Shopify Sees Unusually High Options Volume (NASDAQ:SHOP)

Shopify Inc. (NASDAQ:SHOP) (TSE:SHOP) was the recipient of unusually large options trading activity on Monday. Stock traders bought 100,589 call options on the company. This is an increase of approximately 97% compared to the average volume of 50,948 call options.

Shopify News Roundup

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Shopify expanded its commerce ecosystem with a new native integration with DoorDash, allowing U.S. brick-and-mortar merchants to sell in-store products on the DoorDash marketplace with synced inventory and streamlined setup. This could support merchant adoption and deepen Shopify’s omnichannel offering. Shopify (SHOP) Opens DoorDash To US Retailers With Direct Selling Integration
• Positive Sentiment: National Bank Financial raised its price target on Shopify to $155 and reiterated an outperform view, signaling continued analyst confidence in the company’s growth outlook. Analyst rating update
• Positive Sentiment: Unusually heavy call-option buying suggests some traders are positioning for further upside in SHOP ahead of potential catalysts. Options activity report
• Positive Sentiment: Morgan Stanley said sentiment on software stocks has become “too negative,” implying Shopify could rebound if investors rotate back into high-quality software names. Morgan Stanley software stock commentary
• Neutral Sentiment: Shopify remains one of Zacks’ most watched stocks and was highlighted as a long-term idea, but these pieces are mostly visibility/attention items rather than fresh fundamental news. Shopify is Attracting Investor Attention Why Shopify is a Top Stock for the Long-Term
• Negative Sentiment: The stock traded lower in the latest session, reflecting ongoing pressure even as the broader market moved higher. Shopify Stock Sinks As Market Gains

Institutional Trading of Shopify

Several large investors have recently modified their holdings of the business. Northside Capital Management LLC purchased a new position in shares of Shopify during the 2nd quarter worth approximately $781,000. Canvas Wealth Advisors LLC lifted its stake in Shopify by 1.1% in the 2nd quarter. Canvas Wealth Advisors LLC now owns 8,356 shares of the software maker’s stock valued at $954,000 after buying an additional 93 shares in the last quarter. Fiduciary Financial Group LLC purchased a new stake in Shopify in the 2nd quarter valued at approximately $200,000. Doliver Advisors LP grew its holdings in Shopify by 13.3% during the 2nd quarter. Doliver Advisors LP now owns 11,158 shares of the software maker’s stock valued at $1,274,000 after buying an additional 1,310 shares during the last quarter. Finally, Bay Colony Advisory Group Inc d b a Bay Colony Advisors grew its holdings in Shopify by 387.2% during the 2nd quarter. Bay Colony Advisory Group Inc d b a Bay Colony Advisors now owns 19,347 shares of the software maker’s stock valued at $2,209,000 after buying an additional 15,376 shares during the last quarter. 69.27% of the stock is currently owned by institutional investors and hedge funds.

Shopify Trading Down 1.2%

Shares of NASDAQ SHOP opened at $123.03 on Wednesday. The stock has a market cap of $159.65 billion, a price-to-earnings ratio of 121.81, a PEG ratio of 2.70 and a beta of 2.58. Shopify has a 52 week low of $94.00 and a 52 week high of $182.19. The company’s 50-day moving average price is $113.37 and its 200 day moving average price is $122.81.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on the stock. Rothschild & Co Redburn set a $130.00 target price on shares of Shopify and gave the stock a “neutral” rating in a research report on Tuesday. Jefferies Financial Group upgraded shares of Shopify from a “hold” rating to a “buy” rating and lifted their price target for the company from $140.00 to $160.00 in a research report on Sunday, July 12th. Zacks Research raised Shopify from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, July 7th. Piper Sandler restated an “overweight” rating and issued a $150.00 price target (down from $165.00) on shares of Shopify in a report on Tuesday, May 5th. Finally, UBS Group reaffirmed a “neutral” rating on shares of Shopify in a research note on Thursday, May 28th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-two have assigned a Buy rating and ten have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $157.86.

Shopify Company 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.