Shopify (NASDAQ:SHOP) Earns Buy Rating from Argus

Shopify (NASDAQ:SHOP) (TSE:SHOP)‘s stock had its “buy” rating reiterated by equities researchers at Argus in a research report issued to clients and investors on Thursday, Benzinga reports. They currently have a $180.00 target price on the software maker’s stock. Argus‘s price target suggests a potential upside of 24.28% from the company’s current price.

SHOP has been the topic of a number of other reports. Stifel Nicolaus set a $210.00 price objective on shares of Shopify and gave the company a “buy” rating in a report on Wednesday, October 14th. Oppenheimer restated an “outperform” rating and issued a $205.00 target price (up from $175.00) on shares of Shopify in a research note on Friday, October 23rd. Mizuho set a $180.00 target price on Shopify in a research note on Thursday, September 24th. Truist Financial set a $180.00 price target on Shopify and gave the stock a “buy” rating in a research report on Wednesday, August 5th. Finally, ATB Cormark Capital Markets downgraded Shopify from a “moderate buy” rating to a “hold” rating in a research note on Thursday, October 22nd. One equities research analyst has rated the stock with a Strong Buy rating, thirty-eight have assigned a Buy rating and ten have given a Hold rating to the company’s stock. According to data from MarketBeat.com, Shopify has an average rating of “Moderate Buy” and an average target price of $178.82.

Shopify Stock Performance

SHOP stock traded down $8.20 during trading on Thursday, reaching $144.83. The company had a trading volume of 1,160,623 shares, compared to its average volume of 10,250,409. The company has a market cap of $186.34 billion, a price-to-earnings ratio of 88.31, a price-to-earnings-growth ratio of 2.94 and a beta of 2.65. Shopify has a twelve month low of $94.00 and a twelve month high of $180.88. The company has a debt-to-equity ratio of 0.01, a quick ratio of 5.35 and a current ratio of 5.35. The firm has a 50-day simple moving average of $152.75 and a 200-day simple moving average of $130.11.

Shopify (NASDAQ:SHOP) (TSE:SHOP) last issued its quarterly earnings results on Tuesday, November 3rd. The software maker reported $0.49 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.33 by $0.16. The business had revenue of $3.74 billion for the quarter. Shopify had a net margin of 15.01% and a return on equity of 13.99%. The company’s revenue for the quarter was up 31.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.34 EPS. As a group, sell-side analysts expect that Shopify will post 1.46 earnings per share for the current year.

Institutional Trading of Shopify

Large investors have recently made changes to their positions in the business. Fortitude Family Office LLC purchased a new stake in Shopify in the third quarter valued at $29,000. MADDEN SECURITIES Corp purchased a new position in shares of Shopify during the 3rd quarter valued at about $30,000. Laurel Wealth Advisors LLC purchased a new position in shares of Shopify during the 3rd quarter valued at about $32,000. Graney & King LLC acquired a new position in shares of Shopify in the 1st quarter valued at about $27,000. Finally, Trellis Wealth Advisors LLC acquired a new position in shares of Shopify in the 3rd quarter valued at about $37,000. 69.27% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Shopify

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

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.