Shopify (NASDAQ:SHOP) Stock Rating Reaffirmed as Buy by Argus

Shopify (NASDAQ:SHOP) (TSE:SHOP)‘s stock had its “buy” rating restated by stock analysts at Argus in a research report issued on Thursday, Benzinga reports. They currently have a $180.00 target price on the software maker’s stock. Argus‘s target price would indicate a potential upside of 24.28% from the stock’s previous close.

SHOP has been the topic of several other research reports. Citizens Jmp raised their price target on shares of Shopify from $150.00 to $185.00 and gave the company a “market outperform” rating in a research report on Thursday, August 6th. National Bank Financial increased their target price on shares of Shopify from $180.00 to $185.00 and gave the stock an “outperform” rating in a research note on Wednesday. KeyCorp increased their target price on shares of Shopify from $180.00 to $185.00 and gave the stock an “overweight” rating in a research note on Monday. Cantor Fitzgerald dropped their target price on Shopify from $158.00 to $150.00 and set a “neutral” rating on the stock in a research report on Wednesday. Finally, Rosenblatt Securities cut their price target on Shopify from $186.00 to $180.00 and set a “buy” rating for the company in a research note on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, thirty-eight have issued a Buy rating and ten have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $178.82.

Shopify Stock Performance

Shares of NASDAQ SHOP traded down $8.20 during midday trading on Thursday, reaching $144.83. 1,160,623 shares of the stock were exchanged, compared to its average volume of 10,250,409. The company has a quick ratio of 5.35, a current ratio of 5.35 and a debt-to-equity ratio of 0.01. The firm has a market cap of $186.34 billion, a price-to-earnings ratio of 88.31, a PEG ratio of 2.94 and a beta of 2.65. The firm has a 50-day simple moving average of $152.75 and a two-hundred day simple moving average of $130.11. Shopify has a twelve month low of $94.00 and a twelve month high of $180.88.

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

Institutional Trading of Shopify

Institutional investors have recently modified their holdings of the stock. Gen Wealth Partners Inc boosted its holdings in Shopify by 35.6% in the 3rd quarter. Gen Wealth Partners Inc now owns 8,292 shares of the software maker’s stock worth $1,230,000 after buying an additional 2,178 shares during the last quarter. Welch & Forbes LLC increased its stake in Shopify by 4.5% during the 3rd quarter. Welch & Forbes LLC now owns 166,176 shares of the software maker’s stock worth $24,644,000 after buying an additional 7,089 shares in the last quarter. Vestor Capital LLC acquired a new position in shares of Shopify during the third quarter valued at approximately $548,000. Kestra Investment Management LLC raised its holdings in shares of Shopify by 18.6% during the third quarter. Kestra Investment Management LLC now owns 2,119 shares of the software maker’s stock valued at $314,000 after acquiring an additional 333 shares during the last quarter. Finally, AlphaCore Capital LLC raised its holdings in shares of Shopify by 27.3% during the third quarter. AlphaCore Capital LLC now owns 7,195 shares of the software maker’s stock valued at $1,067,000 after acquiring an additional 1,542 shares during the last quarter. Institutional investors and hedge funds own 69.27% of the company’s stock.

Shopify News Summary

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Shopify reported third-quarter revenue of about $3.7 billion, up 32% year over year, and adjusted earnings of $0.49 per share, above consensus. GMV rose 30% to roughly $119 billion. Free cash flow increased 61% to $816 million, a 22% margin, while operating income grew 66%. Shopify: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Management highlighted rising AI-driven shopping activity and expanding payments use; Shop Pay GMV reportedly climbed 50%. These trends could add to Shopify’s growth if they translate into sustained merchant sales. Q3 Earnings Call Highlights
• Positive Sentiment: Analyst support was constructive: RBC reaffirmed Outperform with a $200 target, while National Bank Financial raised its target to $185 and maintained Outperform. RBC rating coverage
• Neutral Sentiment: Analyst opinions were not uniformly bullish. UBS raised its target to $160 but kept a Neutral rating; Cantor Fitzgerald lowered its target to $150 and also rated the shares Neutral. UBS price-target coverage
• Negative Sentiment: The key earnings concern was that GMV of about $119 billion came in slightly below lofty expectations, with some reports also flagging softer subscription revenue and a revenue miss. That helps explain why strong year-over-year growth did not prevent an initial post-report sell-off. Shopify falls after Q3 results
• Negative Sentiment: Shopify’s premium valuation leaves little room for execution setbacks. Investors will also watch whether the company can sustain growth and cash generation through the demanding holiday quarter. Cash growth and holiday-quarter test

About Shopify

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.