Shopify (NASDAQ:SHOP) Stock Price Up 6.4% – Should You Buy?

Shopify Inc. (NASDAQ:SHOP) (TSE:SHOP)’s share price was up 6.4% on Wednesday . The company traded as high as $130.25 and last traded at $129.65. Approximately 11,326,305 shares changed hands during trading, a decline of 14% from the average daily volume of 13,173,888 shares. The stock had previously closed at $121.87.

Wall Street Analysts Forecast Growth

SHOP has been the subject of several analyst reports. Oppenheimer restated an “outperform” rating on shares of Shopify in a research note on Monday, December 1st. DZ Bank upgraded shares of Shopify from a “hold” rating to a “strong-buy” rating in a research report on Monday, February 16th. Zacks Research downgraded shares of Shopify from a “strong-buy” rating to a “hold” rating in a report on Wednesday, November 12th. KeyCorp reiterated an “overweight” rating and set a $160.00 price target on shares of Shopify in a research note on Wednesday, February 11th. Finally, BNP Paribas Exane started coverage on shares of Shopify in a research report on Monday, November 24th. They issued a “neutral” rating for the company. Two investment analysts have rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating and ten have assigned a Hold rating to the company. According to MarketBeat.com, Shopify presently has an average rating of “Moderate Buy” and a consensus price target of $162.64.

Shopify Price Performance

The company has a market cap of $168.78 billion, a PE ratio of 139.41, a P/E/G ratio of 4.35 and a beta of 2.83. The firm has a 50-day simple moving average of $139.60 and a two-hundred day simple moving average of $149.32.

Institutional Investors Weigh In On Shopify

Hedge funds have recently modified their holdings of the company. Vanguard Group Inc. raised its position in shares of Shopify by 1.5% in the fourth quarter. Vanguard Group Inc. now owns 50,670,627 shares of the software maker’s stock valued at $8,158,643,000 after buying an additional 743,803 shares during the last quarter. Jennison Associates LLC grew its stake in Shopify by 64.3% in the 3rd quarter. Jennison Associates LLC now owns 18,923,431 shares of the software maker’s stock worth $2,812,211,000 after acquiring an additional 7,403,821 shares during the period. Norges Bank purchased a new stake in Shopify in the 4th quarter worth approximately $2,611,797,000. Loomis Sayles & Co. L P raised its holdings in Shopify by 1.3% in the 2nd quarter. Loomis Sayles & Co. L P now owns 14,622,787 shares of the software maker’s stock valued at $1,686,738,000 after acquiring an additional 191,824 shares during the last quarter. Finally, Invesco Ltd. boosted its holdings in shares of Shopify by 9.8% during the fourth quarter. Invesco Ltd. now owns 14,026,193 shares of the software maker’s stock worth $2,257,796,000 after purchasing an additional 1,252,074 shares during the last quarter. 69.27% of the stock is owned by institutional investors and hedge funds.

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.