Shopify (NASDAQ:SHOP) Shares Down 7% – Here’s Why

Shopify Inc. (NASDAQ:SHOP) (TSE:SHOP) shares fell 7% during trading on Wednesday . The company traded as low as $155.40 and last traded at $155.80. 2,848,323 shares were traded during trading, a decline of 41% from the average session volume of 4,818,289 shares. The stock had previously closed at $167.44.

Wall Street Analysts Forecast Growth

SHOP has been the topic of several research reports. Oppenheimer restated an “outperform” rating on shares of Shopify in a research note on Monday, December 1st. BNP Paribas Exane assumed coverage on Shopify in a report on Monday, November 24th. They set a “neutral” rating on the stock. Wolfe Research upgraded Shopify from a “hold” rating to an “outperform” rating in a research note on Tuesday, January 6th. JPMorgan Chase & Co. raised their target price on Shopify from $179.00 to $180.00 and gave the stock an “overweight” rating in a research report on Wednesday, November 5th. Finally, Bank of America boosted their price target on shares of Shopify from $185.00 to $190.00 and gave the company a “buy” rating in a report on Wednesday, December 17th. Twenty-four equities research analysts have rated the stock with a Buy rating and twenty-one have assigned a Hold rating to the stock. According to MarketBeat.com, Shopify currently has an average rating of “Moderate Buy” and an average target price of $171.61.

Shopify Trading Down 1.4%

The firm has a market cap of $202.84 billion, a P/E ratio of 151.91, a price-to-earnings-growth ratio of 4.67 and a beta of 2.83. The company’s fifty day moving average price is $159.98 and its two-hundred day moving average price is $149.03.

Shopify (NASDAQ:SHOP) (TSE:SHOP) last announced its quarterly earnings results on Tuesday, November 4th. The software maker reported $0.27 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.24 by $0.03. The firm had revenue of $2.84 billion during the quarter, compared to the consensus estimate of $2.75 billion. Shopify had a net margin of 16.65% and a return on equity of 11.72%. On average, analysts predict that Shopify Inc. will post 1.12 EPS for the current fiscal year.

Hedge Funds Weigh In On Shopify

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Brighton Jones LLC grew its holdings in Shopify by 2.8% during the 4th quarter. Brighton Jones LLC now owns 21,176 shares of the software maker’s stock worth $2,252,000 after acquiring an additional 584 shares during the last quarter. AQR Capital Management LLC lifted its position in shares of Shopify by 107.3% during the first quarter. AQR Capital Management LLC now owns 14,576 shares of the software maker’s stock worth $1,392,000 after purchasing an additional 7,544 shares in the last quarter. Balefire LLC acquired a new position in shares of Shopify during the second quarter worth approximately $317,000. Pallas Capital Advisors LLC grew its stake in shares of Shopify by 0.8% during the second quarter. Pallas Capital Advisors LLC now owns 15,544 shares of the software maker’s stock valued at $1,793,000 after purchasing an additional 118 shares during the last quarter. Finally, Sapient Capital LLC acquired a new stake in shares of Shopify in the second quarter valued at approximately $204,000. Institutional investors and hedge funds own 69.27% of the company’s stock.

About Shopify

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.