As of Thursday close, Shopify Inc.’s (NYSE:SHOP) stock was down -$2.12, moving down -3.83 percent to $53.22. The average number of shares traded per day over the past five days has been 9,470,720 shares. 3 times new highs have been achieved over the past 5 days, with a -$3.25 fall in that time frame. In the last twenty days, the average volume was 12,256,370, while in the previous 50 days, it was 12,341,696.
Since last month, SHOP stock retreated -22.00%. Shares of the company fell to $52.78 on 08/17/23, the lowest level in the past month. A 52-week high of $71.43 was reached on 07/14/23 after having rallying from a 52-week low of $23.63. Since the beginning of this year, SHOP’s stock price has risen by 53.33% or $18.51, and marked a new high 22 times. However, the stock has declined by -25.49% since its 52-week high.
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Valuation Metrics
The stock’s beta is 2.07. Besides these, the trailing price-to-sales (P/S) ratio of 11.06, the price-to-book (PB) ratio of 9.13, and the price-to-cash flow ratio of 343.86 may also be considered.
Financial Health
In the three months ended June 29, Shopify Inc.’s quick ratio stood at 6.70, while its current ratio was 6.70, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending June 29 was 0.12, and the total debt-to-equity ratio was 0.12. On the profitability front, the trailing twelve-month gross margin is 47.80% percent. In the year ended June 29, EBITDA margin amounted to -10.24%, whereas operating margins totaled -37.50%. Based on annual data, SHOP earned $2.75 billion in gross profit and brought in $5.6 billion in revenue.
A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was -7.20%. Return on equity (ROE) for the past 12 months was -24.70%.
According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. SHOP’s revenue rose 36.48% during the quarter, while net income inched up to $4.61 billion. While analysts expected Shopify Inc. to report $0.05 quarterly earnings, the actual figure was $0.14 per share. During the quarter, the company generated -$1.62 billion in EBITDA. The liabilities of Shopify Inc. were 2.24 billion at the end of its most recent quarter ended June 29, and its total debt was $1.13 billion.
Technical Picture
This quick technical analysis looks at Shopify Inc.’s (SHOP) price momentum. With a historical volatility rate of 27.66%, the RSI 9-day stood at 23.98% on 17 August.
With respect to its five-day moving average, the current Shopify Inc. price is down by -5.76% percent or -$3.25. At present, SHOP shares trade -18.67% below its 20-day simple moving average and +18.32% percent above its 100-day simple moving average. However, the stock is currently trading approximately -16.40% below its SMA50 and +55.66% above its SMA200.
Stochastic coefficient K was 5.62% and Stochastic coefficient D was 7.21%, while ATR was 2.37. Given the Stochastic reading of 2.86% for the 14-day period, the RSI (14) reading has been calculated as 29.94%. As of today, the MACD Oscillator reading stands at -0.99, while the 14-day reading stands at -3.58.
Analyst Ratings
DZ Bank upgraded its rating on Shopify Inc. (NYSE: SHOP) to a Hold in a note to investors on August 04, 2023. The analysts firm previously had a Sell rating on the stock.Shopify Inc. (SHOP) has been rated Overweight by analysts. According to 2 brokerage firms, SHOP is a sell, and 27 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 3 analysts rate Shopify Inc. stock as buy, with 14 recommending it as overweight.
With a median target price of $66.00, the current consensus forecast for the stock is $52.00 – $80.00. Based on these forecasts, analysts predict Shopify Inc. (SHOP) will achieve an average price target of $67.79.
