Shopify’s (SHOP) “Outperform” Rating Reiterated at Wedbush

Wedbush reissued their outperform rating on shares of Shopify (NASDAQ:SHOP) (TSE:SHOP) in a research report released on Wednesday morning,Benzinga reports. The firm currently has a $176.00 target price on the software maker’s stock.

SHOP has been the subject of several other research reports. Rosenblatt Securities decreased their price objective on Shopify from $186.00 to $180.00 and set a “buy” rating for the company in a report on Wednesday. Cantor Fitzgerald cut their target price on Shopify from $158.00 to $150.00 and set a “neutral” rating on the stock in a report on Wednesday. Truist Financial set a $180.00 price target on shares of Shopify and gave the company a “buy” rating in a research report on Wednesday, August 5th. DZ Bank downgraded shares of Shopify from a “strong-buy” rating to a “hold” rating in a research report on Friday, August 7th. Finally, BMO Capital Markets set a $165.00 price target on shares of Shopify and gave the company an “outperform” rating in a research note on Thursday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-eight have assigned a Buy rating and ten have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $178.82.

Shopify Stock Up 3.6%

Shares of SHOP traded up $5.16 during trading hours on Wednesday, hitting $148.91. The stock had a trading volume of 7,972,804 shares, compared to its average volume of 8,231,345. The company has a debt-to-equity ratio of 0.01, a current ratio of 5.35 and a quick ratio of 5.35. The firm has a 50 day simple moving average of $152.51 and a 200-day simple moving average of $130.07. The firm has a market capitalization of $191.59 billion, a P/E ratio of 90.80, a price-to-earnings-growth ratio of 3.23 and a beta of 2.65. Shopify has a 1-year low of $94.00 and a 1-year high of $180.88.

Shopify (NASDAQ:SHOP) (TSE:SHOP) last posted its quarterly earnings results on Tuesday, November 3rd. The software maker reported $0.49 earnings per share for the quarter, topping analysts’ consensus estimates of $0.33 by $0.16. Shopify had a return on equity of 12.58% and a net margin of 14.53%. The business had revenue of $3.74 billion for the quarter. During the same period last year, the company posted $0.34 earnings per share. The firm’s quarterly revenue was up 31.6% compared to the same quarter last year. Sell-side analysts predict that Shopify will post 1.47 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the stock. The Manufacturers Life Insurance Company grew its holdings in Shopify by 8.5% during the first quarter. The Manufacturers Life Insurance Company now owns 8,418,903 shares of the software maker’s stock worth $998,137,000 after buying an additional 660,198 shares in the last quarter. Swiss National Bank raised its position in Shopify by 27.0% in the 1st quarter. Swiss National Bank now owns 4,115,300 shares of the software maker’s stock valued at $487,580,000 after buying an additional 876,100 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. raised its position in Shopify by 4.1% in the 1st quarter. Sumitomo Mitsui Trust Group Inc. now owns 3,678,602 shares of the software maker’s stock valued at $436,356,000 after buying an additional 145,500 shares during the last quarter. Bank of New York Mellon Corp lifted its stake in Shopify by 4.8% during the 1st quarter. Bank of New York Mellon Corp now owns 3,495,964 shares of the software maker’s stock valued at $414,691,000 after acquiring an additional 159,873 shares in the last quarter. Finally, Amova Asset Management Americas Inc. lifted its stake in Shopify by 5.0% during the 1st quarter. Amova Asset Management Americas Inc. now owns 3,458,265 shares of the software maker’s stock valued at $410,219,000 after acquiring an additional 165,080 shares in the last quarter. Institutional investors own 69.27% of the company’s stock.

Key Headlines Impacting Shopify

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Shopify reported 32% year-over-year revenue growth to about $3.7 billion, GMV growth of 30% to $119 billion, and a 22% free-cash-flow margin. Coverage also highlighted a forecast for another quarter of 30%-plus growth as the holiday shopping season approaches. Article Article
• Positive Sentiment: Several analysts remain constructive: Morgan Stanley reiterated a buy call after the pullback, Argus reaffirmed its buy rating with a $180 target, and Wedbush and RBC issued Outperform ratings. UBS raised its target to $160, though it kept a Neutral rating. Article Article
• Positive Sentiment: Traders bought a large volume of Shopify call options, suggesting some market participants are positioning for a rebound, though options activity is not a guarantee of future performance. Article
• Negative Sentiment: One report says Shopify’s results included a slight miss, which may be overshadowing its growth and prompting investors to reassess its premium valuation. Article
• Negative Sentiment: Rosenblatt lowered its expectations for the stock, while Cantor Fitzgerald issued a pessimistic forecast, adding to near-term analyst caution. Article Article

Shopify Company Profile

Shopify is a commerce technology company that provides tools for businesses to create and operate online stores. Its platform supports activities such as product management, order processing, payments, shipping, marketing and customer engagement.

Shopify also offers point-of-sale tools for merchants selling in person, connecting retail operations with online sales. Its services are used by businesses of varying sizes and are available to merchants in countries around the world.

Founded in 2006, Shopify is headquartered in Ottawa, Canada.