Shopify (SHOP) Stock Rating Lowered by Zacks Investment Research

Zacks Investment Research lowered shares of Shopify (NYSE:SHOP) (TSE:SHOP) from a buy rating to a hold rating in a research report sent to investors on Friday, Zacks.com reports.

According to Zacks, “Shopify provides a multi-tenant, cloud-based, multi-channel commerce platform for small and medium-sized businesses (SMBs). The company is benefiting from a diversified expanding merchant base. Robust performance of Shopify Shipping, Shopify Payments and Shopify Capital is a key catalyst. Notably, shares of Shopify have outperformed the industry in the past year. Shopify continues to launch merchant-friendly applications to meet the requirements of a dynamic retail environment, consequently bolstering its merchant base. Moreover, the company is benefiting from retail’s rapid transition to mobile and social sales channels. Initiatives aimed at international expansion and innovative expansion of services remains noteworthy. Nonetheless, increasing investments on product development, infrastructure and platform are likely to limit margin expansion in the near-term.”

A number of other brokerages also recently weighed in on SHOP. Guggenheim downgraded Shopify from a buy rating to a neutral rating in a report on Monday, May 13th. They noted that the move was a valuation call. Morgan Stanley downgraded Shopify from an equal weight rating to an underweight rating and lifted their target price for the stock from $173.00 to $209.00 in a report on Tuesday, May 14th. They noted that the move was a valuation call. DA Davidson lifted their target price on Shopify from $210.00 to $290.00 and gave the stock a buy rating in a report on Wednesday, May 1st. National Bank Financial lifted their target price on Shopify from $250.00 to $270.00 and gave the stock an outperform rating in a report on Wednesday, May 1st. Finally, Credit Suisse Group lifted their target price on Shopify from $190.00 to $275.00 and gave the stock an outperform rating in a report on Wednesday, May 1st. One research analyst has rated the stock with a sell rating, six have assigned a hold rating and fourteen have issued a buy rating to the company. The stock presently has a consensus rating of Buy and an average target price of $240.81.

Shares of SHOP stock opened at $275.85 on Friday. The company has a market capitalization of $30.75 billion, a price-to-earnings ratio of -452.21 and a beta of 1.57. The company has a quick ratio of 12.57, a current ratio of 12.56 and a debt-to-equity ratio of 0.05. Shopify has a fifty-two week low of $117.64 and a fifty-two week high of $280.95.

Shopify (NYSE:SHOP) (TSE:SHOP) last issued its earnings results on Tuesday, April 30th. The software maker reported $0.09 earnings per share for the quarter, topping the Zacks’ consensus estimate of ($0.35) by $0.44. The business had revenue of $320.50 million during the quarter, compared to the consensus estimate of $310.11 million. Shopify had a negative return on equity of 3.74% and a negative net margin of 6.17%. The firm’s revenue for the quarter was up 49.6% on a year-over-year basis. During the same period in the previous year, the company posted $0.04 earnings per share. On average, research analysts anticipate that Shopify will post -0.86 earnings per share for the current year.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in SHOP. Baillie Gifford & Co. increased its holdings in shares of Shopify by 56.3% during the first quarter. Baillie Gifford & Co. now owns 5,920,039 shares of the software maker’s stock valued at $1,223,199,000 after acquiring an additional 2,132,030 shares in the last quarter. Morgan Stanley increased its holdings in shares of Shopify by 91.7% during the first quarter. Morgan Stanley now owns 4,312,294 shares of the software maker’s stock valued at $891,007,000 after acquiring an additional 2,063,041 shares in the last quarter. Norges Bank bought a new stake in shares of Shopify during the fourth quarter valued at approximately $101,062,000. Renaissance Technologies LLC increased its holdings in shares of Shopify by 12,324.1% during the first quarter. Renaissance Technologies LLC now owns 720,600 shares of the software maker’s stock valued at $148,890,000 after acquiring an additional 714,800 shares in the last quarter. Finally, CIBC World Markets Inc. boosted its position in shares of Shopify by 378.5% during the first quarter. CIBC World Markets Inc. now owns 865,184 shares of the software maker’s stock valued at $178,764,000 after buying an additional 684,365 shares during the last quarter. Hedge funds and other institutional investors own 64.75% of the company’s stock.

About Shopify

Shopify Inc provides a cloud-based multi-channel commerce platform for small and medium-sized businesses in the United States, the United Kingdom, Canada, Australia, and internationally. Its platform provides merchants with a single view of business and customers in various sales channels, including Web and mobile storefronts, physical retail locations, social media storefronts, and marketplaces; and enables to manage products and inventory, process orders and payments, ship orders, build customer relationships, leverage analytics and reporting, and access financing.

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