Shopify Inc. (NYSE:SHOP) Downgraded to Hold at Zacks Investment Research
Shopify Inc. (NYSE:SHOP) (TSE:SH) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Monday.
According to Zacks, “Shopify's second-quarter 2017 results were impressive. The company's year-over-year revenue growth showed that Shopify’s cloud-based, multi-tenant, omni-channel, scalable platform is gaining adoption. The company continues to win new merchants, which surpassed 0.5 million at the end of quarter. The company is benefiting from retail’s rapid transition to mobile and social sales channels. Moreover, availability of Apple Pay and addition of eBay, Amazon and Facebook Messenger as sales channels are significant positives. Shopify has outperformed the broader industry on a year-to-date basis. However, the company’s increasing investments on product development, infrastructure and platform will continue to hurt profitability at least in 2017. We observe that the company is yet to report profit, which doesn’t augur well for investors.”
A number of other equities analysts have also recently weighed in on SHOP. Vetr cut Shopify from a “strong-buy” rating to a “buy” rating and set a $78.85 price target on the stock. in a research note on Friday, April 14th. Wedbush reissued an “outperform” rating and issued a $85.00 price target (up previously from $75.00) on shares of Shopify in a research note on Friday, April 21st. Mackie reissued a “buy” rating and issued a $95.00 price target (up previously from $70.00) on shares of Shopify in a research note on Sunday, April 23rd. Roth Capital set a $82.00 price target on Shopify and gave the stock a “buy” rating in a research note on Tuesday, April 25th. Finally, Maxim Group reissued a “hold” rating on shares of Shopify in a research note on Tuesday, April 25th. One equities research analyst has rated the stock with a sell rating, seventeen have issued a hold rating and nineteen have issued a buy rating to the stock. The stock currently has an average rating of “Hold” and an average target price of $88.33.
Shares of Shopify (NYSE SHOP) traded up 1.67% during midday trading on Monday, reaching $97.89. 774,499 shares of the company were exchanged. The firm’s 50 day moving average is $90.58 and its 200-day moving average is $75.95. Shopify has a 52-week low of $36.36 and a 52-week high of $105.79. The company’s market capitalization is $9.65 billion.
Shopify (NYSE:SHOP) (TSE:SH) last released its earnings results on Tuesday, August 1st. The software maker reported ($0.15) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.20) by $0.05. The firm had revenue of $151.70 million for the quarter, compared to analyst estimates of $143.94 million. Shopify had a negative return on equity of 8.26% and a negative net margin of 8.96%. Shopify’s revenue was up 75.2% compared to the same quarter last year. During the same period in the previous year, the company earned ($0.04) earnings per share. On average, equities analysts forecast that Shopify will post ($0.05) earnings per share for the current fiscal year.
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Hedge funds and other institutional investors have recently bought and sold shares of the company. Seven Bridges Advisors LLC purchased a new position in Shopify during the second quarter worth about $120,000. FNY Partners Fund LP purchased a new position in Shopify during the first quarter worth about $102,000. Toronto Dominion Bank increased its position in Shopify by 148.1% in the first quarter. Toronto Dominion Bank now owns 1,630 shares of the software maker’s stock worth $111,000 after buying an additional 973 shares during the last quarter. SG Americas Securities LLC purchased a new position in Shopify during the first quarter worth about $116,000. Finally, FNY Managed Accounts LLC purchased a new position in Shopify during the first quarter worth about $136,000. Institutional investors and hedge funds own 61.47% of the company’s stock.
Shopify Company Profile
Shopify Inc (Shopify) provides a cloud-based, multi-channel commerce platform designed for small and medium-sized businesses. The Company offers subscription solutions and merchant solutions. The Company’s software is used by merchants to run their business across all of their sales channels, including Web and mobile storefronts, physical retail locations, social media storefronts and marketplaces.
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