Shopify (NASDAQ:SHOP) Upgraded to Strong-Buy at Sanford C. Bernstein

Sanford C. Bernstein upgraded shares of Shopify (NASDAQ:SHOP) (TSE:SHOP) to a strong-buy rating in a research note published on Thursday morning,Zacks reports.

Several other research firms also recently weighed in on SHOP. Canaccord Genuity Group set a $180.00 target price on Shopify and gave the stock a “buy” rating in a research report on Wednesday, August 5th. Rosenblatt Securities initiated coverage on shares of Shopify in a research note on Thursday, August 20th. They set a “buy” rating and a $175.00 price objective for the company. Wells Fargo & Company reiterated an “overweight” rating and set a $180.00 price objective (up from $144.00) on shares of Shopify in a report on Friday, August 7th. Citizens Jmp boosted their target price on shares of Shopify from $150.00 to $185.00 and gave the company a “market outperform” rating in a report on Thursday, August 6th. Finally, Stifel Nicolaus set a $150.00 price target on shares of Shopify and gave the stock a “buy” rating in a research report on Thursday, July 9th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-five have given a Buy rating and ten have assigned a Hold rating to the company’s stock. According to data from MarketBeat, Shopify currently has a consensus rating of “Moderate Buy” and an average target price of $171.34.

Shopify Stock Up 1.7%

Shares of NASDAQ SHOP opened at $128.79 on Thursday. The firm has a market cap of $165.71 billion, a P/E ratio of 87.02, a price-to-earnings-growth ratio of 2.58 and a beta of 2.61. The company has a debt-to-equity ratio of 0.01, a quick ratio of 5.35 and a current ratio of 5.35. Shopify has a 1 year low of $94.00 and a 1 year high of $182.19. The firm’s 50 day moving average price is $135.65 and its 200 day moving average price is $123.14.

Shopify (NASDAQ:SHOP) (TSE:SHOP) last issued its quarterly earnings results on Wednesday, August 5th. The software maker reported $0.42 earnings per share for the quarter, topping analysts’ consensus estimates of $0.40 by $0.02. Shopify had a return on equity of 12.58% and a net margin of 14.53%.The company had revenue of $3.58 billion for the quarter. During the same period in the prior year, the company earned $0.69 EPS. The company’s revenue for the quarter was up 33.7% compared to the same quarter last year. As a group, sell-side analysts anticipate that Shopify will post 1.45 earnings per share for the current year.

Institutional Trading of Shopify

Institutional investors have recently modified their holdings of the company. Norges Bank acquired a new position in Shopify during the fourth quarter valued at approximately $2,611,797,000. Invesco Ltd. raised its stake in shares of Shopify by 9.8% in the 4th quarter. Invesco Ltd. now owns 14,026,193 shares of the software maker’s stock valued at $2,257,796,000 after acquiring an additional 1,252,074 shares during the period. Geode Capital Management LLC raised its stake in shares of Shopify by 6.2% in the 4th quarter. Geode Capital Management LLC now owns 12,601,476 shares of the software maker’s stock valued at $2,043,365,000 after acquiring an additional 737,892 shares during the period. Mackenzie Financial Corp lifted its holdings in shares of Shopify by 9.1% during the 4th quarter. Mackenzie Financial Corp now owns 9,961,097 shares of the software maker’s stock valued at $1,627,352,000 after acquiring an additional 827,643 shares in the last quarter. Finally, Sands Capital Management LLC lifted its holdings in shares of 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 acquiring an additional 2,568,765 shares in the last quarter. Hedge funds and other institutional investors own 69.27% of the company’s stock.

More Shopify News

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Bernstein starts coverage at Outperform: Bernstein initiated coverage with a $160 price target, implying more than 26% upside from Thursday’s close. The firm said Shopify is well positioned to lead innovation in commerce, supporting the stock’s premarket strength. Shopify Shares Rise 2.5% as Bernstein Starts Coverage at Outperform
• Positive Sentiment: Operating leverage and AI-commerce potential: StoneX highlighted that Shopify’s headcount has remained flat for more than eight quarters while revenue grew roughly 34%, suggesting improving efficiency. Analysts also view Shopify’s AI commerce initiatives as a potential growth driver rather than an immediate threat. StoneX Backs Shopify on Agent Commerce Data
• Positive Sentiment: Expansion of merchant services: Analysts remain constructive after Shopify’s reported 34% revenue growth, strong gross merchandise volume and $654 million in free cash flow. The planned expansion of Shop Pay Installments into Australia and the addition of Tailwind Labs’ team could strengthen Shopify’s merchant ecosystem and custom-storefront capabilities. Shopify: Buy The Affirm Australia Expansion, But Do Not Chase Blindly
• Neutral Sentiment: Recent selloff leaves technical and valuation questions: SHOP recently fell below a key technical level and remains below its 50-day moving average, although it is above its 200-day average. With a price-to-earnings ratio near 87, investors may be reluctant to chase the rebound despite the bullish $160 target. Turn Shopify Stock Sell-Off Into A Profit Opportunity With This Spread Strategy
• Negative Sentiment: AI-agent competition remains a concern: The launch of consumer AI agents from companies including Meta has weighed on confidence in Shopify, contributing to a sharp recent decline. The bullish view is that these agents may ultimately drive more commerce through Shopify’s infrastructure, but that thesis is not yet proven. Why Meta’s Consumer AI Agent Is Good News for Shopify Stock

Shopify Company Profile

Shopify Inc (NASDAQ:SHOP) is a commerce technology company that provides tools for businesses of various sizes to start, operate and grow retail operations. Its platform enables merchants to create and manage online stores, sell through social media and other digital channels, and support in-person sales through Shopify’s point-of-sale solutions.

Shopify’s products and services include online storefront and website-building tools, payment processing through Shopify Payments, point-of-sale hardware and software, inventory and order management, shipping and fulfillment tools, marketing features, analytics, and financing services for eligible merchants.