Should You Invest in Shopify Inc (SHOP) Now?

The 36-month beta value for SHOP is at 2.29. Analysts have varying views on the stock, with 11 analysts rating it as a “buy,” 7 rating it as “overweight,” 10 as “hold,” and 1 as “sell.”

The public float for SHOP is 1.20B, and currently, shorts hold a 1.65% of that float. The average trading volume for SHOP on June 10, 2024 was 9.97M shares.

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SHOP) stock’s latest price update

Shopify Inc (NYSE: SHOP)’s stock price has increased by 0.21 compared to its previous closing price of 61.46. However, the company has seen a 4.13% increase in its stock price over the last five trading sessions. seekingalpha.com reported 2024-06-09 that Shopify’s stock has dropped 20% in the past month due to slightly weak 2Q guidance, despite beating revenue and EPS expectations. The recent selloff is overdone and presents an attractive entry point, as the company’s key growth drivers, including GMV, GPV, and MRR, remain on track. Shopify’s resilient consumer spending, boosted by increased marketing investments, indicates potential for future growth.

SHOP’s Market Performance

SHOP’s stock has risen by 4.13% in the past week, with a monthly drop of -1.82% and a quarterly drop of -19.13%. The volatility ratio for the week is 2.37% while the volatility levels for the last 30 days are 2.71% for Shopify Inc The simple moving average for the last 20 days is 4.40% for SHOP stock, with a simple moving average of -10.09% for the last 200 days.

Analysts’ Opinion of SHOP

Many brokerage firms have already submitted their reports for SHOP stocks, with MoffettNathanson repeating the rating for SHOP by listing it as a “Neutral.” The predicted price for SHOP in the upcoming period, according to MoffettNathanson is $65 based on the research report published on June 06, 2024 of the current year 2024.

Goldman, on the other hand, stated in their research note that they expect to see SHOP reach a price target of $74, previously predicting the price at $67. The rating they have provided for SHOP stocks is “Buy” according to the report published on May 22nd, 2024.

Piper Sandler gave a rating of “Neutral” to SHOP, setting the target price at $63 in the report published on May 09th of the current year.

SHOP Trading at -8.40% from the 50-Day Moving Average

After a stumble in the market that brought SHOP to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -32.74% of loss for the given period.

Volatility was left at 2.71%, however, over the last 30 days, the volatility rate increased by 2.37%, as shares sank -1.38% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -21.66% lower at present.

During the last 5 trading sessions, SHOP rose by +4.13%, which changed the moving average for the period of 200-days by +14.14% in comparison to the 20-day moving average, which settled at $58.95. In addition, Shopify Inc saw -20.94% in overturn over a single year, with a tendency to cut further losses.

Stock Fundamentals for SHOP

Current profitability levels for the company are sitting at:

  • -0.17 for the present operating margin
  • 0.51 for the gross margin

The net margin for Shopify Inc stands at -0.03. The total capital return value is set at -0.12. Equity return is now at value -2.40, with -1.88 for asset returns.

Based on Shopify Inc (SHOP), the company’s capital structure generated 0.11 points at debt to capital in total, while cash flow to debt ratio is standing at 0.94.

Currently, EBITDA for the company is -88.0 million with net debt to EBITDA at -1.23. When we switch over and look at the enterprise to sales, we see a ratio of 10.63. The receivables turnover for the company is 6.86for trailing twelve months and the total asset turnover is 0.67. The liquidity ratio also appears to be rather interesting for investors as it stands at 7.14.

Conclusion

In conclusion, Shopify Inc (SHOP) has had a mixed performance lately. Opinion on the stock among analysts is bullish, with some giving it a “buy” rating and others a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.

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