Shopify Inc. (SHOP) Downgraded to Equal Weight at Morgan Stanley
Shopify Inc. (NYSE:SHOP) was downgraded by analysts at Morgan Stanley from an “overweight” rating to an “equal weight” rating in a research note issued on Wednesday. They presently have a $47.00 price objective on the stock, up from their prior price objective of $37.00. Morgan Stanley’s price target points to a potential upside of 7.13% from the company’s previous close. The analysts noted that the move was a valuation call.
Several other brokerages have also recently issued reports on SHOP. KeyCorp restated a “buy” rating and set a $37.00 target price on shares of Shopify in a research report on Wednesday, June 29th. Monness Crespi & Hardt increased their price objective on shares of Shopify from $35.00 to $39.00 and gave the stock a “buy” rating in a research report on Wednesday, August 3rd. Royal Bank Of Canada reissued an “outperform” rating and issued a $37.00 price objective on shares of Shopify in a research report on Wednesday, July 27th. RBC Capital Markets reissued an “outperform” rating and issued a $42.00 price objective (up from $37.00) on shares of Shopify in a research report on Thursday, August 4th. Finally, Citigroup Inc. reissued a “hold” rating and issued a $40.00 price objective on shares of Shopify in a research report on Thursday, August 4th. One research analyst has rated the stock with a sell rating, five have issued a hold rating, fourteen have given a buy rating and one has assigned a strong buy rating to the company’s stock. The stock presently has an average rating of “Buy” and a consensus price target of $40.20.
Shares of Shopify (NYSE:SHOP) traded down 2.14% on Wednesday, hitting $42.93. The stock had a trading volume of 182,057 shares. Shopify has a 12 month low of $18.48 and a 12 month high of $45.20. The company has a 50 day moving average price of $41.47 and a 200-day moving average price of $32.88. The stock’s market cap is $3.51 billion.
Shopify (NYSE:SHOP) last announced its earnings results on Wednesday, August 3rd. The company reported ($0.04) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.08) by $0.04. The firm had revenue of $86.36 million for the quarter, compared to analysts’ expectations of $80.62 million. Shopify had a negative net margin of 10.03% and a negative return on equity of 14.67%. The business’s revenue was up 92.9% compared to the same quarter last year. During the same period in the prior year, the company earned ($0.03) EPS. On average, equities research analysts anticipate that Shopify will post ($0.15) earnings per share for the current year.
A number of large investors have recently made changes to their positions in the stock. FMR LLC increased its stake in shares of Shopify by 32.9% in the second quarter. FMR LLC now owns 9,586,883 shares of the company’s stock valued at $294,892,000 after buying an additional 2,370,708 shares during the period. Insight Holdings Group LLC increased its stake in shares of Shopify by 939.0% in the second quarter. Insight Holdings Group LLC now owns 2,444,839 shares of the company’s stock valued at $75,203,000 after buying an additional 2,209,539 shares during the period. Abdiel Capital Advisors LP increased its stake in shares of Shopify by 43.5% in the second quarter. Abdiel Capital Advisors LP now owns 2,407,342 shares of the company’s stock valued at $74,050,000 after buying an additional 730,195 shares during the period. Whale Rock Capital Management LLC increased its stake in shares of Shopify by 130.3% in the second quarter. Whale Rock Capital Management LLC now owns 989,538 shares of the company’s stock valued at $30,438,000 after buying an additional 559,906 shares during the period. Finally, Canada Pension Plan Investment Board purchased a new stake in shares of Shopify during the second quarter valued at $15,598,000. Institutional investors own 58.80% of the company’s stock.
Shopify Inc is a provider of cloud-based, multi-channel commerce platform designed for small and medium-sized businesses. The Company’s software is used by merchants to run their business across all of their sales channels, including Web and mobile storefronts, social media storefronts, such as Facebook, Twitter and Pinterest, and physical retail locations.
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