On October 5, 2023, Diligent Investors LLC announced that it had reduced its holdings in Shopify Inc. (NYSE:SHOP) (TSE:SHOP) by 38.0% during the second quarter of this year. According to their Form 13F filing with the SEC, the firm sold off 2,600 shares of the software maker’s stock, resulting in their ownership decreasing to 4,242 shares. At the end of the quarter, Diligent Investors LLC’s holdings in Shopify were valued at $274,000.
Shopify (NYSE:SHOP) (TSE:SHOP) recently published its quarterly earnings data on August 2nd. The company reported earnings per share of ($0.08) for the quarter, missing analysts’ consensus estimates of ($0.06) by ($0.02). Revenue for the same period amounted to $1.69 billion compared to analysts’ expectations of $1.63 billion. Furthermore, Shopify exhibited a negative net margin of 32.13% and a negative return on equity of 5.36%. Analysts predict that Shopify Inc will post an earnings per share value of -0.01 for the current year.
Shopify Inc is categorized as a commerce company and operates a commerce platform along with services across various regions including Canada, the United States, Europe, the Middle East, Africa, Asia Pacific, and Latin America. The primary objective of their platform is to enable merchants to showcase and effectively sell their products through numerous sales channels such as web and mobile storefronts, physical retail locations, pop-up shops, native mobile apps, social media storefronts, buy buttons and marketplaces.
In addition to facilitating sales channels, Shopify’s platform offers several functionalities designed to support merchants in managing product inventory and information effectively allowing them to process orders and payments as well as fulfill and deliver those orders promptly and efficiently.
Furthermore, Shopify’s platform provides merchants with the ability to build and cultivate customer relationships through analytics and reporting tools that enable businesses to gain insights into consumer behavior, preferences, and purchasing patterns.
Subsequently, Shopify’s platform also offers features for handling financial transactions including managing cash flow, payments, and financing options. Overall, Shopify Inc continues to position itself as a comprehensive e-commerce solution provider.
[bs_slider_forecast ticker=”CVS”]
Hedge Funds and Institutional Investors Show Continued Interest in Shopify Stock
On October 5, 2023, it was reported that several hedge funds and institutional investors had made changes to their holdings in the software company Shopify. Vident Investment Advisory LLC increased its holdings by 5.3% during the first quarter, now owning 661 shares valued at $447,000. Interchange Capital Partners LLC also increased its holdings by 7.1% during the same period, now owning 511 shares worth $345,000. Ancora Advisors LLC saw a 6.2% increase in its holdings, now owning 1,177 shares worth $1,302,000. SVB Wealth LLC and Industrial Alliance Investment Management Inc. also increased their holdings by 14.0% and 292.9% respectively during the first quarter.
These changes in holdings indicate a continued interest from hedge funds and institutional investors in Shopify’s stock. Currently, approximately 60.28% of the stock is owned by these entities.
NYSE SHOP opened at $52.56 on Thursday and has shown stability with a 50-day simple moving average of $58.57 and a two-hundred day simple moving average of $57.60. The company has a market capitalization of $67.41 billion and operates with a debt-to-equity ratio of 0.15.
Research analysts have been closely following Shopify and have recently issued reports regarding the company’s performance in the market. Mizuho raised its price target from $55 to $65 and gave Shopify a “neutral” rating in their report on July 24th. Canaccord Genuity Group upgraded Shopify from a “hold” to a “buy” rating with a price target increase from $60 to $70 on August 31st.
JMP Securities maintained its “market outperform” rating for Shopify with a price target of $72 on September 26th while Morgan Stanley increased its price target from $54 to $59 and gave the company an “equal weight” rating on August 3rd. Moffett Nathanson also upgraded Shopify from a “market perform” rating to an “outperform” rating with a set price target of $76 on July 24th.
In total, two equities research analysts have rated the stock as a sell, twenty-one as hold, and eighteen as buy. The consensus rating for Shopify, according to data from Bloomberg.com, is “Hold,” with a consensus target price of $65.37.
Overall, it seems that Shopify continues to attract the attention of hedge funds and institutional investors, despite mixed opinions from research analysts. As the market moves forward, it will be interesting to see how these factors impact the stock’s performance.
To read our latest stock report on SHOP and stay updated on Shopify’s progress, visit our website.