Shopify Inc (NYSE: SHOP)’s stock price has gone decline by -0.54 in comparison to its previous close of 109.08, however, the company has experienced a 24.53% increase in its stock price over the last five trading days. finbold.com reported 2024-11-17 that Shopify Inc. (NYSE: SHOP) has cemented its position as a leader in the e-commerce sector.
Is It Worth Investing in Shopify Inc (NYSE: SHOP) Right Now?
The price-to-earnings ratio for Shopify Inc (NYSE: SHOP) is above average at 102.08x. The 36-month beta value for SHOP is also noteworthy at 2.42. There are mixed opinions on the stock, with 20 analysts rating it as a “buy,” 10 rating it as “overweight,” 20 rating it as “hold,” and 1 rating it as “sell.”
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The public float for SHOP is 1.21B, and at present, short sellers hold a 1.77% of that float. The average trading volume of SHOP on November 18, 2024 was 6.80M shares.
SHOP’s Market Performance
SHOP’s stock has seen a 24.53% increase for the week, with a 32.90% rise in the past month and a 44.35% gain in the past quarter. The volatility ratio for the week is 5.99%, and the volatility levels for the past 30 days are at 3.25% for Shopify Inc. The simple moving average for the past 20 days is 24.38% for SHOP’s stock, with a 48.98% simple moving average for the past 200 days.
Analysts’ Opinion of SHOP
Many brokerage firms have already submitted their reports for SHOP stocks, with Redburn Atlantic repeating the rating for SHOP by listing it as a “Buy.” The predicted price for SHOP in the upcoming period, according to Redburn Atlantic is $99 based on the research report published on September 17, 2024 of the current year 2024.
Cantor Fitzgerald, on the other hand, stated in their research note that they expect to see SHOP reach a price target of $70. The rating they have provided for SHOP stocks is “Neutral” according to the report published on September 05th, 2024.
SHOP Trading at 32.33% 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 -6.17% of loss for the given period.
Volatility was left at 3.25%, however, over the last 30 days, the volatility rate increased by 5.99%, as shares surge +31.22% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +61.90% upper at present.
During the last 5 trading sessions, SHOP rose by +24.53%, which changed the moving average for the period of 200-days by +41.41% in comparison to the 20-day moving average, which settled at $87.22. In addition, Shopify Inc saw 39.27% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at SHOP starting from FIDJI SIMO, who proposed sale 500 shares at the price of $109.08 back on Nov 15 ’24. After this action, FIDJI SIMO now owns shares of Shopify Inc, valued at $54,540 using the latest closing price.
Colleen Johnston, the Director of Shopify Inc, proposed sale 2,000 shares at $108.92 during a trade that took place back on Nov 14 ’24, which means that Colleen Johnston is holding shares at $217,840 based on the most recent closing price.
Stock Fundamentals for SHOP
Current profitability levels for the company are sitting at:
- 0.08 for the present operating margin
- 0.51 for the gross margin
The net margin for Shopify Inc stands at 0.16. The total capital return value is set at 0.06. Equity return is now at value 15.04, with 12.14 for asset returns.
Based on Shopify Inc (SHOP), the company’s capital structure generated 0.09 points at debt to capital in total, while cash flow to debt ratio is standing at 1.42.
Currently, EBITDA for the company is -8.0 million with net debt to EBITDA at -0.35. When we switch over and look at the enterprise to sales, we see a ratio of 18.0. The receivables turnover for the company is 44.62for trailing twelve months and the total asset turnover is 0.68. The liquidity ratio also appears to be rather interesting for investors as it stands at 7.10.
Conclusion
In summary, Shopify Inc (SHOP) has had a better performance as of late. Analysts have mixed opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
