Shopify (NYSE:SHOP) Trading Down 5.2% – Here’s Why

Shares of Shopify Inc. (NYSE:SHOP) (TSE:SHOP) were down 5.2% during trading on Thursday . The company traded as low as $89.10 and last traded at $91.50. Approximately 4,195,708 shares traded hands during trading, a decline of 51% from the average daily volume of 8,529,045 shares. The stock had previously closed at $96.53.

Analysts Set New Price Targets

A number of analysts recently weighed in on the stock. KeyCorp increased their price objective on shares of Shopify from $80.00 to $130.00 and gave the stock an “overweight” rating in a research report on Wednesday, November 13th. DA Davidson boosted their price objective on Shopify from $130.00 to $150.00 and gave the company a “buy” rating in a report on Wednesday, February 12th. Phillip Securities lowered Shopify from a “strong-buy” rating to a “moderate buy” rating in a research note on Monday, February 17th. Moffett Nathanson lifted their target price on Shopify from $86.00 to $99.00 and gave the stock a “neutral” rating in a research report on Tuesday, November 26th. Finally, JMP Securities restated a “market outperform” rating and issued a $120.00 price target on shares of Shopify in a report on Thursday, December 12th. One investment analyst has rated the stock with a sell rating, fifteen have given a hold rating, twenty-four have given a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat.com, Shopify currently has an average rating of “Moderate Buy” and a consensus target price of $126.31.

Shopify Stock Performance

The company has a market cap of $118.05 billion, a PE ratio of 59.06, a PEG ratio of 4.82 and a beta of 2.60. The company’s 50-day simple moving average is $111.51 and its 200 day simple moving average is $98.34.

Shopify (NYSE:SHOP) (TSE:SHOP) last posted its quarterly earnings results on Tuesday, February 11th. The software maker reported $0.34 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.44 by ($0.10). Shopify had a net margin of 22.74% and a return on equity of 12.00%. Analysts forecast that Shopify Inc. will post 1.12 EPS for the current year.

Institutional Investors Weigh In On Shopify

A number of hedge funds and other institutional investors have recently modified their holdings of SHOP. Norges Bank purchased a new stake in Shopify during the 4th quarter worth about $1,542,262,000. Arrowstreet Capital Limited Partnership lifted its stake in Shopify by 79.8% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 16,487,579 shares of the software maker’s stock worth $1,752,834,000 after purchasing an additional 7,316,862 shares during the last quarter. FMR LLC boosted its holdings in Shopify by 16.1% in the third quarter. FMR LLC now owns 42,306,077 shares of the software maker’s stock valued at $3,389,637,000 after purchasing an additional 5,869,795 shares in the last quarter. Alliancebernstein L.P. boosted its holdings in Shopify by 631.3% in the fourth quarter. Alliancebernstein L.P. now owns 4,459,580 shares of the software maker’s stock valued at $474,187,000 after purchasing an additional 3,849,796 shares in the last quarter. Finally, Marshall Wace LLP increased its stake in Shopify by 623.8% in the fourth quarter. Marshall Wace LLP now owns 1,870,891 shares of the software maker’s stock valued at $198,932,000 after purchasing an additional 2,228,091 shares during the last quarter. 69.27% of the stock is currently owned by institutional investors and hedge funds.

About Shopify

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.