Shopify (NASDAQ:SHOP) Trading Down 6.1% – Here’s What Happened

Shopify Inc. (NASDAQ:SHOP) (TSE:SHOP)’s share price fell 6.1% on Tuesday . The stock traded as low as $135.52 and last traded at $136.29. 1,433,794 shares changed hands during mid-day trading, a decline of 86% from the average daily volume of 10,347,278 shares. The stock had previously closed at $145.09.

Analyst Upgrades and Downgrades

SHOP has been the topic of a number of research analyst reports. BMO Capital Markets set a $165.00 target price on Shopify and gave the company an “outperform” rating in a research report on Thursday, August 6th. Rosenblatt Securities initiated coverage on Shopify in a report on Thursday, August 20th. They set a “buy” rating and a $175.00 price target for the company. Wedbush raised their price objective on Shopify from $155.00 to $176.00 and gave the stock an “outperform” rating in a research report on Thursday, August 6th. Rothschild & Co Redburn set a $130.00 target price on shares of Shopify and gave the company a “neutral” rating in a research report on Tuesday, July 21st. Finally, UBS Group reaffirmed a “neutral” rating and issued a $145.00 target price (up from $130.00) on shares of Shopify in a research report on Thursday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating and ten have assigned a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $171.65.

Shopify Stock Down 7.5%

The business has a 50 day simple moving average of $134.82 and a 200 day simple moving average of $122.99. The company has a market capitalization of $172.59 billion, a price-to-earnings ratio of 90.64, a PEG ratio of 2.96 and a beta of 2.61. The company has a debt-to-equity ratio of 0.01, a current ratio of 5.35 and a quick ratio of 5.35.

Shopify (NASDAQ:SHOP) (TSE:SHOP) last issued its quarterly earnings data on Wednesday, August 5th. The software maker reported $0.42 earnings per share for the quarter, beating analysts’ consensus estimates of $0.40 by $0.02. The business had revenue of $3.58 billion during the quarter. Shopify had a return on equity of 12.58% and a net margin of 14.53%.The company’s quarterly revenue was up 33.7% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.69 earnings per share. As a group, equities analysts predict that Shopify Inc. will post 1.45 earnings per share for the current fiscal year.

Institutional Trading of Shopify

Institutional investors and hedge funds have recently bought and sold shares of the business. Norges Bank acquired a new stake in shares of Shopify during the fourth quarter worth about $2,611,797,000. Invesco Ltd. increased its stake in Shopify by 9.8% during the 4th quarter. Invesco Ltd. now owns 14,026,193 shares of the software maker’s stock worth $2,257,796,000 after buying an additional 1,252,074 shares during the period. Geode Capital Management LLC lifted its holdings in Shopify by 6.2% during the 4th quarter. Geode Capital Management LLC now owns 12,601,476 shares of the software maker’s stock worth $2,043,365,000 after buying an additional 737,892 shares in the last quarter. Mackenzie Financial Corp boosted its position in Shopify by 9.1% in the 4th quarter. Mackenzie Financial Corp now owns 9,961,097 shares of the software maker’s stock valued at $1,627,352,000 after buying an additional 827,643 shares during the period. Finally, Sands Capital Management LLC boosted its position in Shopify by 37.0% in the 4th quarter. Sands Capital Management LLC now owns 9,506,036 shares of the software maker’s stock valued at $1,530,187,000 after buying an additional 2,568,765 shares during the period. 69.27% of the stock is currently owned by hedge funds and other institutional investors.

About Shopify

Shopify is a Canadian commerce technology company that provides a cloud-based platform for businesses to create, manage and scale online and physical retail stores. Its core offering is a software-as-a-service e-commerce platform that enables merchants to build customizable storefronts, manage product catalogs, process orders, and handle inventory. Shopify also supports omnichannel selling through integrated point-of-sale (POS) systems for in-person transactions.

Beyond storefront software, Shopify offers a range of merchant services and tools designed to simplify commerce operations.