4 times Within The Past Five Days, Shopify Inc. (SHOP) Hit A New High


Shopify Inc. (NYSE:SHOP) finished Wednesday with an addition of $4.64 to close at $47.33, an upside of 10.87 percent. An average of 26,991,619 shares of common stock have been traded in the last five days. There was a gain of $8.16 in the past week, and it reached a new high 3 times over the past 12 months. The last 20 days have seen an average of 20,218,580 shares traded, while the 50-day average volume stands at 20,904,688.

SHOP stock has increased by 36.48% in the last month. The company shares reached their 1-month lowest point of $32.35 on 12/27/22. With the stock rallying to its 52-week high on 01/24/23, shares of the company touched a low of $23.63 and a high of $98.85 in 52 weeks. It has reached a new high 8 times so far this year and achieved 36.36% or $12.62 in price. In spite of this, the price is down -52.12% from the 52-week high.

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Valuation Metrics

Shopify Inc. (SHOP) stock’s beta is 1.89. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 10.68, the price-to-book (PB) ratio at 6.91.

Financial Health

The quick ratio of Shopify Inc. for the three months ended September 29 was 6.60, and the current ratio was 6.60, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.10 and a total debt to equity ratio of 0.10 for the quarter ending September 29. Its gross profit as reported stood at $2.48 billion compared to revenue of $4.61 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Shopify Inc.’s return on assets was -27.20%.

Earnings Surprise

For the three-month period that ended September 29, Shopify Inc. had $5.27 billion in cash. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $2.91 billion in the quarter, while revenues were grew 89.04%. The analyst consensus anticipated Shopify Inc.’s latest quarter earnings to come in at -$0.07 per share, but it turned out to be -$0.02, a 71.40% surprise. For the quarter, EBITDA amounted to -$317.74 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Shopify Inc. (SHOP) price momentum. RSI 9-day as of the close on 25 January was 76.94%, suggesting the stock is Overbought, with historical volatility in this time frame at 71.32%.

As of today, SHOP’s price is $42.52 +20.83% or $8.16 from its 5-day moving average. SHOP is currently trading +40.40% higher than its 20-day SMA and +49.54% higher than its 100-day SMA. However, the stock’s current price level is +29.64% above the SMA50 and -26.50% below the SMA200.

The stochastic %K and %D were 77.98% and 81.29%, respectively, and the average true range (ATR) was 3.14. With the 14-day stochastic at 82.90% and the average true range at 2.79, the RSI (14) stands at 72.01%. The stock has reached 3.86 on the 9-day MACD Oscillator while the 14-day reading was at 5.38.

Analyst Ratings

Deutsche Bank upgraded Shopify Inc. (NYSE: SHOP) to a a Buy rating in its most recent analyst report. Previously, the stock was rated as a Hold. The consensus rating for Shopify Inc. (SHOP) among analysts is Overweight. According to current brokerage recommendations, 2 brokerage firms advise that investors sell SHOP, while 25 suggest investors hold. There are 1 analyst who rate the stock as underweight. The stock is rated overweight by 4 analysts, while 14 others rate it as a “buy”.

What is SHOP’s price target for the next 12 months?

Analysts predict a range of price targets between $28.00 and $60.00, with a median target of $40.00. Taking a look at these predictions, the average price target given by analysts for Shopify Inc. (SHOP) stock is $41.44.


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