Is Shopify Inc (NYSE: SHOP) Stock Ready For A Higher Run In Its Share Price?

In the latest trading session, 2.4 million Shopify Inc (NYSE:SHOP) shares changed hands as the company’s beta touched 2.20. With the company’s most recent per share price at $68.27 changed hands at -$1.24 or -1.79% at last look, the market valuation stands at $87.71B. SHOP’s current price is a discount, trading about -4.63% off its 52-week high of $71.43. The share price had its 52-week low at $32.35, which suggests the last value was 52.61% up since then. When we look at Shopify Inc’s average trading volume, we note the 10-day average is 10.98 million shares, with the 3-month average coming to 11.47 million.

Analysts gave the Shopify Inc (SHOP) stock a consensus recommendation rating of an Overweight, calculated at a mean rating of 2.18. If we narrow down to specifics, the data shows that 0 out of 50 analysts rate the stock as a Sell, with a further 3 assigning it an Overweight rating. Of the remaining, 28 recommended SHOP as a Hold, 19 felt it is a Buy and 0 rated the stock as Underweight. Shopify Inc’s EPS for the current quarter is expected to be $0.31.

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Shopify Inc (NYSE:SHOP) trade information

Instantly SHOP was in red as seen in intraday trades today. With action 4.19%, the performance over the past five days has been green. The drop to weekly highs of 70.16 on Monday, 11/20/23 subtracted -1.79% to the stock’s daily price. The company’s shares are showing year-to-date upside of 96.68%, with the 5-day performance at 4.19% in the green. However, in the 30-day time frame, Shopify Inc (NYSE:SHOP) is 33.86% up. Looking at the short shares, we see there were 24.56 million shares sold at short interest cover period of 2.25 days.

The consensus price target for the stock as assigned by Wall Street analysts is $68.80, meaning bulls need an upside of 0.77% from its recent market value. According to analyst projections, SHOP’s forecast low is $53.00 with $82.00 as the target high. To hit the forecast high, the stock’s price needs a -20.11% plunge from its current level, while the stock would need to tank 22.37% for it to hit the projected low.

Shopify Inc (SHOP) estimates and forecasts

Data shows that the Shopify Inc share is performing relatively much better than most of its peers within the same industry. As can be gleaned from the statistics, the company’s share value shot 17.04% over the past 6 months, a 1,250.00% in annual growth rate that is considerably higher than the industry average of 19.60%. Moreover, analysts have looked to higher expectations by upgrading its fiscal year 2023 revenue estimates. The rating firms predict current quarter revenue for Shopify Inc will rise 342.90%, while the growth in revenue is estimated to hit 2,000.00% for the next quarter. Year-over-year growth is forecast to reach 24.70% up from the last financial year.

Consensus estimates given by 36 financial analysts project the company’s revenue in the current quarter to hit an average of $2.07 billion. 29 analysts are of the opinion that Shopify Inc’s revenue for the quarter ending Mar 2024 will be $1.81 billion. The company’s revenue for the corresponding quarters a year ago was $1.73 billion and $1.43 billion respectively. According to analysts, the company will likely register a growth in its current quarter sales, forecast at 19.20%. The estimates for the next quarter sales put growth at 26.20%.

Looking at the company’s year-on-year earnings, data shows that the past 5-year has an earnings growth rate of -130.50%. The 2023 estimates are for Shopify Inc earnings to increase by 1614.31%.

SHOP Dividends

Shopify Inc is expected to release its next quarterly earnings report between February 13 and February 19.

Shopify Inc (NYSE:SHOP)’s Major holders

If we look at who the major shareholders are, we find that insiders hold 0.22% of Shopify Inc shares while 65.87% of the shares are in the hands of institutional holders. The share float percentage for the stock currently stands at 66.01%. There are 65.87% institutions holding the Shopify Inc stock share, with Baillie Gifford and Company the top institutional holder. As of Sep 29, 2023, the company held 5.21% of the shares, roughly 62.75 million SHOP shares worth $4.31 billion.

Morgan Stanley holds the second largest percentage of outstanding shares, with 4.96% or 59.65 million shares worth $4.1 billion as of Sep 29, 2023.

Among Mutual Funds, the top two as of Sep 29, 2023 were Europacific Growth Fund and Growth Fund Of America Inc. With 26.31 million shares estimated at $1.81 billion under it, the former controlled 2.19% of total outstanding shares. On the other hand, Growth Fund Of America Inc held about 1.47% of the shares, roughly 17.66 million shares worth around $1.21 billion.

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