Shopify (NASDAQ:SHOP) Trading Down 4.4% – Time to Sell?

Shopify Inc. (NASDAQ:SHOP) (TSE:SHOP)’s share price fell 4.4% during mid-day trading on Wednesday . The stock traded as low as $94.56 and last traded at $95.40. 20,110,881 shares were traded during mid-day trading, an increase of 76% from the average session volume of 11,443,391 shares. The stock had previously closed at $99.84.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on SHOP. Canaccord Genuity Group reduced their price objective on Shopify from $165.00 to $145.00 and set a “buy” rating for the company in a research note on Wednesday, May 6th. Oppenheimer reissued an “outperform” rating and issued a $175.00 price objective on shares of Shopify in a research note on Wednesday, May 6th. Stifel Nicolaus set a $115.00 target price on Shopify and gave the stock a “hold” rating in a research report on Wednesday, February 11th. TD Securities raised Shopify from a “hold” rating to a “buy” rating and set a $159.00 target price on the stock in a research report on Thursday, February 12th. Finally, Citizens Jmp dropped their target price on Shopify from $160.00 to $150.00 and set a “market outperform” rating on the stock in a research report on Wednesday, May 6th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-one have given a Buy rating and ten have issued a Hold rating to the company. According to data from MarketBeat, Shopify currently has an average rating of “Moderate Buy” and an average price target of $158.42.

Shopify Trading Up 2.9%

The firm has a market cap of $130.13 billion, a price-to-earnings ratio of 99.29, a price-to-earnings-growth ratio of 2.67 and a beta of 2.64. The stock has a fifty day moving average price of $119.70 and a 200 day moving average price of $138.67.

Shopify (NASDAQ:SHOP) (TSE:SHOP) last issued its quarterly earnings data on Tuesday, May 5th. The software maker reported $999.00 EPS for the quarter, beating analysts’ consensus estimates of $0.22 by $998.78. The business had revenue of $3.17 billion for the quarter, compared to analyst estimates of $3.08 billion. Shopify had a return on equity of 12.07% and a net margin of 10.77%. On average, sell-side analysts forecast that Shopify Inc. will post 1.36 EPS for the current year.

Institutional Trading of Shopify

Several hedge funds have recently added to or reduced their stakes in SHOP. Norges Bank bought a new stake in Shopify during the 4th quarter valued at approximately $2,611,797,000. Jennison Associates LLC boosted its stake in Shopify by 64.3% during the 3rd quarter. Jennison Associates LLC now owns 18,923,431 shares of the software maker’s stock valued at $2,812,211,000 after purchasing an additional 7,403,821 shares during the period. Sands Capital Management LLC boosted its stake in Shopify by 37.0% during the 4th quarter. Sands Capital Management LLC now owns 9,506,036 shares of the software maker’s stock valued at $1,530,187,000 after purchasing an additional 2,568,765 shares during the period. Invesco Ltd. boosted its stake in Shopify by 9.8% during the 4th quarter. Invesco Ltd. now owns 14,026,193 shares of the software maker’s stock valued at $2,257,796,000 after purchasing an additional 1,252,074 shares during the period. Finally, Thrivent Financial for Lutherans boosted its stake in Shopify by 7,207.2% during the 4th quarter. Thrivent Financial for Lutherans now owns 1,148,259 shares of the software maker’s stock valued at $184,883,000 after purchasing an additional 1,132,545 shares during the period. Institutional investors own 69.27% of the company’s stock.

Shopify Company Profile

Shopify is a Canadian commerce technology company that provides a cloud-based platform for businesses to create, manage and scale online and physical retail stores. Its core offering is a software-as-a-service e-commerce platform that enables merchants to build customizable storefronts, manage product catalogs, process orders, and handle inventory. Shopify also supports omnichannel selling through integrated point-of-sale (POS) systems for in-person transactions.

Beyond storefront software, Shopify offers a range of merchant services and tools designed to simplify commerce operations.