Shopify Inc. (NYSE:SHOP) Downgraded to Hold at Zacks Investment Research

Zacks Investment Research cut shares of Shopify Inc. (NYSE:SHOP) (TSE:SH) from a buy rating to a hold rating in a report released on Monday, August 7th.

According to Zacks, “Shopify's second-quarter 2017 results were impressive. The company's year-over-year revenue growth showed that Shopify’s cloud-based, multi-tenant, omni-channel, scalable platform is gaining adoption. The company continues to win new merchants, which surpassed 0.5 million at the end of quarter. The company is benefiting from retail’s rapid transition to mobile and social sales channels. Moreover, availability of Apple Pay and addition of eBay, Amazon and Facebook Messenger as sales channels are significant positives. Shopify has outperformed the broader industry on a year-to-date basis. However, the company’s increasing investments on product development, infrastructure and platform will continue to hurt profitability at least in 2017. We observe that the company is yet to report profit, which doesn’t augur well for investors.”

A number of other equities research analysts have also issued reports on SHOP. Barclays PLC reissued an equal weight rating and set a $90.00 price target (up from $70.00) on shares of Shopify in a research note on Wednesday, August 2nd. Robert W. Baird raised their price target on Shopify from $95.00 to $110.00 and gave the stock an outperform rating in a research note on Wednesday, August 2nd. Canaccord Genuity reissued a buy rating and set a $115.00 price target (up from $90.00) on shares of Shopify in a research note on Wednesday, August 2nd. KeyCorp reaffirmed an overweight rating on shares of Shopify in a research report on Wednesday, August 2nd. Finally, Goldman Sachs Group, Inc. (The) lowered Shopify from a buy rating to a neutral rating and decreased their target price for the company from $100.80 to $96.00 in a research report on Tuesday, June 13th. One analyst has rated the stock with a sell rating, sixteen have given a hold rating, twenty have issued a buy rating and one has given a strong buy rating to the company. The company presently has an average rating of Buy and an average price target of $88.33.

Shopify (SHOP) traded up 1.16% during trading on Monday, hitting $94.58. 988,637 shares of the company’s stock traded hands. The company’s 50 day moving average price is $92.72 and its 200 day moving average price is $79.52. Shopify has a 52-week low of $37.74 and a 52-week high of $105.79. The company’s market cap is $9.32 billion.

Shopify (NYSE:SHOP) (TSE:SH) last announced its earnings results on Tuesday, August 1st. The software maker reported ($0.15) EPS for the quarter, topping the Zacks’ consensus estimate of ($0.20) by $0.05. Shopify had a negative return on equity of 8.26% and a negative net margin of 8.96%. The firm had revenue of $151.70 million during the quarter, compared to analysts’ expectations of $143.94 million. During the same quarter in the previous year, the business earned ($0.04) EPS. The company’s quarterly revenue was up 75.2% on a year-over-year basis. Analysts expect that Shopify will post ($0.05) earnings per share for the current year.

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Several institutional investors have recently made changes to their positions in the stock. Nadler Financial Group Inc. boosted its position in shares of Shopify by 0.9% in the second quarter. Nadler Financial Group Inc. now owns 3,033 shares of the software maker’s stock worth $264,000 after buying an additional 28 shares during the last quarter. Private Advisory Group LLC raised its stake in Shopify by 3.9% in the second quarter. Private Advisory Group LLC now owns 4,391 shares of the software maker’s stock worth $382,000 after buying an additional 164 shares during the period. Advisory Services Network LLC raised its stake in Shopify by 26.6% in the second quarter. Advisory Services Network LLC now owns 1,420 shares of the software maker’s stock worth $123,000 after buying an additional 298 shares during the period. Tocqueville Asset Management L.P. raised its stake in Shopify by 2.1% in the second quarter. Tocqueville Asset Management L.P. now owns 19,200 shares of the software maker’s stock worth $1,668,000 after buying an additional 400 shares during the period. Finally, State of Tennessee Treasury Department raised its stake in Shopify by 1.2% in the second quarter. State of Tennessee Treasury Department now owns 46,703 shares of the software maker’s stock worth $4,058,000 after buying an additional 550 shares during the period. 57.07% of the stock is owned by institutional investors and hedge funds.

Shopify Company Profile

Shopify Inc (Shopify) provides a cloud-based, multi-channel commerce platform designed for small and medium-sized businesses. The Company offers subscription solutions and merchant solutions. The Company’s software is used by merchants to run their business across all of their sales channels, including Web and mobile storefronts, physical retail locations, social media storefronts and marketplaces.

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