Shopify (NASDAQ:SHOP) Stock Price Expected to Rise, UBS Group Analyst Says

Shopify (NASDAQ:SHOP) (TSE:SHOP) had its target price upped by stock analysts at UBS Group from $145.00 to $160.00 in a report issued on Wednesday, Benzinga reports. The brokerage currently has a “neutral” rating on the software maker’s stock. UBS Group‘s target price suggests a potential upside of 4.55% from the company’s previous close.

Other analysts have also recently issued research reports about the stock. BMO Capital Markets set a $165.00 price objective on shares of Shopify and gave the company an “outperform” rating in a research report on Thursday, August 6th. Barclays set a $145.00 price target on shares of Shopify and gave the company an “equal weight” rating in a research report on Thursday, August 6th. The Goldman Sachs Group lifted their price target on shares of Shopify from $170.00 to $194.00 and gave the stock a “buy” rating in a research note on Thursday, August 6th. Phillip Securities lowered shares of Shopify from a “strong-buy” rating to a “moderate buy” rating in a report on Monday, August 17th. Finally, Truist Financial set a $180.00 price objective on shares of Shopify and gave the company a “buy” rating in a research note on Wednesday, August 5th. One research analyst has rated the stock with a Strong Buy rating, thirty-eight have assigned a Buy rating and ten have assigned a Hold rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $179.13.

Shopify Price Performance

Shopify stock traded up $10.46 during midday trading on Wednesday, hitting $153.03. 13,142,041 shares of the company’s stock were exchanged, compared to its average volume of 10,298,156. Shopify has a 52-week low of $94.00 and a 52-week high of $180.88. The stock has a 50-day moving average price of $152.77 and a two-hundred day moving average price of $130.13. The company has a debt-to-equity ratio of 0.01, a quick ratio of 5.35 and a current ratio of 5.35. The company has a market cap of $196.89 billion, a P/E ratio of 103.40, a PEG ratio of 3.23 and a beta of 2.65.

Shopify (NASDAQ:SHOP) (TSE:SHOP) last released its quarterly earnings results on Tuesday, November 3rd. The software maker reported $0.49 earnings per share for the quarter, beating the consensus estimate of $0.33 by $0.16. The firm had revenue of $3.74 billion for the quarter. Shopify had a return on equity of 12.58% and a net margin of 14.53%. The business’s revenue was up 31.6% on a year-over-year basis. During the same period in the previous year, the business earned $0.34 EPS. On average, equities research analysts forecast that Shopify will post 1.46 earnings per share for the current year.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the company. Signal Advisors Wealth LLC increased its position in shares of Shopify by 0.5% in the third quarter. Signal Advisors Wealth LLC now owns 12,589 shares of the software maker’s stock valued at $1,867,000 after acquiring an additional 60 shares during the period. Canopy Partners LLC raised its stake in shares of Shopify by 3.0% during the third quarter. Canopy Partners LLC now owns 2,109 shares of the software maker’s stock valued at $313,000 after acquiring an additional 61 shares during the last quarter. Midway Capital Research & Management boosted its holdings in shares of Shopify by 0.5% during the third quarter. Midway Capital Research & Management now owns 14,008 shares of the software maker’s stock worth $2,077,000 after purchasing an additional 65 shares during the period. Eagle Wealth Advisors LLC boosted its holdings in shares of Shopify by 3.0% during the third quarter. Eagle Wealth Advisors LLC now owns 2,330 shares of the software maker’s stock worth $346,000 after purchasing an additional 67 shares during the period. Finally, Asset One Wealth Management LLC grew its stake in shares of Shopify by 0.3% in the third quarter. Asset One Wealth Management LLC now owns 24,060 shares of the software maker’s stock worth $3,568,000 after purchasing an additional 69 shares during the last quarter. 69.27% of the stock is owned by hedge funds and other institutional investors.

Shopify News Roundup

Here are the key news stories impacting Shopify this week:

• Positive Sentiment: Shopify reported Q3 revenue of about $3.74 billion, up 31.6% year over year, and earnings per share above estimates. Free cash flow rose 61% to $816 million, while operating income increased 66%. Management also highlighted accelerating AI-driven shopping traffic and growing Shop Pay use. Q3 earnings and revenue report
• Positive Sentiment: ARK Invest bought roughly $12.5 million of Shopify shares during the selloff, signaling confidence from a prominent growth investor. National Bank Financial raised its price target to $185, while RBC reiterated an Outperform rating and $200 target. ARK Invest purchase report
• Neutral Sentiment: The positive results and analyst support are helping sentiment recover, but the rebound follows a sharp reaction to earnings; unusually high call-option activity also points to increased trading interest rather than a clear change in fundamentals.
• Negative Sentiment: Investors focused on Q3 gross merchandise volume of $119.1 billion, slightly below expectations, along with subscription revenue and reported revenue coming in short of some analyst forecasts. That matters because Shopify’s valuation leaves little room for disappointing growth metrics. Analysis of the Q3 miss
• Negative Sentiment: The holiday quarter brings execution risk: investors will watch whether spending and merchant activity meet expectations, and whether growth translates into sustained margins and cash generation.

About Shopify

Shopify Inc is a commerce technology company that provides tools for businesses of various sizes to start, operate and grow online and in physical retail environments. Its platform supports online storefronts, product and inventory management, order processing, marketing, analytics and customer engagement.

The company offers subscription-based plans and merchant solutions, including Shopify Payments, Shopify POS, Shopify Capital and tools for shipping, checkout and fulfillment. Shopify also supports sales through multiple channels, such as merchants’ own websites, mobile devices, social media and third-party marketplaces.

Shopify was founded in 2006 by Tobias Lütke, Daniel Weinand and Scott Lake after the founders developed an online store for snowboarding equipment.