Capital World Investors Cuts Holdings in Shopify Inc. $SHOP

Capital World Investors lowered its position in Shopify Inc. (NASDAQ:SHOP) (TSE:SHOP) by 10.8% in the fourth quarter, according to the company in its most recent disclosure with the SEC. The firm owned 47,822,705 shares of the software maker’s stock after selling 5,789,891 shares during the period. Shopify comprises approximately 1.0% of Capital World Investors’ investment portfolio, making the stock its 18th biggest position. Capital World Investors owned approximately 3.67% of Shopify worth $7,698,323,000 at the end of the most recent quarter.

Other large investors have also modified their holdings of the company. M&T Bank Corp raised its position in shares of Shopify by 37.1% in the fourth quarter. M&T Bank Corp now owns 81,082 shares of the software maker’s stock worth $13,051,000 after acquiring an additional 21,945 shares during the period. Triasima Portfolio Management inc. increased its stake in shares of Shopify by 11.0% during the fourth quarter. Triasima Portfolio Management inc. now owns 182,338 shares of the software maker’s stock worth $29,398,000 after purchasing an additional 18,028 shares in the last quarter. Assetmark Inc. increased its stake in shares of Shopify by 6.7% during the fourth quarter. Assetmark Inc. now owns 213,583 shares of the software maker’s stock worth $34,380,000 after purchasing an additional 13,415 shares in the last quarter. SG Americas Securities LLC increased its stake in shares of Shopify by 286.6% during the fourth quarter. SG Americas Securities LLC now owns 508,723 shares of the software maker’s stock worth $81,889,000 after purchasing an additional 377,129 shares in the last quarter. Finally, Prospera Financial Services Inc increased its stake in shares of Shopify by 163.9% during the third quarter. Prospera Financial Services Inc now owns 63,529 shares of the software maker’s stock worth $9,441,000 after purchasing an additional 39,454 shares in the last quarter. Institutional investors and hedge funds own 69.27% of the company’s stock.

Wall Street Analyst Weigh In

A number of analysts have recently commented on SHOP shares. DZ Bank raised shares of Shopify from a “hold” rating to a “strong-buy” rating in a research note on Monday, February 16th. Cantor Fitzgerald reissued a “neutral” rating and set a $126.00 target price (down from $181.00) on shares of Shopify in a research note on Thursday, February 12th. ATB Cormark Capital Markets raised shares of Shopify from a “sector perform” rating to an “outperform” rating in a research note on Tuesday, February 10th. TD Cowen raised shares of Shopify from a “hold” rating to a “buy” rating and set a $159.00 target price for the company in a research note on Wednesday, February 11th. Finally, Needham & Company LLC reissued a “buy” rating and set a $180.00 target price on shares of Shopify in a research note on Tuesday, May 5th. Two analysts have rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating and ten have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $157.17.

Shopify Trading Down 5.6%

Shares of NASDAQ SHOP opened at $109.54 on Friday. Shopify Inc. has a 12-month low of $94.00 and a 12-month high of $182.19. The stock has a market cap of $142.15 billion, a PE ratio of 108.46, a P/E/G ratio of 3.07 and a beta of 2.60. The company has a 50-day moving average of $114.55 and a 200 day moving average of $132.80.

Shopify (NASDAQ:SHOP) (TSE:SHOP) last announced its quarterly earnings data on Tuesday, May 5th. The software maker reported $999.00 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.22 by $998.78. Shopify had a net margin of 10.77% and a return on equity of 12.07%. The company had revenue of $3.17 billion during the quarter, compared to analysts’ expectations of $3.08 billion. On average, sell-side analysts forecast that Shopify Inc. will post 1.36 EPS for the current fiscal year.

Shopify Profile

Shopify is a Canadian commerce technology company that provides a cloud-based platform for businesses to create, manage and scale online and physical retail stores. Its core offering is a software-as-a-service e-commerce platform that enables merchants to build customizable storefronts, manage product catalogs, process orders, and handle inventory. Shopify also supports omnichannel selling through integrated point-of-sale (POS) systems for in-person transactions.

Beyond storefront software, Shopify offers a range of merchant services and tools designed to simplify commerce operations.