Shopify (NASDAQ:SHOP) Trading Down 2.3% – Here’s Why

Shopify Inc. (NASDAQ:SHOP) (TSE:SHOP)’s stock price was down 2.3% on Friday . The stock traded as low as $146.88 and last traded at $152.41. Approximately 10,071,170 shares were traded during mid-day trading, an increase of 4% from the average daily volume of 9,707,524 shares. The stock had previously closed at $156.05.

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on SHOP. Phillip Securities downgraded shares of Shopify from a “moderate buy” rating to a “hold” rating in a report on Tuesday, August 12th. Mizuho boosted their price target on Shopify from $85.00 to $150.00 and gave the company a “neutral” rating in a report on Thursday, August 7th. Zacks Research raised Shopify from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, October 14th. Benchmark reiterated a “buy” rating on shares of Shopify in a research note on Wednesday. Finally, Wedbush restated an “outperform” rating and set a $185.00 target price (up previously from $160.00) on shares of Shopify in a research note on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, twenty-two have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $163.89.

Shopify Price Performance

The firm’s 50-day moving average price is $155.37 and its 200-day moving average price is $129.48. The stock has a market cap of $198.08 billion, a P/E ratio of 112.90, a PEG ratio of 6.81 and a beta of 2.73.

Shopify (NASDAQ:SHOP) (TSE:SHOP) last issued its earnings results on Tuesday, November 4th. The software maker reported $0.27 earnings per share for the quarter, topping analysts’ consensus estimates of $0.24 by $0.03. The firm had revenue of $2.84 billion during the quarter, compared to analyst estimates of $2.75 billion. Shopify had a net margin of 16.65% and a return on equity of 11.72%. Shopify has set its Q4 2025 guidance at EPS. Sell-side analysts expect that Shopify Inc. will post 1.12 earnings per share for the current year.

Institutional Investors Weigh In On Shopify

Hedge funds have recently made changes to their positions in the company. Norges Bank purchased a new position in Shopify during the 2nd quarter valued at approximately $1,794,952,000. Jennison Associates LLC boosted its position in shares of Shopify by 64.3% during the 3rd quarter. Jennison Associates LLC now owns 18,923,431 shares of the software maker’s stock valued at $2,812,211,000 after acquiring an additional 7,403,821 shares during the last quarter. Nuveen LLC purchased a new position in shares of Shopify in the first quarter valued at $667,392,000. Brown Advisory Inc. increased its position in Shopify by 5,193.6% in the second quarter. Brown Advisory Inc. now owns 2,066,884 shares of the software maker’s stock worth $238,419,000 after purchasing an additional 2,027,839 shares during the last quarter. Finally, Geode Capital Management LLC raised its stake in Shopify by 19.9% during the second quarter. Geode Capital Management LLC now owns 10,731,795 shares of the software maker’s stock valued at $1,247,007,000 after purchasing an additional 1,781,530 shares in the last quarter. 69.27% of the stock is currently owned by hedge funds and other institutional investors.

Shopify Company Profile

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.