Shopify (SHOP) Downgraded to Hold at Zacks Investment Research

Share on StockTwits

Zacks Investment Research cut shares of Shopify (NYSE:SHOP) (TSE:SHOP) from a buy rating to a hold rating in a report published on Thursday, Zacks.com reports.

According to Zacks, “Shopify delivered stellar first-quarter results and raised fiscal 2019 guidance. Robust performance of Shopify Shipping, Shopify Payments and Shopify Capital drove top line growth. The company is benefiting from a diversified expanding merchant base. It 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. Further, lack of significant presence in the Asia-Pacific market, which is the fastest growing retail ecommerce market, is a headwind for Shopify.”

A number of other equities analysts have also recently commented on the company. Wedbush reissued an outperform rating and set a $177.00 target price on shares of Shopify in a report on Monday, January 28th. Royal Bank of Canada increased their target price on Shopify from $159.00 to $180.00 and gave the company a sector perform rating in a report on Monday, February 11th. Canaccord Genuity increased their target price on Shopify from $165.00 to $190.00 and gave the company a buy rating in a report on Tuesday, February 12th. DA Davidson increased their target price on Shopify from $150.00 to $210.00 and gave the company a buy rating in a report on Wednesday, February 13th. Finally, Wells Fargo & Co increased their target price on Shopify from $175.00 to $195.00 and gave the company an outperform rating in a report on Wednesday, February 13th. One analyst has rated the stock with a sell rating, six have given a hold rating and fourteen have issued a buy rating to the company’s stock. Shopify currently has a consensus rating of Buy and a consensus target price of $237.71.

NYSE SHOP traded down $1.92 during trading hours on Thursday, reaching $276.09. The company’s stock had a trading volume of 51,352 shares, compared to its average volume of 2,257,374. The stock has a market capitalization of $29.16 billion, a price-to-earnings ratio of -452.62 and a beta of 1.57. Shopify has a 1-year low of $117.64 and a 1-year high of $279.48. The company has a current ratio of 12.56, a quick ratio of 12.57 and a debt-to-equity ratio of 0.05.

Shopify (NYSE:SHOP) (TSE:SHOP) last released its quarterly earnings results on Tuesday, April 30th. The software maker reported $0.09 earnings per share for the quarter, topping analysts’ consensus estimates of ($0.35) by $0.44. The company had revenue of $320.50 million during the quarter, compared to analysts’ expectations of $310.11 million. Shopify had a negative return on equity of 3.74% and a negative net margin of 6.17%. Shopify’s quarterly revenue was up 49.6% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.04 EPS. Equities analysts predict that Shopify will post -0.87 EPS for the current fiscal year.

Hedge funds have recently bought and sold shares of the company. Valeo Financial Advisors LLC grew its position in shares of Shopify by 328.1% in the first quarter. Valeo Financial Advisors LLC now owns 137 shares of the software maker’s stock valued at $28,000 after purchasing an additional 105 shares in the last quarter. Tortoise Investment Management LLC purchased a new stake in shares of Shopify in the first quarter valued at approximately $29,000. Sound Income Strategies LLC grew its position in shares of Shopify by 8,100.0% in the first quarter. Sound Income Strategies LLC now owns 164 shares of the software maker’s stock valued at $34,000 after purchasing an additional 162 shares in the last quarter. Beutel Goodman & Co Ltd. purchased a new stake in shares of Shopify in the first quarter valued at approximately $35,000. Finally, Signaturefd LLC grew its position in Shopify by 56.9% in the first quarter. Signaturefd LLC now owns 171 shares of the software maker’s stock worth $35,000 after acquiring an additional 62 shares during the period. Institutional investors and hedge funds own 67.14% 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.

Recommended Story: Price to Earnings Ratio (PE) Basics

Get a free copy of the Zacks research report on Shopify (SHOP)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Shopify (NYSE:SHOP)

Receive News & Ratings for Shopify Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Shopify and related companies with MarketBeat.com's FREE daily email newsletter.