Stocks of Shopify Inc. (SHOP) are poised to climb above their peers

Shopify Inc. (NYSE: SHOP) stock jumped 11.70% on Friday to $35.24 against a previous-day closing price of $31.55. With 79.7 million shares changed hands, the volume of the stock remained heavier than its average volume of 42.26 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $35.48 whereas the lowest price it dropped to was $31.31. The 52-week range on SHOP shows that it touched its highest point at $176.29 and its lowest point at $29.72 during that stretch. It currently has a 1-year price target of $54.19. Beta for the stock currently stands at 1.89.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of SHOP was down-trending over the past week, with a drop of -8.44%, but this was down by -5.58% over a month. Three-month performance dropped to -17.68% while six-month performance fell -60.51%. The stock lost -77.34% in the past year, while it has lost -74.42% so far this year. A look at the trailing 12-month EPS for SHOP yields 0.12 with Next year EPS estimates of 0.20. For the next quarter, that number is 0.02. This implies an EPS growth rate of 784.30% for this year and 180.82% for next year.

Float and Shares Shorts:

At present, 1.26 billion SHOP shares are outstanding with a float of 1.25 billion shares on hand for trading. On Apr 28, 2022, short shares totaled 5.16 million, which was 4.09% higher than short shares on Mar 30, 2022. In addition to Mr. Tobias Lütke as the firm’s Founder, Chairman & CEO, Mr. Harley Finkelstein serves as its Pres.

Institutional Ownership:

Through their ownership of 71.65% of SHOP’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 38.19% of SHOP, in contrast to 29.98% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in SHOP with 4.71% of the stake, Baillie Gifford & Co. holds 53,729,620 shares worth 53,729,620. A second-largest stockholder of SHOP, T. Rowe Price Associates, Inc., holds 35,048,500 shares, controlling over 3.07% of the firm’s shares. Morgan Stanley Investment Managem is the third largest shareholder in SHOP, holding 32,126,170 shares or 2.81% stake. With a 2.53% stake in SHOP, the American Funds EuroPacific Growth is the largest stakeholder. A total of 28,915,158 shares are owned by the mutual fund manager. The Vanguard Total International Stoc, which owns about 1.29% of SHOP stock, is the second-largest Mutual Fund holder. It holds 14,762,250 shares valued at 461.17 million. Vanguard US Growth Fund holds 1.23% of the stake in SHOP, owning 14,068,550 shares worth 439.5 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SHOP since 43 analysts follow the stock currently. There are 18 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 22 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With SHOP analysts setting a high price target of $75.00 and a low target of $30.00, the average target price over the next 12 months is $45.73. Based on these targets, SHOP could surge 112.83% to reach the target high and fall by -14.87% to reach the target low. Reaching the average price target will result in a growth of 29.77% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. SHOP will report FY 2022 earnings on 02/15/2023. Analysts have provided yearly estimates in a range of $0.28 being high and -$0.04 being low. For SHOP, this leads to a yearly average estimate of $0.08. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Shopify Inc. surprised analysts by -$0.04 when it reported $0.02 EPS against a consensus estimate of $0.06. The surprise factor in the prior quarter was $0.01. Based on analyst estimates, the high estimate for the next quarter is $0.09 and the low estimate is -$0.07. The average estimate for the next quarter is thus -$0.00.

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