Shopify Inc. [NYSE: SHOP] surged by $83.21 during the normal trading session on Wednesday and reaching a high of $1,164.166 during the day while it closed the day at $1157.31. The company report on December 1, 2020 that Shopify Merchants Break Records with $5.1+ Billion in Worldwide Sales over Black Friday/Cyber Monday Weekend.
Sales demonstrate the resilience of small and independent businesses.
Shopify Inc. (NYSE:SHOP)(TSX:SHOP), a leading global commerce company, announced Black Friday/Cyber Monday weekend results, with sales of $5.1+ billion from the more than one million Shopify-powered brands around the world. From November 27 through November 30, total sales grew by 76% from the $2.9+ billion reported for Black Friday/Cyber Monday weekend in 2019, a record that was surpassed this year on Saturday, November 28, at 5:00pm ET.
Shopify Inc. stock has also gained 11.47% of its value over the past 7 days. However, SHOP stock has inclined by 32.91% in the 3 months of the year. Over the past six months meanwhile, it has gained 34.02% and gained 191.09% year-on date.
The market cap for SHOP stock reached $142.36 billion, with 120.51 million shares outstanding and 109.58 million shares in the current float. Compared to the average trading volume of 1.60M shares, SHOP reached a trading volume of 3074086 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here’s what leading stock market gurus have to say about Shopify Inc. [SHOP]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for SHOP shares is $1117.56 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on SHOP stock is a recommendation set at 2.50. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Cleveland Research have made an estimate for Shopify Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on December 04, 2020. The new note on the price target was released on December 02, 2020, representing the official price target for Shopify Inc. stock. Previously, the target price had yet another raise from $1150 to $1250, while Jefferies kept a Buy rating on SHOP stock. On October 06, 2020, analysts increased their price target for SHOP shares from 1150 to 1250.
The Average True Range (ATR) for Shopify Inc. is set at 47.24, with the Price to Sales ratio for SHOP stock in the period of the last 12 months amounting to 57.94. The Price to Book ratio for the last quarter was 22.58, with the Price to Cash per share for the same quarter was set at 49.76. Price to Free Cash Flow for SHOP in the course of the last twelve months was 774.96 with Quick ratio for the last quarter at 17.90.
SHOP stock trade performance evaluation
Shopify Inc. [SHOP] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 11.47. With this latest performance, SHOP shares gained by 25.90% in over the last four-week period, additionally plugging by 34.02% over the last 6 months – not to mention a rise of 198.31% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for SHOP stock in for the last two-week period is set at 65.88, with the RSI for the last a single of trading hit 71.36, and the three-weeks RSI is set at 62.04 for Shopify Inc. [SHOP]. The present Moving Average for the last 50 days of trading for this stock 1,022.57, while it was recorded at 1,083.16 for the last single week of trading, and 851.82 for the last 200 days.
Shopify Inc. [SHOP]: An insightful look at the core fundamentals
Operating Margin for any stock indicates how profitable investing would be, and Shopify Inc. [SHOP] shares currently have an operating margin of -8.62 and a Gross Margin at +53.80. Shopify Inc.’s Net Margin is presently recorded at -7.91.
Return on Total Capital for SHOP is now -5.17, given the latest momentum, and Return on Invested Capital for the company is -4.76. Return on Equity for this stock declined to -4.89, with Return on Assets sitting at -4.34. When it comes to the capital structure of this company, Shopify Inc. [SHOP] has a Total Debt to Total Equity ratio set at 5.03. Additionally, SHOP Total Debt to Total Capital is recorded at 4.79, with Total Debt to Total Assets ending up at 4.35. Long-Term Debt to Equity for the company is recorded at 4.73, with the Long-Term Debt to Total Capital now at 4.50.
Reflecting on the efficiency of the workforce at the company, Shopify Inc. [SHOP] managed to generate an average of -$24,968 per employee. Receivables Turnover for the company is 8.44 with a Total Asset Turnover recorded at a value of 0.55.Shopify Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 17.90 and a Current Ratio set at 17.90.
Earnings per share (EPS) analysis for Shopify Inc. [SHOP] stock
With the latest financial reports released by the company, Shopify Inc. posted 0.43/share EPS, while the average EPS was predicted by analysts to be reported at 0.24/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 79.20%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for SHOP.
Shopify Inc. [SHOP]: Insider Ownership positions
There are presently around $81,242 million, or 67.20% of SHOP stock, in the hands of institutional investors. The top three institutional holders of SHOP stocks are: FMR LLC with ownership of 6,799,853, which is approximately -16.754% of the company’s market cap and around 0.40% of the total institutional ownership; CAPITAL WORLD INVESTORS, holding 5,817,720 shares of the stock with an approximate value of $6.73 billion in SHOP stocks shares; and BAILLIE GIFFORD & CO, currently with $6.54 billion in SHOP stock with ownership of nearly -2.779% of the company’s market capitalization.
Positions in Shopify Inc. stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 502 institutional holders increased their position in Shopify Inc. [NYSE:SHOP] by around 5,937,052 shares. Additionally, 409 investors decreased positions by around 6,591,138 shares, while 116 investors held positions by with 57,671,236 shares. The mentioned changes placed institutional holdings at 70,199,426 shares, according to the latest SEC report filing. SHOP stock had 163 new institutional investments in for a total of 1,560,966 shares, while 89 institutional investors sold positions of 490,529 shares during the same period.