Short Interest in Shopify Inc (NYSE:SHOP) Decreases By 17.8%

Shopify Inc (NYSE:SHOP) (TSE:SHOP) saw a large drop in short interest in the month of July. As of July 31st, there was short interest totalling 3,652,000 shares, a drop of 17.8% from the June 30th total of 4,443,500 shares. Based on an average daily volume of 1,850,000 shares, the days-to-cover ratio is currently 2.0 days. Currently, 3.8% of the shares of the stock are short sold.

Shares of Shopify stock traded down $2.58 on Tuesday, reaching $364.15. The company had a trading volume of 60,964 shares, compared to its average volume of 2,037,828. The firm has a market capitalization of $41.05 billion, a price-to-earnings ratio of -597.56 and a beta of 1.30. The company has a current ratio of 11.44, a quick ratio of 11.44 and a debt-to-equity ratio of 0.05. The firm’s 50-day simple moving average is $324.62. Shopify has a 1 year low of $117.64 and a 1 year high of $371.63.

Shopify (NYSE:SHOP) (TSE:SHOP) last announced its earnings results on Thursday, August 1st. The software maker reported $0.14 EPS for the quarter, topping the Zacks’ consensus estimate of ($0.31) by $0.45. The firm had revenue of $361.98 million during the quarter, compared to analysts’ expectations of $350.59 million. Shopify had a negative return on equity of 3.85% and a negative net margin of 5.98%. The company’s quarterly revenue was up 47.8% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.02 EPS. Equities analysts expect that Shopify will post -0.79 EPS for the current fiscal year.

Several brokerages recently issued reports on SHOP. Raymond James lifted their target price on Shopify from $270.00 to $365.00 and gave the company an “outperform” rating in a research note on Friday, August 2nd. Bank of America lifted their price objective on Shopify from $185.00 to $300.00 and gave the stock an “underperform” rating in a research note on Friday, August 2nd. SunTrust Banks lifted their price objective on Shopify to $245.00 and gave the stock a “hold” rating in a research note on Wednesday, May 1st. They noted that the move was a valuation call. Mackie lifted their price objective on Shopify from $280.00 to $360.00 and gave the stock a “buy” rating in a research note on Monday, July 15th. Finally, Morgan Stanley downgraded Shopify from an “equal weight” rating to an “underweight” rating and lifted their price objective for the stock from $173.00 to $209.00 in a research note on Tuesday, May 14th. They noted that the move was a valuation call. Three equities research analysts have rated the stock with a sell rating, ten have assigned a hold rating and fourteen have issued a buy rating to the stock. The company presently has an average rating of “Hold” and an average target price of $327.00.

Institutional investors have recently made changes to their positions in the company. Comerica Securities Inc. raised its holdings in Shopify by 32.4% in the 4th quarter. Comerica Securities Inc. now owns 3,005 shares of the software maker’s stock valued at $416,000 after buying an additional 735 shares during the last quarter. Valeo Financial Advisors LLC raised its holdings in Shopify by 328.1% in the 1st quarter. Valeo Financial Advisors LLC now owns 137 shares of the software maker’s stock valued at $28,000 after buying an additional 105 shares during the last quarter. Paragon Capital Management LLC bought a new position in Shopify in the 1st quarter valued at approximately $72,000. Flagship Harbor Advisors LLC raised its holdings in Shopify by 2.3% in the 1st quarter. Flagship Harbor Advisors LLC now owns 4,342 shares of the software maker’s stock valued at $897,000 after buying an additional 97 shares during the last quarter. Finally, BKS Advisors LLC bought a new position in Shopify in the 1st quarter valued at approximately $289,000. Hedge funds and other institutional investors own 65.72% 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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