Shopify (NASDAQ:SHOP) Trading Down 2.6% – Time to Sell?

Shares of Shopify Inc. (NASDAQ:SHOP) (TSE:SHOP) dropped 2.6% on Tuesday . The company traded as low as $98.57 and last traded at $99.84. Approximately 13,670,327 shares were traded during mid-day trading, an increase of 20% from the average daily volume of 11,361,563 shares. The stock had previously closed at $102.54.

Wall Street Analyst Weigh In

SHOP has been the topic of a number of recent research reports. BMO Capital Markets lowered their target price on Shopify from $160.00 to $145.00 and set an “outperform” rating on the stock in a report on Wednesday, May 6th. Piper Sandler reissued an “overweight” rating and issued a $150.00 target price (down from $165.00) on shares of Shopify in a report on Tuesday, May 5th. Royal Bank Of Canada reissued an “outperform” rating and issued a $170.00 target price on shares of Shopify in a report on Wednesday, May 6th. DZ Bank raised Shopify from a “hold” rating to a “strong-buy” rating in a report on Monday, February 16th. Finally, ATB Cormark Capital Markets raised Shopify from a “sector perform” rating to an “outperform” rating in a report on Tuesday, February 10th. Two research analysts have rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating and ten have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Shopify currently has a consensus rating of “Moderate Buy” and a consensus price target of $158.42.

Shopify Price Performance

The business has a 50-day simple moving average of $121.09 and a 200 day simple moving average of $140.15. The firm has a market cap of $130.20 billion, a PE ratio of 98.85, a PEG ratio of 3.11 and a beta of 2.64.

Shopify (NASDAQ:SHOP) (TSE:SHOP) last issued its quarterly earnings results on Tuesday, May 5th. The software maker reported $999.00 EPS for the quarter, topping analysts’ consensus estimates of $0.22 by $998.78. The business had revenue of $3.17 billion during the quarter, compared to analysts’ expectations of $3.08 billion. Shopify had a return on equity of 12.07% and a net margin of 10.77%. On average, equities analysts forecast that Shopify Inc. will post 1.36 earnings per share for the current fiscal year.

Institutional Trading of Shopify

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. grew its position in shares of Shopify by 1.5% during the fourth quarter. Vanguard Group Inc. now owns 50,670,627 shares of the software maker’s stock worth $8,158,643,000 after purchasing an additional 743,803 shares in the last quarter. Jennison Associates LLC grew its position in shares of Shopify by 64.3% during the third quarter. Jennison Associates LLC now owns 18,923,431 shares of the software maker’s stock worth $2,812,211,000 after purchasing an additional 7,403,821 shares in the last quarter. Norges Bank purchased a new stake in shares of Shopify during the fourth quarter worth about $2,611,797,000. Invesco Ltd. grew its position in shares of Shopify by 9.8% during the fourth quarter. Invesco Ltd. now owns 14,026,193 shares of the software maker’s stock worth $2,257,796,000 after purchasing an additional 1,252,074 shares in the last quarter. Finally, Geode Capital Management LLC grew its position in shares of Shopify by 6.2% during the fourth quarter. Geode Capital Management LLC now owns 12,601,476 shares of the software maker’s stock worth $2,043,365,000 after purchasing an additional 737,892 shares in the last quarter. Hedge funds and other institutional investors own 69.27% of the company’s stock.

Shopify Company Profile

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.