The stock of Shopify Inc. (NYSE:SHOP) increased by $0.71 on Monday to finish at $55.98, up 1.28 percent. The last five days have seen an average of 9,763,300 shares of common stock traded. 22 times new highs were reached in the current year, with a gain of $21.27. The average number of shares traded over the last 20 days was 12,391,820, while the average volume over the last 50 days totaled 12,819,200.
SHOP stock dropped -18.22% since last month. On 08/14/23, the company’s shares reached a one-month low of $54.38. The stock touched a high of $71.43 on 07/14/23, after rallying from a low of $23.63 in 52 weeks. The price of SHOP stock has risen by 61.28% or $21.27 this year, reaching a new high 22 times. Still, the stock price is down -21.63% from the 52-week high.
Valuation Metrics
Beta for the stock is 2.07. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 11.64, the price-to-book (PB) ratio of 9.60, and the price-to-cash flow ratio of 361.69.
Financial Health
For the three months ended June 29, Shopify Inc.’s quick ratio was 6.70, while its current ratio was 6.70, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 0.12, and the total debt to equity ratio is 0.12. As far as profitability goes, gross margin for the trailing twelve months is 47.80% percent. Shopify Inc.’s EBITDA margin for the year ended June 29 was -10.24%, whereas its operating margin stood at -37.50% for the same period. Based on annual data, it had gross profit of $2.75 billion and revenue of $5.6 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. SHOP’s return on assets (ROA) during the last 12 months has been -19.00%. There was a -7.20% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was -24.70%.
Earnings Surprise
According to Shopify Inc.’s quarterly financial report for the quarter that ended June 29, it had $5.27 billion in cash and short-term investments. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $4.61 billion, while revenues rose by 36.48% to $0.0. It was predicted that Shopify Inc.’s quarterly earnings would be $0.14, but it ended up being $0.05. EBITDA was -$1.62 billion for the quarter. At the end of Shopify Inc.’s most recent quarter ended June 29, its liabilities totaled 2.24 billion, while its total debt was $1.13 billion.
Technical Picture
Here’s a quick look at Shopify Inc.’s (SHOP) price momentum from a technical perspective. As of 14 August, the RSI 9-day stood at 31.42%, suggesting the stock is Neutral, with a 43.18% historical volatility rate.
The stochastic %K and %D were 8.69% and 6.26% respectively, while the average true range (ATR) was 2.46. Based on the 14-day stochastic reading of 11.50%, the RSI (14) reading is 35.21%. On the 9-day MACD Oscillator, the stock is at -1.44, and the 14-day reading is at -4.51.
Analyst Ratings
In its most recent analyst report, DZ Bank raised its rating on Shopify Inc. (NYSE: SHOP) to a Hold. Prior to this, analysts firm rated the stock as a Sell. Analysts have assigned Shopify Inc. (SHOP) an Overweight rating. SHOP is a stock that is recommended for selling by 2 brokerage firms, while 27 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 3 rates it overweight and 14 others recommend it as a buy.
What is SHOP’s price target for the next 12 months?
The current consensus forecast for the stock is between $52.00 and $80.00, with a median target price of $66.00. In analyzing these forecasts, the average price target given by analysts for Shopify Inc. (SHOP) is $67.82.
