Shopify Inc. (NYSE:SHOP) saw an upside of 1.49% to close Monday at $53.93 after adding $0.79 on the day. The 5-day average trading volume is 10,381,000 shares of the company’s common stock. It has gained $56.20 in the past week and touched a new high 1 time within the past 5 days. An average of 12,351,485 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 12,111,724.
SHOP’s 1-month performance is -17.75% or -$11.64 on its low of $51.20 reached on 08/18/23. The company’s shares have touched a 52-week low of $23.63 and high of $71.43, with the stock’s rally to the 52-week high happening on 07/14/23. YTD, SHOP has achieved 55.37% or $19.22 and has reached a new high 22 times. However, the current price is down -24.50% from the 52-week high price.
Valuation Metrics
SHOP stock has a beta of 2.08. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 10.99 while the price-to-book (PB) in the most recent quarter is 9.25, with the price to cash flow ratio at 341.56.
Shopify Inc.’s quick ratio for the period ended June 29 was 6.70, with the current ratio over the same period at 6.70. As well, the company’s long term debt to equity for the quarter ending June 29 was 0.12, while the total debt to equity was 0.12. In terms of profitability, the gross margin trailing 12 months is 47.80%. The trailing 12-month EBITDA margin is -10.24% while for the period ending June 29, Shopify Inc.’s operating margin was -37.50%. The firm’s gross profit as reported stood at $2.75 billion against revenue of $5.6 billion.
Earnings Surprise
For the quarterly period ending June 29 this year, Net income and sales went up compared to those figures reported in the previous quarter. Net income grew 89.04% to $2.91 billion, while revenue of $0.0 was 100.0% off the previous quarter. Analysts expected SHOP to announce $0.05 per share in earnings in its latest quarter, but it posted $0.14, representing a 180.00% surprise. EBITDA for the quarter stood at more than -$1.62 billion. SHOP stock balance sheet for the quarter ending June 29 shows that total liabilities totaled 2.24 billion, with total debt at $1.13 billion.
Let’s look briefly at Shopify Inc. (SHOP) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 21 August was 30.04% to suggest the stock is trending Neutral, with historical volatility in this time period at 29.46%.
The stock’s 5-day moving average is $54.19, reflecting a -3.66% or -$2.05 change from its current price. SHOP is currently trading -18.50% above its 20-day SMA, +21.71% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by -9.02% and SMA200 by+55.02%.
Stochastic %K and %D was 10.96% and 7.95% and the average true range (ATR) pointed at 2.23. The RSI (14) points at 33.21%, while the 14-day stochastic is at 18.22% with the period’s ATR at 2.35. The stock’s 9-day MACD Oscillator is pointing at -1.45 and -2.79 on the 14-day charts.
Analyst Ratings
In the most recent analyst report for Shopify Inc. (NYSE: SHOP), DZ Bank upgraded it to a Hold rating. They previously had a Sell rating on the stock.
