Shopify (NASDAQ:SHOP) Cut to “Hold” at Zacks Research

Shopify (NASDAQ:SHOP) (TSE:SHOP) was downgraded by stock analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a note issued to investors on Wednesday,Zacks.com reports.

Other equities analysts have also recently issued research reports about the stock. Scotiabank raised their price target on shares of Shopify from $150.00 to $165.00 and gave the company a “sector perform” rating in a research report on Wednesday, November 5th. DA Davidson increased their price objective on Shopify from $185.00 to $195.00 and gave the company a “buy” rating in a research note on Wednesday, November 5th. Benchmark reissued a “buy” rating on shares of Shopify in a research note on Wednesday, November 5th. Citigroup upped their price target on Shopify from $155.00 to $195.00 and gave the stock a “buy” rating in a report on Friday, August 8th. Finally, National Bankshares lifted their price objective on Shopify from $180.00 to $200.00 and gave the company an “outperform” rating in a research note on Thursday, October 23rd. Twenty-two investment analysts have rated the stock with a Buy rating and twenty-four have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $163.89.

Shopify Price Performance

SHOP stock traded down $3.87 during trading on Wednesday, hitting $142.47. The stock had a trading volume of 1,097,768 shares, compared to its average volume of 9,646,630. The company’s 50-day moving average price is $156.70 and its two-hundred day moving average price is $131.72. Shopify has a twelve month low of $69.84 and a twelve month high of $182.19. The stock has a market capitalization of $185.16 billion, a P/E ratio of 105.53, a PEG ratio of 5.78 and a beta of 2.73.

Shopify (NASDAQ:SHOP) (TSE:SHOP) last posted its quarterly earnings results on Tuesday, November 4th. The software maker reported $0.27 EPS for the quarter, beating the consensus estimate of $0.24 by $0.03. The firm had revenue of $2.84 billion during the quarter, compared to analysts’ expectations of $2.75 billion. Shopify had a return on equity of 11.72% and a net margin of 16.65%. Shopify has set its Q4 2025 guidance at EPS. As a group, sell-side analysts expect that Shopify will post 1.12 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. boosted its position in Shopify by 1.2% during the third quarter. Vanguard Group Inc. now owns 49,926,824 shares of the software maker’s stock worth $7,417,517,000 after acquiring an additional 610,129 shares during the last quarter. Jennison Associates LLC lifted its stake in shares of Shopify by 64.3% during the 3rd quarter. Jennison Associates LLC now owns 18,923,431 shares of the software maker’s stock worth $2,812,211,000 after purchasing an additional 7,403,821 shares during the period. Norges Bank purchased a new position in shares of Shopify during the 2nd quarter worth $1,794,952,000. Loomis Sayles & Co. L P boosted its holdings in shares of Shopify by 1.3% during the second quarter. Loomis Sayles & Co. L P now owns 14,622,787 shares of the software maker’s stock worth $1,686,738,000 after purchasing an additional 191,824 shares during the last quarter. Finally, Geode Capital Management LLC grew its position in shares of Shopify by 19.9% in the second quarter. Geode Capital Management LLC now owns 10,731,795 shares of the software maker’s stock valued at $1,247,007,000 after purchasing an additional 1,781,530 shares during the period. Institutional investors and hedge funds own 69.27% of the company’s stock.

Shopify Company Profile

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.