JMP Securities slashes price target on Shopify Inc. [SHOP] – find out why.


Shopify Inc. [NYSE: SHOP] stock went on an upward path that rose over 1.96% on Friday, amounting to a one-week price decrease of less than -12.09%. The company report on July 14, 2022 that Shopify introduces POS Hardware with integrated Shopify Payments to help Singapore merchants sell everywhere their customers are.

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Only Shopify POS unifies online and in-store sales and makes checkout seamless.

Shopify today announced the availability of the all-new Shopify POS and integrated hardware, Wisepad 3, to merchants in Singapore. With things nearly back to normal, Singaporeans are returning to physical stores, even as they continue to do some of their shopping on marketplaces, social media platforms and mobile apps. The only point-of-sale system that seamlessly connects to Shopify stores and helps merchants sell everywhere their customers are, Shopify POS will enable Singaporean merchants to better connect with their customers in Singapore and elsewhere.

Over the last 12 months, SHOP stock dropped by -78.31%. The one-year Shopify Inc. stock forecast points to a potential upside of 44.22. The average equity rating for SHOP stock is currently 2.70, trading closer to a bullish pattern in the stock market.

The market cap for the stock reached $38.69 billion, with 1.26 billion shares outstanding and 1.25 billion shares in the current float. Compared to the average trading volume of 43.02M shares, SHOP stock reached a trading volume of 22333146 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Guru’s Opinion on 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 $56.06 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 2.70. 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.

JMP Securities have made an estimate for Shopify Inc. shares, keeping their opinion on the stock as Mkt Perform, with their previous recommendation back on July 05, 2022. While these analysts kept the previous recommendation, Morgan Stanley raised their target price to Equal-Weight. The new note on the price target was released on June 24, 2022, representing the official price target for Shopify Inc. stock.

The Average True Range (ATR) for Shopify Inc. is set at 2.67, with the Price to Sales ratio for SHOP stock in the period of the last 12 months amounting to 8.02. The Price to Book ratio for the last quarter was 4.02, with the Price to Cash per share for the same quarter was set at 5.86. Price to Free Cash Flow for SHOP in the course of the last twelve months was 152.49 with Quick ratio for the last quarter at 11.80.

SHOP Stock Performance Analysis:

Shopify Inc. [SHOP] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -12.09. With this latest performance, SHOP shares gained by 3.02% in over the last four-week period, additionally sinking by -73.25% over the last 6 months – not to mention a drop of -78.31% 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 42.88, with the RSI for the last a single of trading hit 41.25, and the three-weeks RSI is set at 42.97 for Shopify Inc. [SHOP]. The present Moving Average for the last 50 days of trading for this stock 35.18, while it was recorded at 31.76 for the last single week of trading, and 88.44 for the last 200 days.

Insight into Shopify Inc. Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and Shopify Inc. [SHOP] shares currently have an operating margin of +7.10 and a Gross Margin at +52.86. Shopify Inc.’s Net Margin is presently recorded at +63.20.

Return on Equity for this stock inclined to 33.25, with Return on Assets sitting at 27.62.

Shopify Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 11.80 and a Current Ratio set at 11.80.

Shopify Inc. [SHOP] Insider Position Details

There are presently around $23,828 million, or 69.30% of SHOP stock, in the hands of institutional investors. The top three institutional holders of SHOP stocks are: MORGAN STANLEY with ownership of 64,420,150, which is approximately 9.476% of the company’s market cap and around 0.15% of the total institutional ownership; BAILLIE GIFFORD & CO, holding 53,729,620 shares of the stock with an approximate value of $1.68 billion in SHOP stocks shares; and VANGUARD GROUP INC, currently with $1.14 billion in SHOP stock with ownership of nearly 3.28% of the company’s market capitalization.

Positions in Shopify Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 628 institutional holders increased their position in Shopify Inc. [NYSE:SHOP] by around 123,646,661 shares. Additionally, 693 investors decreased positions by around 149,137,536 shares, while 130 investors held positions by with 489,222,038 shares. The mentioned changes placed institutional holdings at 762,006,235 shares, according to the latest SEC report filing. SHOP stock had 141 new institutional investments in for a total of 19,163,339 shares, while 345 institutional investors sold positions of 26,329,960 shares during the same period.