Shopify (SHOP) Stock Rating Lowered by Zacks Investment Research

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Shopify (NYSE:SHOP) (TSE:SHOP) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued 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.”

Other research analysts have also recently issued reports about the company. Roth Capital increased their price target on Shopify from $275.00 to $225.00 in a research note on Tuesday, April 30th. Mackie increased their price target on Shopify from $170.00 to $210.00 and gave the company a “buy” rating in a research note on Wednesday, February 13th. DA Davidson increased their price target on Shopify from $150.00 to $210.00 and gave the company a “buy” rating in a research note on Wednesday, February 13th. Canaccord Genuity raised their target price on Shopify from $165.00 to $190.00 and gave the stock a “buy” rating in a research report on Tuesday, February 12th. Finally, Guggenheim set a $200.00 target price on Shopify and gave the stock a “buy” rating in a research report on Thursday, February 14th. One investment analyst has rated the stock with a sell rating, six have assigned a hold rating and fourteen have assigned a buy rating to the stock. The company has a consensus rating of “Buy” and a consensus price target of $237.71.

Shares of SHOP stock traded up $10.57 during trading hours on Thursday, reaching $274.73. The company’s stock had a trading volume of 59,383 shares, compared to its average volume of 1,611,968. The company has a market cap of $27.68 billion, a PE ratio of -450.38 and a beta of 1.57. Shopify has a fifty-two week low of $117.64 and a fifty-two week high of $266.72. The company has a debt-to-equity ratio of 0.05, a quick ratio of 12.57 and a current ratio of 12.56.

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, beating the Zacks’ consensus estimate of ($0.35) by $0.44. The firm had revenue of $320.50 million for 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 company’s revenue was up 49.6% compared to the same quarter last year. During the same quarter last year, the business posted $0.04 EPS. On average, equities analysts predict that Shopify will post -1 EPS for the current fiscal year.

A number of large investors have recently made changes to their positions in SHOP. Capital Financial Planning LLC bought a new position in shares of Shopify in the 4th quarter worth about $26,000. We Are One Seven LLC bought a new position in shares of Shopify in the 4th quarter worth about $27,000. Murphy Pohlad Asset Management LLC bought a new position in shares of Shopify in the 4th quarter worth about $27,000. Optimum Investment Advisors bought a new position in shares of Shopify in the 4th quarter worth about $28,000. Finally, Quad Cities Investment Group LLC bought a new position in shares of Shopify in the 4th quarter worth about $28,000. 67.14% of the stock is owned by institutional investors and hedge funds.

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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