Shopify Inc (NYSE: SHOP)’s stock price has gone decline by -2.07 in comparison to its previous close of 108.18, however, the company has experienced a -2.76% decrease in its stock price over the last five trading days. fool.com reported 2024-12-30 that Palantir Technologies (PLTR -3.72%) shares have advanced 360% this year, outpacing the next closest stock in the S&P 500 (^GSPC -1.11%) by 100 percentage points. The data analytics company is now worth $180 billion, but certain Wall Street analysts expect Shopify (SHOP -1.62%) and Uber Technologies (UBER -0.70%) to surpass that figure before year’s end in 2025.
Is It Worth Investing in Shopify Inc (NYSE: SHOP) Right Now?
Shopify Inc (NYSE: SHOP) has a higher price-to-earnings ratio of 99.69x compared to its average ratio. SHOP has 36-month beta value of 2.46. Analysts have mixed views on the stock, with 21 analysts rating it as a “buy,” 9 as “overweight,” 21 as “hold,” and 1 as “sell.”
The public float for SHOP is 1.21B, and currently, short sellers hold a 1.37% ratio of that float. The average trading volume of SHOP on December 30, 2024 was 7.38M shares.
SHOP’s Market Performance
The stock of Shopify Inc (SHOP) has seen a -2.76% decrease in the past week, with a -5.86% drop in the past month, and a 32.20% gain in the past quarter. The volatility ratio for the week is 2.81%, and the volatility levels for the past 30 days are at 3.46% for SHOP. The simple moving average for the past 20 days is -5.89% for SHOP’s stock, with a 36.69% simple moving average for the past 200 days.
Analysts’ Opinion of SHOP
Many brokerage firms have already submitted their reports for SHOP stocks, with Loop Capital repeating the rating for SHOP by listing it as a “Buy.” The predicted price for SHOP in the upcoming period, according to Loop Capital is $140 based on the research report published on December 06, 2024 of the current year 2024.
Redburn Atlantic gave a rating of “Buy” to SHOP, setting the target price at $99 in the report published on September 17th of the current year.
SHOP Trading at 4.74% 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 -12.24% of loss for the given period.
Volatility was left at 3.46%, however, over the last 30 days, the volatility rate increased by 2.81%, as shares sank -8.78% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +29.18% upper at present.
During the last 5 trading sessions, SHOP fell by -3.21%, which changed the moving average for the period of 200-days by +34.47% in comparison to the 20-day moving average, which settled at $112.55. In addition, Shopify Inc saw 36.00% 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 Harley Finkelstein, who proposed sale 11,974 shares at the price of $114.63 back on Dec 23 ’24. After this action, Harley Finkelstein now owns shares of Shopify Inc, valued at $1,372,551 using the latest closing price.
Jeff Hoffmeister, the Officer of Shopify Inc, proposed sale 9,786 shares at $114.63 during a trade that took place back on Dec 23 ’24, which means that Jeff Hoffmeister is holding shares at $1,121,781 based on the most recent closing price.
Stock Fundamentals for SHOP
Current profitability levels for the company are sitting at:
- 0.1 for the present operating margin
- 0.51 for the gross margin
The net margin for Shopify Inc stands at 0.17. The total capital return value is set at 0.07. 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 0.08 points at debt to capital in total, while cash flow to debt ratio is standing at 1.58.
Currently, EBITDA for the company is -8.0 million with net debt to EBITDA at -0.3. When we switch over and look at the enterprise to sales, we see a ratio of 16.69. The receivables turnover for the company is 5.72for 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 7.10.
Conclusion
To put it simply, Shopify Inc (SHOP) has had a mixed performance in recent times. Analysts have a mixed opinion on the stock, with some rating 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.
