Shopify (TSE:SHOP) Stock Price Up 21.5% - Still a Buy?

Key Points

• Shopify's stock surged by 21.5%, reaching a high of C$214.90, with over 4 million shares traded, significantly above its average volume.
• ATB Capital raised its target price for Shopify shares from C$155.00 to C$160.00, maintaining an "outperform" rating.
• Insider transactions included significant sales, with Director Robert Gerard Ashe and Senior Officer Jessica Hertz selling a combined total of over C$2 million in shares recently.

Shares of Shopify Inc. (TSE:SHOP - Get Free Report) shot up 21.5% during mid-day trading on Wednesday . The company traded as high as C$214.90 and last traded at C$212.82. 4,168,139 shares were traded during trading, an increase of 94% from the average session volume of 2,143,358 shares. The stock had previously closed at C$175.16.

Analysts Set New Price Targets

A number of brokerages have issued reports on SHOP. Royal Bank Of Canada cut shares of Shopify from an "outperform" rating to a "sector perform" rating and lifted their target price for the stock from C$160.00 to C$220.00 in a research report on Thursday. ATB Capital increased their price target on Shopify from C$155.00 to C$160.00 and gave the company an "outperform" rating in a report on Friday, May 9th.

Shopify Price Performance

The stock has a 50-day simple moving average of C$159.48 and a 200 day simple moving average of C$150.41. The stock has a market capitalization of C$193.30 billion, a price-to-earnings ratio of 93.97, a price-to-earnings-growth ratio of 0.87 and a beta of 2.36. The company has a current ratio of 3.71, a quick ratio of 5.74 and a debt-to-equity ratio of 9.74.

Insider Buying and Selling

In other news, Senior Officer Jessica Hertz sold 10,255 shares of the company's stock in a transaction dated Wednesday, May 14th. The shares were sold at an average price of C$156.30, for a total transaction of C$1,602,815.48. Also, Director Robert Gerard Ashe sold 2,800 shares of the stock in a transaction dated Monday, June 2nd. The shares were sold at an average price of C$145.16, for a total transaction of C$406,445.30. Over the last 90 days, insiders have sold 43,343 shares of company stock valued at $6,654,837. 0.18% of the stock is owned by corporate insiders.

About Shopify

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.