Shopify Inc. $SHOP Shares Acquired by Rakuten Investment Management Inc.

Rakuten Investment Management Inc. raised its holdings in shares of Shopify Inc. (NASDAQ:SHOP) (TSE:SHOP) by 11.1% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 104,841 shares of the software maker’s stock after acquiring an additional 10,478 shares during the period. Rakuten Investment Management Inc.’s holdings in Shopify were worth $15,544,000 at the end of the most recent reporting period.

Other large investors have also recently made changes to their positions in the company. The Manufacturers Life Insurance Company boosted its stake in shares of Shopify by 8.5% in the 1st quarter. The Manufacturers Life Insurance Company now owns 8,418,903 shares of the software maker’s stock valued at $998,137,000 after purchasing an additional 660,198 shares in the last quarter. Swiss National Bank raised its position in Shopify by 27.0% in the 1st quarter. Swiss National Bank now owns 4,115,300 shares of the software maker’s stock worth $487,580,000 after purchasing an additional 876,100 shares during the period. Sumitomo Mitsui Trust Group Inc. raised its position in Shopify by 4.1% in the 1st quarter. Sumitomo Mitsui Trust Group Inc. now owns 3,678,602 shares of the software maker’s stock worth $436,356,000 after purchasing an additional 145,500 shares during the period. Bank of New York Mellon Corp raised its position in Shopify by 4.8% in the 1st quarter. Bank of New York Mellon Corp now owns 3,495,964 shares of the software maker’s stock worth $414,691,000 after purchasing an additional 159,873 shares during the period. Finally, Amova Asset Management Americas Inc. lifted its stake in Shopify by 5.0% in the first quarter. Amova Asset Management Americas Inc. now owns 3,458,265 shares of the software maker’s stock worth $410,219,000 after purchasing an additional 165,080 shares during the last quarter. 69.27% of the stock is owned by hedge funds and other institutional investors.

Key Shopify News

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Shopify reported Q3 revenue of $3.74 billion, up 31.6% year over year, and earnings per share of $0.49, above consensus. Free cash flow rose 61% to $816 million, while operating income increased 66%. Read More.
• Positive Sentiment: Analyst actions were broadly supportive: National Bank Financial raised its target to $185 and reaffirmed “outperform,” while RBC maintained “outperform” with a $200 target. UBS raised its target to $160 but kept a neutral rating. Read More. · Read More. · Read More.
• Positive Sentiment: ARK Invest reportedly bought $12.5 million of Shopify shares during the post-earnings weakness, providing a vote of confidence from a prominent growth investor. Read More.
• Neutral Sentiment: Shopify highlighted growing AI-driven shopping activity, expanding payments penetration and rising Shop Pay usage. These initiatives could support future growth, though their financial contribution remains to be proven. Read More.
• Negative Sentiment: The quarter fell short of expectations on gross merchandise volume (about $119.1 billion) and subscription revenue; some reports also cited a modest revenue miss. The shortfalls triggered the recent sell-off and keep expectations for holiday-quarter execution high. Read More.
• Negative Sentiment: Valuation remains a risk: Shopify trades at a rich earnings multiple, leaving the stock vulnerable if growth or margins disappoint. Cantor Fitzgerald cut its target to $150 and retained a neutral rating. Read More.

Shopify Price Performance

Shares of SHOP stock opened at $153.03 on Thursday. The company has a debt-to-equity ratio of 0.01, a quick ratio of 5.35 and a current ratio of 5.35. Shopify Inc. has a fifty-two week low of $94.00 and a fifty-two week high of $180.88. The firm has a market cap of $196.90 billion, a P/E ratio of 93.31, a P/E/G ratio of 2.94 and a beta of 2.65. The business’s 50 day moving average price is $152.75 and its 200-day moving average price is $130.11.

Shopify (NASDAQ:SHOP) (TSE:SHOP) last announced its quarterly earnings results on Tuesday, November 3rd. The software maker reported $0.49 EPS for the quarter, topping analysts’ consensus estimates of $0.33 by $0.16. The company had revenue of $3.74 billion during the quarter. Shopify had a return on equity of 13.99% and a net margin of 15.01%. The business’s revenue was up 31.6% compared to the same quarter last year. During the same period in the previous year, the business earned $0.34 EPS. On average, equities research analysts anticipate that Shopify Inc. will post 1.46 earnings per share for the current year.

Analysts Set New Price Targets

SHOP has been the subject of several analyst reports. Citigroup upped their price target on shares of Shopify from $196.00 to $216.00 and gave the company a “buy” rating in a research report on Tuesday, October 27th. Zacks Research upgraded Shopify from a “hold” rating to a “strong-buy” rating in a report on Friday, October 16th. Benchmark boosted their target price on Shopify from $145.00 to $170.00 and gave the company a “buy” rating in a research note on Thursday, August 6th. Rosenblatt Securities dropped their target price on Shopify from $186.00 to $180.00 and set a “buy” rating for the company in a report on Wednesday. Finally, DZ Bank lowered Shopify from a “strong-buy” rating to a “hold” rating in a research report on Friday, August 7th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-seven have given a Buy rating and ten have assigned a Hold rating to the stock. According to MarketBeat, Shopify currently has a consensus rating of “Moderate Buy” and an average target price of $178.79.

Shopify Company Profile

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.