Shopify (NYSE:SHOP) Shares Up 6.2% – Should You Buy?

Shopify Inc. (NYSE:SHOP) (TSE:SHOP) shares rose 6.2% on Wednesday . The company traded as high as $100.96 and last traded at $99.83. Approximately 6,466,815 shares changed hands during mid-day trading, a decline of 24% from the average daily volume of 8,536,557 shares. The stock had previously closed at $94.01.

Wall Street Analyst Weigh In

A number of research firms have commented on SHOP. DZ Bank cut shares of Shopify from a “hold” rating to a “sell” rating in a research report on Thursday, November 21st. Oppenheimer upped their price target on shares of Shopify from $130.00 to $150.00 and gave the company an “outperform” rating in a research note on Wednesday, February 12th. Canaccord Genuity Group upped their target price on Shopify from $125.00 to $140.00 and gave the company a “buy” rating in a research report on Wednesday, February 12th. Wedbush reiterated an “outperform” rating and set a $125.00 price objective on shares of Shopify in a research report on Tuesday, February 11th. Finally, Barclays boosted their target price on shares of Shopify from $93.00 to $100.00 and gave the company an “equal weight” rating in a research report on Wednesday, February 12th. One equities research analyst has rated the stock with a sell rating, fifteen have issued a hold rating, twenty-four have given a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat, Shopify presently has a consensus rating of “Moderate Buy” and an average target price of $126.31.

Shopify Stock Performance

The company has a market cap of $131.16 billion, a PE ratio of 65.35, a price-to-earnings-growth ratio of 4.82 and a beta of 2.60. The company’s 50 day moving average price is $110.03 and its 200-day moving average price is $99.12.

Shopify (NYSE:SHOP) (TSE:SHOP) last posted its quarterly earnings results on Tuesday, February 11th. The software maker reported $0.34 earnings per share for the quarter, missing the consensus estimate of $0.44 by ($0.10). Shopify had a return on equity of 12.00% and a net margin of 22.74%. Equities research analysts expect that Shopify Inc. will post 1.12 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the business. Capital World Investors grew its position in shares of Shopify by 0.9% in the fourth quarter. Capital World Investors now owns 53,102,707 shares of the software maker’s stock valued at $5,646,455,000 after purchasing an additional 496,982 shares in the last quarter. Vanguard Group Inc. grew its holdings in Shopify by 1.7% during the 4th quarter. Vanguard Group Inc. now owns 47,080,112 shares of the software maker’s stock valued at $5,010,721,000 after buying an additional 781,162 shares in the last quarter. FMR LLC increased its position in shares of Shopify by 3.4% during the fourth quarter. FMR LLC now owns 43,732,077 shares of the software maker’s stock valued at $4,653,054,000 after buying an additional 1,426,000 shares during the period. Capital International Investors lifted its holdings in shares of Shopify by 2.7% in the fourth quarter. Capital International Investors now owns 36,516,305 shares of the software maker’s stock worth $3,883,039,000 after buying an additional 968,026 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership lifted its holdings in shares of Shopify by 79.8% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 16,487,579 shares of the software maker’s stock worth $1,752,834,000 after buying an additional 7,316,862 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.