Stock Traders Buy Large Volume of Shopify Call Options (NASDAQ:SHOP)

Shopify Inc. (NASDAQ:SHOP) (TSE:SHOP) saw unusually large options trading activity on Wednesday. Investors purchased 102,199 call options on the company. This represents an increase of approximately 125% compared to the average daily volume of 45,372 call options.

Hedge Funds Weigh In On Shopify

A number of institutional investors and hedge funds have recently added to or reduced their stakes in SHOP. Signal Advisors Wealth LLC lifted its stake in Shopify by 0.5% in the 3rd quarter. Signal Advisors Wealth LLC now owns 12,589 shares of the software maker’s stock valued at $1,867,000 after purchasing an additional 60 shares during the last quarter. Canopy Partners LLC raised its holdings in Shopify by 3.0% in the 3rd quarter. Canopy Partners LLC now owns 2,109 shares of the software maker’s stock valued at $313,000 after acquiring an additional 61 shares during the period. Midway Capital Research & Management grew its stake in shares of Shopify by 0.5% in the third quarter. Midway Capital Research & Management now owns 14,008 shares of the software maker’s stock valued at $2,077,000 after acquiring an additional 65 shares in the last quarter. Eagle Wealth Advisors LLC increased its stake in Shopify by 3.0% during the 3rd quarter. Eagle Wealth Advisors LLC now owns 2,330 shares of the software maker’s stock worth $346,000 after acquiring an additional 67 shares during the period. Finally, Asset One Wealth Management LLC boosted its position in shares of Shopify by 0.3% during the 3rd quarter. Asset One Wealth Management LLC now owns 24,060 shares of the software maker’s stock worth $3,568,000 after acquiring an additional 69 shares in the last quarter. 69.27% of the stock is owned by institutional investors and hedge funds.

Shopify Stock Performance

NASDAQ:SHOP traded up $8.76 during trading hours on Wednesday, hitting $151.33. 4,791,329 shares of the company traded hands, compared to its average volume of 10,254,485. Shopify has a twelve month low of $94.00 and a twelve month high of $180.88. The company has a current ratio of 5.35, a quick ratio of 5.35 and a debt-to-equity ratio of 0.01. The stock has a market capitalization of $194.71 billion, a price-to-earnings ratio of 102.25, a P/E/G ratio of 3.23 and a beta of 2.65. The firm has a 50-day moving average of $152.77 and a 200 day moving average of $130.13.

Shopify (NASDAQ:SHOP) (TSE:SHOP) last announced its earnings results on Tuesday, November 3rd. The software maker reported $0.49 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.33 by $0.16. The business had revenue of $3.74 billion during the quarter. Shopify had a net margin of 14.53% and a return on equity of 12.58%. The company’s revenue for the quarter was up 31.6% compared to the same quarter last year. During the same quarter last year, the business earned $0.34 EPS. On average, analysts forecast that Shopify will post 1.46 EPS for the current year.

Wall Street Analysts Forecast Growth

SHOP has been the subject of several recent analyst reports. DA Davidson set a $180.00 price target on Shopify and gave the company a “buy” rating in a report on Tuesday. DZ Bank downgraded Shopify from a “strong-buy” rating to a “hold” rating in a report on Friday, August 7th. Citigroup boosted their price objective on Shopify from $196.00 to $216.00 and gave the company a “buy” rating in a research report on Tuesday, October 27th. Deutsche Bank Aktiengesellschaft lifted their price target on Shopify from $175.00 to $185.00 and gave the company a “buy” rating in a research report on Thursday, August 6th. Finally, Truist Financial set a $180.00 target price on shares of Shopify and gave the company a “buy” rating in a research note on Wednesday, August 5th. One research analyst has rated the stock with a Strong Buy rating, thirty-eight have assigned a Buy rating and ten have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $178.49.

Key Shopify News

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Shopify reported Q3 revenue of about $3.7 billion, up 32% year over year, and earnings of $0.49 per share, above consensus. Operating income reportedly rose 66%, while free cash flow increased 61% to $816 million. Shopify Stock Fell After Its Report. Here’s the Price I’d Pay for It.
• Positive Sentiment: Wedbush reaffirmed its outperform rating with a $176 price target. Rosenblatt lowered its target from $186 to $180 but kept a buy rating, both indicating further potential upside from the prices cited in the reports.
• Positive Sentiment: Management highlighted momentum in AI-enabled commerce: AI-driven traffic was up 2.6 times, and Shop Pay gross merchandise volume rose 50%. Shopify Q3 2026 Earnings Call Highlights
• Neutral Sentiment: Analyst views remain divided: Cantor Fitzgerald cut its target from $158 to $150 and maintained a neutral rating, while other analysts’ targets remain higher. Cantor Fitzgerald recommendations
• Negative Sentiment: The main pressure is that Q3 gross merchandise volume was $119.1 billion, slightly below the roughly $120 billion expected, alongside a subscription-revenue shortfall. With Shopify’s valuation elevated, investors appear to be treating even modest misses as significant. Shopify falls after Q3 revenue and merchandise volume miss estimates
• Negative Sentiment: Reports also cite AI-computing expenses and pre-holiday infrastructure investment as potential cost and margin concerns, tempering the positive growth and cash-flow figures.

About Shopify

Shopify Inc is a commerce technology company that provides tools for businesses of various sizes to start, operate and grow online and in physical retail environments. Its platform supports online storefronts, product and inventory management, order processing, marketing, analytics and customer engagement.

The company offers subscription-based plans and merchant solutions, including Shopify Payments, Shopify POS, Shopify Capital and tools for shipping, checkout and fulfillment. Shopify also supports sales through multiple channels, such as merchants’ own websites, mobile devices, social media and third-party marketplaces.

Shopify was founded in 2006 by Tobias Lütke, Daniel Weinand and Scott Lake after the founders developed an online store for snowboarding equipment.