Advisory Resource Group, a financial advisory firm, recently decreased its holdings in Shopify Inc. by 22.1% in the second quarter of this year. According to the firm’s disclosure with the Securities and Exchange Commission (SEC), it sold 2,988 shares of Shopify, reducing its position to 10,517 shares. The value of Advisory Resource Group’s stake in the software maker was approximately $679,000 as of its most recent filing with the SEC.
Shopify, a commerce company based in Canada, provides a platform and related services for merchants across various regions including North America, Europe, Asia Pacific, and Latin America. Their platform allows merchants to manage and market their products through multiple sales channels such as web and mobile storefronts, physical retail locations, social media platforms, and marketplaces.
On August 2nd of this year, Shopify released its quarterly earnings results. The company reported earnings per share of ($0.08), falling short of the consensus estimate by ($0.02). Additionally, Shopify experienced a negative return on equity of 5.36% and a negative net margin of 32.13%. Despite these results, the company generated $1.69 billion in revenue for the quarter, surpassing the consensus estimate of $1.63 billion.
Looking ahead to the remainder of this year, research analysts anticipate that Shopify will post an EPS (earnings per share) of -0.14. While these figures may not be entirely encouraging at first glance due to missed expectations and negative financial performance metrics, it is important to consider the broader context within which Shopify operates.
In recent years, e-commerce has experienced tremendous growth globally as consumers increasingly turn to online shopping for convenience and accessibility. This trend has been intensified by global events such as the COVID-19 pandemic that prompted many businesses to pivot towards digital solutions to stay operational during lockdowns and restrictions.
As one of the leading commerce platforms, Shopify has been well-positioned to benefit from this surge in online retail activity. Its comprehensive suite of tools and services enables merchants to efficiently manage their businesses across various channels, providing them with the necessary infrastructure to thrive in today’s digital economy.
Furthermore, Shopify continues to innovate and expand its offerings, addressing emerging trends and customer needs. The company consistently releases updates and new features to enhance user experience, improve inventory management, facilitate secure transactions, and leverage advanced analytics for data-driven decision making.
While short-term financial performance may affect investor sentiment and immediate stock prices, it is crucial to assess the long-term potential of a company like Shopify. As the e-commerce industry continues to evolve and consumer behavior adapts to technological advancements, platforms like Shopify are likely to remain integral to the success of retail businesses worldwide.
Investors considering Shopify should carefully weigh all available information including financial performance, market trends, competitive landscape, and future growth prospects before making any investment decisions. It is always advisable to consult with a qualified financial advisor familiar with individual circumstances for personalized investment advice.
Updated on: 04/12/2023
Debt to equity ratio: Neutral
Price to earnings ratio: Strong Sell
Price to book ratio: Strong Buy
DCF: Strong Buy
8:00 AM (UTC)
Date:04 December, 2023
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Recent Hedge Fund Activity and Analyst Reports Impact Shopify’s Stock Performance
As of September 18, 2023, several hedge funds have made additions or reductions to their stakes in Shopify, a popular software maker. Worth Asset Management LLC increased its holdings in Shopify by 3.6% during the second quarter, now owning 4,834 shares valued at $312,000. Grassi Investment Management also bought a new stake in Shopify during the second quarter worth $238,000.
Harbor Capital Advisors Inc. experienced a significant increase in their holdings of Shopify during the second quarter, with a 26.7% rise that now amounts to 31,201 shares worth $2,016,000. FNY Investment Advisers LLC raised its stake in Shopify by an astonishing 2,400% during the same period and currently holds 6,000 shares valued at $387,000. Capital Investment Advisors LLC purchased a new stake in the company worth $348,000 during the second quarter.
Notably, institutional investors and hedge funds own more than half (60.28%) of Shopify’s stock.
In terms of stock performance, Shopify saw a decrease of $0.49 during midday trading on Monday when it reached $61.89 per share. The trading volume for the day was reported at approximately 747,857 shares compared to an average volume of 15,668,117 shares. The firm’s fifty-day moving average stands at $61.70 while its two-hundred-day moving average is recorded as $56.69.
Shopify Inc., valued at $79.37 billion by market capitalization and with a negative PE ratio of -39.48 and beta of 2.05.
Various analysts have shared their views on SHOP shares through research reports. The Goldman Sachs Group increased their target price from $59 to $65 and assigned a “neutral” rating to the company on August 3rd. Bank of America also raised their price target from $65 to $70 and rated the company as “outperform” on the same day. Similarly, JMP Securities increased their price target from $70 to $72 and gave Shopify an “outperform” rating on August 4th. On the other hand, Morgan Stanley raised their price target from $54 to $59 and assigned an “equal weight” rating to the company on August 3rd. Finally, Mizuho increased their price target from $55 to $65 and rated Shopify as “neutral” on July 24th.
According to Bloomberg.com, Shopify has a consensus rating of “Hold” and an average target price of $65.34.
In conclusion, with ongoing additions or reductions by various hedge funds, Shopify’s stock has experienced fluctuations recently. Investors should consider these factors alongside analyst reports when making decisions related to purchasing or selling shares in Shopify.