Traders Buy Large Volume of Call Options on Shopify (NASDAQ:SHOP)

Shopify Inc. (NASDAQ:SHOP) (TSE:SHOP) saw unusually large options trading activity on Monday. Stock traders bought 76,616 call options on the company. This represents an increase of 83% compared to the typical daily volume of 41,763 call options.

Shopify Stock Up 6.2%

Shares of Shopify stock opened at $149.00 on Tuesday. The stock has a 50 day moving average price of $140.41 and a two-hundred day moving average price of $115.83. The stock has a market capitalization of $193.65 billion, a P/E ratio of 83.24, a PEG ratio of 6.65 and a beta of 2.69. Shopify has a 12-month low of $69.84 and a 12-month high of $159.01.

Shopify (NASDAQ:SHOP) (TSE:SHOP) last posted its earnings results on Wednesday, August 6th. The software maker reported $0.35 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.29 by $0.06. The business had revenue of $2.68 billion for the quarter, compared to analyst estimates of $2.55 billion. Shopify had a net margin of 23.42% and a return on equity of 12.30%. Shopify’s revenue was up 31.1% compared to the same quarter last year. During the same period last year, the business posted $0.26 EPS. Sell-side analysts anticipate that Shopify will post 1.12 earnings per share for the current year.

Wall Street Analyst Weigh In

SHOP has been the topic of several research analyst reports. CIBC lifted their price target on Shopify from $145.00 to $185.00 and gave the company an “outperform” rating in a research report on Thursday, August 7th. Needham & Company LLC initiated coverage on Shopify in a report on Monday, July 14th. They set a “buy” rating and a $135.00 price target on the stock. TD Securities lifted their target price on Shopify from $145.00 to $170.00 and gave the company an “outperform” rating in a research note on Thursday, August 7th. BMO Capital Markets increased their price target on shares of Shopify from $120.00 to $180.00 and gave the stock an “outperform” rating in a research report on Thursday, August 7th. Finally, Atb Cap Markets downgraded shares of Shopify from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, August 6th. Twenty-three equities research analysts have rated the stock with a Buy rating, twenty have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $151.69.

Institutional Trading of Shopify

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Corient Private Wealth LLC boosted its position in shares of Shopify by 5.2% in the second quarter. Corient Private Wealth LLC now owns 84,841 shares of the software maker’s stock valued at $9,786,000 after acquiring an additional 4,163 shares during the period. National Wealth Management Group LLC bought a new stake in shares of Shopify in the second quarter valued at about $210,000. Momentum Wealth Planning LLC acquired a new stake in Shopify during the second quarter worth about $436,000. Total Investment Management Inc. bought a new position in Shopify during the second quarter valued at about $56,000. Finally, Centaurus Financial Inc. raised its holdings in Shopify by 25.2% in the 2nd quarter. Centaurus Financial Inc. now owns 1,868 shares of the software maker’s stock valued at $215,000 after acquiring an additional 376 shares in the last quarter. Institutional investors and hedge funds own 69.27% of the company’s stock.

Shopify Company Profile

Shopify Inc, a commerce company, provides a commerce platform and services in Canada, the United States, Europe, the Middle East, Africa, the Asia Pacific, Australia, China, and Latin America. The company’s platform enables merchants to displays, manages, markets, and sells its products through various sales channels, including web and mobile storefronts, physical retail locations, pop-up shops, social media storefronts, native mobile apps, buy buttons, and marketplaces; and enables to manage products and inventory, process orders and payments, fulfill and ship orders, new buyers and build customer relationships, source products, leverage analytics and reporting, manage cash, payments and transactions, and access financing.