The trading price of Shopify Inc (NYSE:SHOP) closed lower on Monday, March 03, and closing at $106.58, -4.84% lower than its previous close.
The company’s P/E ratio in the trailing 12-month period was 68.57. In examining the 52-week price action we see that the stock hit a 52-week high of $129.38 and a 52-week low of $48.56. Over the past month, the stock has lost -10.57% in value.
Shopify Inc, whose market valuation is $138.01 billion at the time of this writing, is expected to release its quarterly earnings report in April. Investors’ optimism about the company’s current quarter earnings report is understandable. Analysts have predicted the quarterly earnings per share to grow by 0.26 per share this quarter, however they have predicted annual earnings per share of 1.5 for current year and 1.9 for next year.
Analysts have forecast the company to bring in revenue of 2.33B for the current quarter, with the likely lows of 2.31B and highs of 2.36B. From the analysts’ viewpoint, the consensus estimate for the company’s annual revenue is 10.92B.
On the technical side, indicators suggest SHOP has a 50% Buy on average for the short term. According to the data of the stock’s medium term indicators, the stock is currently averaging as a 50% Buy, while an average of long term indicators suggests that the stock is currently 100% Buy.
Here is the average analyst rating on the stock as represented by 1.00 to 5.00, with the extremes of 1.00 and 5.00 suggesting the stock should be considered as either strong buy or strong sell respectively. The number of analysts that have assigned SHOP a recommendation rating is 34. Out of them, 13 rate it a Hold, while 21 recommend Buy, whereas 0 assign an Overweight rating. 0 analyst(s) have tagged Shopify Inc (SHOP) as Underweight, while 0 advise Sell. Analysts have rated the stock Buy, likely urging investors to take advantage of the opportunity to add to their holdings of the company’s shares.
If we dig deeper into the stock’s outlook, we see that the stock’s PEG is 2.64, which symbolizes a positive outlook. A quick review shows that SHOP’s price is currently -10.30% off the SMA20 and -5.51% off the SMA50. The RSI metric on the 14-day chart is currently showing 38.27, and weekly volatility stands at 6.02%. When measured over the past 30 days, the indicator reaches 5.29%. Shopify Inc (NYSE:SHOP)’s beta value is currently sitting at 2.60, while the Average True Range indicator is currently displaying 6.09. With analysts defining $80-$130 as the low and high price targets, we arrive at a consensus price target of $110 for the trailing 12-month period. The current price is about 24.94% off the estimated low and -21.97% off the forecast high, based on this estimate. Investors will be thrilled if SHOP’s share price rises to $110, which is the median consensus price. At that level, SHOP’s share price would be -3.21% below current price.
To see how Shopify Inc stock has been performing in comparison to its peers in the industry, here are the numbers: SHOP stock’s performance was -4.84% in the latest trading, and 41.05% in the past year, while MercadoLibre Inc. (MELI) has traded -2.43%% on the day and positioned 32.71% higher than it was a year ago. Another comparable company PC Connection Inc. (CNXN) saw its stock close -0.78%% lower in the most recent trading session but was down -4.06% in a year. Shopify Inc has a P/E ratio of 68.57, compared to MercadoLibre Inc.’s 54.93 and PC Connection Inc.’s 19.26.
An evaluation of the daily trading volume of Shopify Inc (NYSE:SHOP) indicates that the 3-month average is 7.31 million.
Currently, records show that 1.22 billion of the company’s shares remain outstanding. The insiders hold 6.41% of outstanding shares, whereas institutions hold 65.33%. However, since the stock’s price has seen 0.24% year-to-date, investors’ interest is likely to be reignited due to its potential to move even higher.
