Shopify Inc. $SHOP Stock: Capital Investment Services of America Inc. Grows Position

Capital Investment Services of America Inc. increased its holdings in shares of Shopify Inc. (NASDAQ:SHOP) (TSE:SHOP) by 4.3% in the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 107,756 shares of the software maker’s stock after purchasing an additional 4,442 shares during the period. Capital Investment Services of America Inc.’s holdings in Shopify were worth $15,980,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently bought and sold shares of the business. The Manufacturers Life Insurance Company raised its holdings in shares of Shopify by 8.5% in the first quarter. The Manufacturers Life Insurance Company now owns 8,418,903 shares of the software maker’s stock valued at $998,137,000 after buying an additional 660,198 shares during the last quarter. Swiss National Bank raised its stake in Shopify by 27.0% during the 1st quarter. Swiss National Bank now owns 4,115,300 shares of the software maker’s stock valued at $487,580,000 after acquiring an additional 876,100 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. raised its stake in Shopify by 4.1% during 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 acquiring an additional 145,500 shares during the last quarter. Bank of New York Mellon Corp raised 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 during the last quarter. Finally, Amova Asset Management Americas Inc. lifted its position 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 worth $410,219,000 after acquiring an additional 165,080 shares during the period. 69.27% of the stock is owned by hedge funds and other institutional investors.

Shopify Stock Performance

Shares of SHOP stock opened at $153.03 on Thursday. The company has a market cap of $196.90 billion, a price-to-earnings ratio of 93.31, a price-to-earnings-growth ratio of 2.94 and a beta of 2.65. The stock has a 50 day simple moving average of $152.75 and a 200-day simple moving average of $130.11. Shopify Inc. has a 12-month low of $94.00 and a 12-month high of $180.88. The company has a current ratio of 5.35, a quick ratio of 5.35 and a debt-to-equity ratio of 0.01.

Shopify (NASDAQ:SHOP) (TSE:SHOP) last posted its quarterly earnings results on Tuesday, November 3rd. The software maker reported $0.49 EPS for the quarter, beating the consensus estimate of $0.33 by $0.16. Shopify had a return on equity of 13.99% and a net margin of 15.01%. The business had revenue of $3.74 billion during the quarter. During the same period in the prior year, the business earned $0.34 earnings per share. The firm’s quarterly revenue was up 31.6% compared to the same quarter last year. On average, equities analysts forecast that Shopify Inc. will post 1.46 EPS for the current year.

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on the company. UBS Group boosted their target price on Shopify from $145.00 to $160.00 and gave the company a “neutral” rating in a report on Wednesday. Wedbush reiterated an “outperform” rating and issued a $176.00 price objective on shares of Shopify in a research report on Wednesday. Canaccord Genuity Group set a $180.00 price objective on shares of Shopify and gave the company a “buy” rating in a research note on Wednesday, August 5th. Weiss Ratings cut shares of Shopify from a “hold (c+)” rating to a “hold (c)” rating in a research note on Friday, October 30th. Finally, BTIG Research began coverage on shares of Shopify in a research report on Friday, July 10th. They set a “buy” rating for the company. One analyst has rated the stock with a Strong Buy rating, thirty-seven have issued a Buy rating and ten have issued a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $178.79.

Key Shopify News

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Shopify reported Q3 revenue of $3.74 billion, up 31.6% year over year, and earnings per share of $0.49, above consensus. Free cash flow rose 61% to $816 million, while operating income increased 66%. Read More.
• Positive Sentiment: Analyst actions were broadly supportive: National Bank Financial raised its target to $185 and reaffirmed “outperform,” while RBC maintained “outperform” with a $200 target. UBS raised its target to $160 but kept a neutral rating. Read More. · Read More. · Read More.
• Positive Sentiment: ARK Invest reportedly bought $12.5 million of Shopify shares during the post-earnings weakness, providing a vote of confidence from a prominent growth investor. Read More.
• Neutral Sentiment: Shopify highlighted growing AI-driven shopping activity, expanding payments penetration and rising Shop Pay usage. These initiatives could support future growth, though their financial contribution remains to be proven. Read More.
• Negative Sentiment: The quarter fell short of expectations on gross merchandise volume (about $119.1 billion) and subscription revenue; some reports also cited a modest revenue miss. The shortfalls triggered the recent sell-off and keep expectations for holiday-quarter execution high. Read More.
• Negative Sentiment: Valuation remains a risk: Shopify trades at a rich earnings multiple, leaving the stock vulnerable if growth or margins disappoint. Cantor Fitzgerald cut its target to $150 and retained a neutral rating. Read More.

Shopify Company Profile

Shopify Inc is a commerce technology company that provides tools for businesses of various sizes to start, operate and grow online and in physical retail environments. Its platform supports online storefronts, product and inventory management, order processing, marketing, analytics and customer engagement.

The company offers subscription-based plans and merchant solutions, including Shopify Payments, Shopify POS, Shopify Capital and tools for shipping, checkout and fulfillment. Shopify also supports sales through multiple channels, such as merchants’ own websites, mobile devices, social media and third-party marketplaces.

Shopify was founded in 2006 by Tobias Lütke, Daniel Weinand and Scott Lake after the founders developed an online store for snowboarding equipment.