Argus Reaffirms Buy Rating for Shopify (NASDAQ:SHOP)

Shopify (NASDAQ:SHOP) (TSE:SHOP)‘s stock had its “buy” rating reaffirmed by stock analysts at Argus in a report issued on Thursday, Benzinga reports. They presently have a $180.00 price target on the software maker’s stock. Argus‘s price objective would suggest a potential upside of 20.88% from the stock’s current price.

A number of other research analysts have also recently commented on SHOP. Phillip Securities cut Shopify from a “strong-buy” rating to a “moderate buy” rating in a research report on Monday, August 17th. DZ Bank downgraded Shopify from a “strong-buy” rating to a “hold” rating in a research note on Friday, August 7th. The Goldman Sachs Group lifted their price objective on Shopify from $170.00 to $194.00 and gave the stock a “buy” rating in a report on Thursday, August 6th. Zacks Research upgraded Shopify from a “hold” rating to a “strong-buy” rating in a research note on Friday, October 16th. Finally, Royal Bank Of Canada reaffirmed an “outperform” rating and set a $200.00 price objective on shares of Shopify in a report on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, thirty-eight have issued a Buy rating and ten have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $178.82.

Shopify Stock Up 3.6%

SHOP traded up $5.16 during mid-day trading on Thursday, reaching $148.91. 7,972,804 shares of the stock were exchanged, compared to its average volume of 8,231,345. The company has a debt-to-equity ratio of 0.01, a quick ratio of 5.35 and a current ratio of 5.35. The stock has a market capitalization of $191.59 billion, a PE ratio of 90.80, a price-to-earnings-growth ratio of 3.23 and a beta of 2.65. The company has a 50 day moving average price of $152.51 and a two-hundred day moving average price of $130.07. Shopify has a 1 year low of $94.00 and a 1 year high of $180.88.

Shopify (NASDAQ:SHOP) (TSE:SHOP) last released its earnings results on Tuesday, November 3rd. The software maker reported $0.49 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.33 by $0.16. The company had revenue of $3.74 billion during the quarter. Shopify had a return on equity of 12.58% and a net margin of 14.53%. The business’s revenue was up 31.6% on a year-over-year basis. During the same period in the prior year, the company earned $0.34 earnings per share. As a group, research analysts anticipate that Shopify will post 1.47 EPS for the current year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Fortitude Family Office LLC purchased a new position in Shopify in the 3rd quarter worth $29,000. MADDEN SECURITIES Corp purchased a new stake in Shopify during the third quarter valued at about $30,000. Laurel Wealth Advisors LLC purchased a new stake in Shopify during the third quarter valued at about $32,000. Graney & King LLC bought a new position in shares of Shopify during the first quarter valued at about $27,000. Finally, Trellis Wealth Advisors LLC bought a new position in shares of Shopify during the third quarter valued at about $37,000. 69.27% of the stock is currently owned by institutional investors.

Shopify News Summary

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Shopify reported 32% year-over-year revenue growth to about $3.7 billion, GMV growth of 30% to $119 billion, and a 22% free-cash-flow margin. Coverage also highlighted a forecast for another quarter of 30%-plus growth as the holiday shopping season approaches. Article Article
• Positive Sentiment: Several analysts remain constructive: Morgan Stanley reiterated a buy call after the pullback, Argus reaffirmed its buy rating with a $180 target, and Wedbush and RBC issued Outperform ratings. UBS raised its target to $160, though it kept a Neutral rating. Article Article
• Positive Sentiment: Traders bought a large volume of Shopify call options, suggesting some market participants are positioning for a rebound, though options activity is not a guarantee of future performance. Article
• Negative Sentiment: One report says Shopify’s results included a slight miss, which may be overshadowing its growth and prompting investors to reassess its premium valuation. Article
• Negative Sentiment: Rosenblatt lowered its expectations for the stock, while Cantor Fitzgerald issued a pessimistic forecast, adding to near-term analyst caution. Article Article

Shopify Company Profile

Shopify is a commerce technology company that provides tools for businesses to create and operate online stores. Its platform supports activities such as product management, order processing, payments, shipping, marketing and customer engagement.

Shopify also offers point-of-sale tools for merchants selling in person, connecting retail operations with online sales. Its services are used by businesses of varying sizes and are available to merchants in countries around the world.

Founded in 2006, Shopify is headquartered in Ottawa, Canada.