Shopify (NYSE:SHOP) Shares Gap Up Following Better-Than-Expected Earnings

Shares of Shopify Inc. (NYSE:SHOP) (TSE:SHOP) gapped up before the market opened on Tuesday following a better than expected earnings announcement. The stock had previously closed at $89.99, but opened at $107.52. Shopify shares last traded at $109.84, with a volume of 16,235,688 shares changing hands.

The software maker reported $0.27 EPS for the quarter, topping analysts’ consensus estimates of $0.18 by $0.09. Shopify had a return on equity of 11.94% and a net margin of 16.84%. The company had revenue of $2.16 billion during the quarter, compared to analyst estimates of $2.11 billion.

Analyst Ratings Changes

A number of analysts have commented on the company. Royal Bank of Canada lifted their target price on Shopify from $100.00 to $130.00 and gave the stock an “outperform” rating in a report on Wednesday. Truist Financial increased their price target on shares of Shopify from $65.00 to $110.00 and gave the stock a “hold” rating in a research report on Wednesday. Barclays upped their price target on Shopify from $70.00 to $93.00 and gave the stock an “equal weight” rating in a research report on Wednesday. Benchmark reissued a “hold” rating on shares of Shopify in a report on Tuesday, August 6th. Finally, UBS Group upped their price target on shares of Shopify from $71.00 to $75.00 and gave the stock a “neutral” rating in a research report on Thursday, August 8th. One analyst has rated the stock with a sell rating, seventeen have issued a hold rating, twenty-three have issued a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $94.95.

Institutional Trading of Shopify

Several hedge funds and other institutional investors have recently made changes to their positions in SHOP. FORA Capital LLC acquired a new position in Shopify during the 3rd quarter valued at about $223,000. Glenmede Trust Co. NA grew its stake in shares of Shopify by 41.7% during the third quarter. Glenmede Trust Co. NA now owns 209,581 shares of the software maker’s stock worth $16,796,000 after acquiring an additional 61,697 shares during the last quarter. Townsquare Capital LLC raised its position in shares of Shopify by 32.8% in the 3rd quarter. Townsquare Capital LLC now owns 481,447 shares of the software maker’s stock valued at $38,583,000 after purchasing an additional 118,961 shares during the last quarter. Brooklyn Investment Group acquired a new position in Shopify during the 3rd quarter valued at approximately $33,000. Finally, D.A. Davidson & CO. grew its holdings in shares of Shopify by 13.4% during the third quarter. D.A. Davidson & CO. now owns 83,448 shares of the software maker’s stock valued at $6,688,000 after buying an additional 9,839 shares during the last quarter. Hedge funds and other institutional investors own 69.27% of the company’s stock.

Shopify Stock Performance

The stock has a market capitalization of $148.56 billion, a price-to-earnings ratio of 107.60, a P/E/G ratio of 3.64 and a beta of 2.36. The company has a current ratio of 7.32, a quick ratio of 7.32 and a debt-to-equity ratio of 0.10. The firm has a 50-day moving average of $79.47 and a 200-day moving average of $70.18.

About Shopify

Shopify Inc, a commerce company, provides a commerce platform and services in Canada, the United States, Europe, the Middle East, Africa, the Asia Pacific, Australia, China, and Latin America. The company’s platform enables merchants to displays, manages, markets, and sells its products through various sales channels, including web and mobile storefronts, physical retail locations, pop-up shops, social media storefronts, native mobile apps, buy buttons, and marketplaces; and enables to manage products and inventory, process orders and payments, fulfill and ship orders, new buyers and build customer relationships, source products, leverage analytics and reporting, manage cash, payments and transactions, and access financing.