TD Securities Begins Coverage on Shopify (NASDAQ:SHOP)

Key Points

• TD Securities reaffirmed a hold rating on Shopify (NASDAQ:SHOP) and raised its price target from $130.00 to $156.00, indicating a potential upside of 3.11% from the current stock price.
• Other analysts have also given mixed ratings, with ATB Capital downgrading the stock while Goldman Sachs and Royal Bank of Canada increased their targets significantly, suggesting a wide range of market sentiment about Shopify's performance.
• Shopify reported $2.68 billion in revenue for the last quarter, exceeding estimates, and earnings per share of $0.35, which surpassed the consensus expectation of $0.29.

Research analysts at TD Securities started coverage on shares of Shopify (NASDAQ:SHOP - Get Free Report) TSE: SHOP in a research note issued to investors on Friday, MarketBeat reports. The brokerage set a "hold" rating and a $156.00 price target on the software maker's stock. TD Securities' price target indicates a potential downside of 1.41% from the company's current price.

Several other research firms have also issued reports on SHOP. Barclays increased their target price on shares of Shopify from $94.00 to $120.00 and gave the stock an "equal weight" rating in a research note on Thursday, August 7th. Atb Cap Markets lowered shares of Shopify from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, August 6th. ATB Capital lowered shares of Shopify to a "sector perform" rating in a research note on Thursday, August 7th. Citigroup raised their price target on shares of Shopify from $155.00 to $195.00 and gave the company a "buy" rating in a research note on Friday, August 8th. Finally, Mizuho raised their price target on shares of Shopify from $85.00 to $150.00 and gave the company a "neutral" rating in a research note on Thursday, August 7th. Twenty-two investment analysts have rated the stock with a Buy rating, twenty-one have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $150.44.

Shopify Trading Up 4.6%

SHOP traded up $6.93 during midday trading on Friday, hitting $158.23. 3,660,848 shares of the company were exchanged, compared to its average volume of 9,725,204. The company's 50 day simple moving average is $142.04 and its 200 day simple moving average is $116.66. Shopify has a 1-year low of $69.84 and a 1-year high of $160.96. The firm has a market capitalization of $205.65 billion, a price-to-earnings ratio of 88.40, a price-to-earnings-growth ratio of 7.09 and a beta of 2.72.

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 (EPS) for the quarter, topping the consensus estimate of $0.29 by $0.06. Shopify had a net margin of 23.42% and a return on equity of 12.30%. The business had revenue of $2.68 billion for the quarter, compared to analyst estimates of $2.55 billion. During the same period in the prior year, the company posted $0.26 EPS. The company's revenue for the quarter was up 31.1% on a year-over-year basis. On average, equities analysts anticipate that Shopify will post 1.12 EPS for the current year.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of SHOP. Vanguard Group Inc. increased its holdings in shares of Shopify by 2.8% during the 2nd quarter. Vanguard Group Inc. now owns 49,316,695 shares of the software maker's stock worth $5,688,053,000 after buying an additional 1,354,415 shares during the last quarter. Norges Bank acquired a new stake in shares of Shopify during the 2nd quarter worth approximately $1,794,952,000. Loomis Sayles & Co. L P increased its holdings in shares of Shopify by 1.3% during the 2nd quarter. Loomis Sayles & Co. L P now owns 14,622,787 shares of the software maker's stock worth $1,686,738,000 after buying an additional 191,824 shares during the last quarter. Jennison Associates LLC increased its holdings 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 worth $1,328,787,000 after buying an additional 6,238,829 shares during the last quarter. Finally, Geode Capital Management LLC increased its holdings in shares of Shopify by 19.9% during the 2nd quarter. Geode Capital Management LLC now owns 10,731,795 shares of the software maker's stock worth $1,247,007,000 after buying an additional 1,781,530 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.