Zacks Investment Research cut shares of Shopify (NYSE:SHOP) (TSE:SHOP) from a buy rating to a hold rating in a research note published on Friday morning, Zacks.com reports.

According to Zacks, “Shopify provides a multi-tenant, cloud-based, multi-channel commerce platform for small and medium-sized businesses (SMBs). The company is benefiting from a diversified expanding merchant base. Robust performance of Shopify Shipping, Shopify Payments and Shopify Capital is a key catalyst. Notably, shares of Shopify have outperformed the industry in the past year. Shopify continues to launch merchant-friendly applications to meet the requirements of a dynamic retail environment, consequently bolstering its merchant base. Moreover, the company is benefiting from retail’s rapid transition to mobile and social sales channels. Initiatives aimed at international expansion and innovative expansion of services remains noteworthy. Nonetheless, increasing investments on product development, infrastructure and platform are likely to limit margin expansion in the near-term.”

Other equities research analysts have also recently issued research reports about the company. Roth Capital boosted their target price on Shopify from $275.00 to $225.00 in a research note on Tuesday, April 30th. Robert W. Baird boosted their target price on Shopify from $208.00 to $269.00 and gave the stock an outperform rating in a research note on Tuesday, April 30th. Macquarie boosted their target price on Shopify to $230.00 and gave the stock an outperform rating in a research note on Wednesday, March 27th. Piper Jaffray Companies boosted their target price on Shopify from $149.00 to $216.00 and gave the stock a neutral rating in a research note on Tuesday, April 30th. Finally, Canaccord Genuity boosted their target price on Shopify from $190.00 to $270.00 and gave the stock a buy rating in a research note on Wednesday, May 1st. They noted that the move was a valuation call. One research analyst has rated the stock with a sell rating, six have issued a hold rating and fourteen have given a buy rating to the company’s stock. The company has an average rating of Buy and an average price target of $240.81.

Shares of SHOP opened at $275.85 on Friday. The company has a debt-to-equity ratio of 0.05, a current ratio of 12.56 and a quick ratio of 12.57. The stock has a market capitalization of $30.75 billion, a PE ratio of -452.21 and a beta of 1.57. Shopify has a 1 year low of $117.64 and a 1 year high of $280.95.

Shopify (NYSE:SHOP) (TSE:SHOP) last announced its quarterly earnings data on Tuesday, April 30th. The software maker reported $0.09 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.35) by $0.44. The business had revenue of $320.50 million during the quarter, compared to analysts’ expectations of $310.11 million. Shopify had a negative return on equity of 3.74% and a negative net margin of 6.17%. The business’s quarterly revenue was up 49.6% compared to the same quarter last year. During the same quarter last year, the business posted $0.04 EPS. As a group, sell-side analysts expect that Shopify will post -0.86 EPS for the current year.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Legal & General Group Plc increased its holdings in Shopify by 246.7% in the 3rd quarter. Legal & General Group Plc now owns 282,280 shares of the software maker’s stock worth $46,414,000 after buying an additional 200,868 shares during the period. Vanguard Group Inc. grew its stake in shares of Shopify by 15.1% during the 3rd quarter. Vanguard Group Inc. now owns 202,962 shares of the software maker’s stock worth $33,379,000 after purchasing an additional 26,685 shares during the period. Vanguard Group Inc grew its stake in shares of Shopify by 15.1% during the 3rd quarter. Vanguard Group Inc now owns 202,962 shares of the software maker’s stock worth $33,379,000 after purchasing an additional 26,685 shares during the period. IFP Advisors Inc grew its stake in shares of Shopify by 17.4% during the 4th quarter. IFP Advisors Inc now owns 2,458 shares of the software maker’s stock worth $328,000 after purchasing an additional 365 shares during the period. Finally, Winslow Evans & Crocker Inc. grew its stake in shares of Shopify by 447.2% during the 4th quarter. Winslow Evans & Crocker Inc. now owns 580 shares of the software maker’s stock worth $82,000 after purchasing an additional 474 shares during the period. Hedge funds and other institutional investors own 64.75% of the company’s stock.

Shopify Company Profile

Shopify Inc provides a cloud-based multi-channel commerce platform for small and medium-sized businesses in the United States, the United Kingdom, Canada, Australia, and internationally. Its platform provides merchants with a single view of business and customers in various sales channels, including Web and mobile storefronts, physical retail locations, social media storefronts, and marketplaces; and enables to manage products and inventory, process orders and payments, ship orders, build customer relationships, leverage analytics and reporting, and access financing.

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