Shopify (NYSE:SHOP) Shares Gap Up After Better-Than-Expected Earnings

Shopify Inc. (NYSE:SHOP) (TSE:SHOP) shares gapped up prior to trading on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $89.99, but opened at $107.52. Shopify shares last traded at $109.84, with a volume of 16,235,688 shares.

The software maker reported $0.27 EPS for the quarter, beating the consensus estimate of $0.18 by $0.09. The company had revenue of $2.16 billion for the quarter, compared to the consensus estimate of $2.11 billion. Shopify had a net margin of 16.84% and a return on equity of 11.94%.

Wall Street Analyst Weigh In

A number of research firms have commented on SHOP. Scotiabank lifted their target price on Shopify from $75.00 to $80.00 and gave the stock a “sector perform” rating in a report on Thursday, October 24th. Citigroup boosted their target price on Shopify from $90.00 to $103.00 and gave the stock a “buy” rating in a research report on Monday, September 30th. Argus raised shares of Shopify to a “strong-buy” rating in a report on Thursday, August 8th. Deutsche Bank Aktiengesellschaft boosted their price objective on shares of Shopify from $80.00 to $85.00 and gave the company a “buy” rating in a report on Thursday, August 8th. Finally, Wedbush restated a “neutral” rating and set a $115.00 price objective (up previously from $72.00) on shares of Shopify in a research report on Tuesday. One research analyst has rated the stock with a sell rating, sixteen have given a hold rating, twenty-four have given a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $94.95.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Oliver Lagore Vanvalin Investment Group grew its position in Shopify by 100.0% in the second quarter. Oliver Lagore Vanvalin Investment Group now owns 400 shares of the software maker’s stock worth $26,000 after acquiring an additional 200 shares in the last quarter. Cultivar Capital Inc. bought a new position in shares of Shopify during the 2nd quarter valued at approximately $33,000. Hazlett Burt & Watson Inc. bought a new position in shares of Shopify during the 2nd quarter valued at approximately $33,000. Brooklyn Investment Group bought a new stake in Shopify in the third quarter worth $33,000. Finally, Rosenberg Matthew Hamilton boosted its stake in Shopify by 41.3% during the third quarter. Rosenberg Matthew Hamilton now owns 455 shares of the software maker’s stock worth $36,000 after buying an additional 133 shares during the period. 69.27% of the stock is currently owned by institutional investors.

Shopify Price Performance

The stock’s 50-day simple moving average is $79.47 and its two-hundred day simple moving average is $70.18. The firm has a market cap of $148.56 billion, a P/E ratio of 107.60, a PEG ratio of 3.64 and a beta of 2.36. The company has a debt-to-equity ratio of 0.10, a current ratio of 7.32 and a quick ratio of 7.32.

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.