Shopify (NASDAQ:SHOP) Stock Price Down 7.1% – Should You Sell?

Shopify Inc. (NASDAQ:SHOP) (TSE:SHOP) shares were down 7.1% during mid-day trading on Monday . The company traded as low as $102.38 and last traded at $102.54. Approximately 18,398,657 shares traded hands during trading, an increase of 62% from the average daily volume of 11,331,143 shares. The stock had previously closed at $110.41.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on SHOP. TD Cowen raised Shopify from a “hold” rating to a “buy” rating and set a $159.00 target price for the company in a research report on Wednesday, February 11th. Benchmark decreased their price target on Shopify from $195.00 to $145.00 and set a “buy” rating for the company in a research note on Tuesday, February 10th. Moffett Nathanson raised shares of Shopify from a “neutral” rating to a “buy” rating and set a $150.00 price objective for the company in a research report on Monday, February 9th. Canaccord Genuity Group decreased their price objective on shares of Shopify from $165.00 to $145.00 and set a “buy” rating for the company in a research report on Wednesday, May 6th. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and issued a $175.00 price objective on shares of Shopify in a report on Thursday, February 12th. Two analysts have rated the stock with a Strong Buy rating, thirty-one have given a Buy rating and ten have given a Hold rating to the stock. According to MarketBeat.com, Shopify currently has a consensus rating of “Moderate Buy” and a consensus price target of $158.42.

Shopify Price Performance

The stock has a market capitalization of $133.72 billion, a PE ratio of 101.53, a P/E/G ratio of 3.11 and a beta of 2.64. The company’s 50 day moving average price is $121.76 and its two-hundred day moving average price is $140.96.

Shopify (NASDAQ:SHOP) (TSE:SHOP) last issued its earnings results 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 return on equity of 12.07% and a net margin of 10.77%.The company had revenue of $3.17 billion during the quarter, compared to analysts’ expectations of $3.08 billion. Analysts forecast that Shopify Inc. will post 1.36 earnings per share for the current year.

Institutional Investors Weigh In On Shopify

Hedge funds have recently bought and sold shares of the stock. Kingdom Financial Group LLC. purchased a new stake in shares of Shopify during the fourth quarter worth approximately $26,000. Curio Wealth LLC acquired a new position in Shopify during the 4th quarter worth approximately $27,000. Evolution Wealth Management Inc. increased its position in shares of Shopify by 203.9% in the 1st quarter. Evolution Wealth Management Inc. now owns 231 shares of the software maker’s stock valued at $27,000 after purchasing an additional 155 shares during the last quarter. Mowery & Schoenfeld Wealth Management LLC acquired a new stake in shares of Shopify in the 4th quarter valued at $29,000. Finally, Lodestone Wealth Management LLC purchased a new stake in shares of Shopify during the 4th quarter worth $31,000. Institutional investors and hedge funds own 69.27% of the company’s stock.

About Shopify

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.