average rating of "Moderate Buy" and a consensus price target of C$209.67.

Shopify Stock Down 6.8%

The firm has a 50-day moving average price of C$167.02 and a two-hundred day moving average price of C$198.74. The company has a debt-to-equity ratio of 2.66, a current ratio of 5.92 and a quick ratio of 5.74. The company has a market capitalization of C$219.03 billion, a price-to-earnings ratio of 179.11, a PEG ratio of 0.87 and a beta of 1.68.

Shopify (TSE:SHOP - Get Free Report) last announced its quarterly earnings data on Wednesday, February 11th. The company reported C$0.78 EPS for the quarter. Shopify had a net margin of 10.70% and a return on equity of 10.12%. The business had revenue of C$4.88 billion for the quarter. As a group, sell-side analysts anticipate that Shopify Inc. will post 1.9256156 earnings per share for the current fiscal year.

Shopify Company Profile

Shopify is the leading global commerce company that provides essential internet infrastructure for commerce, offering trusted tools to start, scale, market, and run a retail business of any size. Shopify makes commerce better for everyone with a platform and services that are engineered for speed, customization, reliability, and security, while delivering a better shopping experience for consumers online, in store, and everywhere in between. Shopify powers millions of businesses in more than 175 countries and is trusted by brands such as BarkBox, Vuori, BevMo, Carrier, JB Hi-Fi, Meta, ButcherBox, SKIMS, Supreme, and many more.

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