Shopify (NYSE:SHOP) Shares Gap Down – What’s Next?

Shares of Shopify Inc. (NYSE:SHOP) (TSE:SHOP) gapped down before the market opened on Thursday . The stock had previously closed at $100.65, but opened at $87.33. Shopify shares last traded at $85.61, with a volume of 6,076,652 shares.

Analyst Ratings Changes

Several research analysts have weighed in on SHOP shares. Morgan Stanley increased their price target on shares of Shopify from $126.00 to $144.00 and gave the company an “overweight” rating in a report on Wednesday, February 12th. Canaccord Genuity Group boosted their price target on Shopify from $125.00 to $140.00 and gave the company a “buy” rating in a research note on Wednesday, February 12th. Barclays upped their price objective on Shopify from $93.00 to $100.00 and gave the company an “equal weight” rating in a report on Wednesday, February 12th. UBS Group lifted their target price on Shopify from $110.00 to $125.00 and gave the stock a “neutral” rating in a report on Wednesday, February 12th. Finally, Scotiabank raised their price target on shares of Shopify from $115.00 to $120.00 and gave the stock a “sector perform” rating in a research report on Wednesday, February 12th. One analyst has rated the stock with a sell rating, fifteen have given a hold rating, twenty-four have assigned a buy rating and one has issued a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $126.31.

Shopify Stock Performance

The stock has a market cap of $99.56 billion, a P/E ratio of 49.61, a price-to-earnings-growth ratio of 4.82 and a beta of 2.81. The firm’s fifty day simple moving average is $108.67 and its 200-day simple moving average is $101.22.

Shopify (NYSE:SHOP) (TSE:SHOP) last released its earnings results on Tuesday, February 11th. The software maker reported $0.34 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.44 by ($0.10). Shopify had a net margin of 22.74% and a return on equity of 12.00%. Analysts predict that Shopify Inc. will post 1.12 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Shopify

Several large investors have recently added to or reduced their stakes in the business. Integrated Wealth Concepts LLC grew its position in shares of Shopify by 2.1% during the 3rd quarter. Integrated Wealth Concepts LLC now owns 32,078 shares of the software maker’s stock worth $2,571,000 after buying an additional 655 shares during the period. IHT Wealth Management LLC grew its holdings in Shopify by 13.6% in the third quarter. IHT Wealth Management LLC now owns 8,472 shares of the software maker’s stock worth $678,000 after purchasing an additional 1,011 shares during the period. Royal London Asset Management Ltd. increased its stake in Shopify by 1.6% in the third quarter. Royal London Asset Management Ltd. now owns 329,882 shares of the software maker’s stock valued at $26,437,000 after purchasing an additional 5,108 shares in the last quarter. Quantinno Capital Management LP raised its holdings in shares of Shopify by 47.0% during the third quarter. Quantinno Capital Management LP now owns 38,951 shares of the software maker’s stock valued at $3,122,000 after purchasing an additional 12,455 shares during the period. Finally, Wahed Invest LLC boosted its position in shares of Shopify by 18.4% during the 3rd quarter. Wahed Invest LLC now owns 57,624 shares of the software maker’s stock worth $4,618,000 after purchasing an additional 8,960 shares in the last quarter. Institutional investors and hedge funds own 69.27% of the company’s stock.

Shopify Company Profile

Shopify Inc, a commerce company, provides a commerce platform and services in Canada, the United States, Europe, the Middle East, Africa, the Asia Pacific, Australia, China, and Latin America. The company’s platform enables merchants to displays, manages, markets, and sells its products through various sales channels, including web and mobile storefronts, physical retail locations, pop-up shops, social media storefronts, native mobile apps, buy buttons, and marketplaces; and enables to manage products and inventory, process orders and payments, fulfill and ship orders, new buyers and build customer relationships, source products, leverage analytics and reporting, manage cash, payments and transactions, and access financing.