Shopify Inc. (SHOP) Bears Get a Bullish Change of Heart

Looking into the technicals, Shopify Inc. (NYSE:SHOP) has scored 96% Buy indication. The stock is also flashing a Buy from the Barchart TrendSpotter trading system. Traders hoping to speculate on the SHOP’s short-term trajectory should know that short terms indicators for the stock averaged 80% Buy with an average daily trading volume over the past 20 days at 1202210 shares. SHOP stock has overall a 1% Buy signal considering medium term indicators and the 50-day average daily volume remained almost 1571670 shares. It’s also worth noting that the stock, whose average daily volume over the 100 days prior to this writing was 1642753 shares, is 100% Buy on the basis of long term indicators.

The share price is currently staying around the first support level of $170.74. Below this, the next support is placed in the zone of $168.3. Till the time, the SHOP stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 63.05 on daily chart, which may remain a cause for concern. If the price breaks below $168.3 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $177.8 mark may result into a pull-back move towards $182.43 level.

Shopify Inc. (SHOP) is projected to climb by -5.69 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $190 price as 12-month high target. This represents a whopping 9.72 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $170, which represents a return potential of -1.83 percent when compared to the closing price of the stock of $173.17 on Monday, February 11. The lowest price target for the stock is $130 — slightly more than -24.93 percent from SHOP’s current share price.

Here’s a rundown of insider trading activity for sense of Shopify Inc. (NYSE:SHOP).

SHOP shares dropped -2.78 points or -1.58 percent on Monday to $173.17 with a heavy trade volume of 2.21 million shares. After opening the session at $178.05, the shares went as high as $180 and as low as $172.935, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $18.2 billion and now has 105.19 million shares outstanding. Shopify Inc. (SHOP) stock has gained 16.79 percent of market value in 21 trading days.

Analysts at RBC Capital Mkts lifted target price for shares of Shopify Inc. (NYSE:SHOP) but repeated their Sector Perform recommendation for the stock in their opinion released on February 11. The price target has been raised from $159 to $180. DA Davidson analysts bumped their recommendation on SHOP stock from Neutral to Buy in a separate flash note to investors on December 21.

SHOP stock has a trailing 3-year beta of 1.51, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$0.63 a share in the trailing twelve months. The stock’s value has surged 25.08 percent year to date (YTD) against a rise of 46.12 percent in 12 month’s time. The company’s shares still trade -2.16 percent away from its 1-year high of $176.99 and 53.93 percent up from 52-week low of $112.50. The average consensus rating on the company is 2, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of Shopify Inc. (SHOP) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry SHOP operates in has an average P/E of 32.59. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 19.13 on the Price-to-Sales ratio. Compare this with the industry average P/S of 5.62. 55.8 percent is the gross profit margin for Shopify Inc. and operating margin sits at -9.3 percent. Along with this, the net profit margin is -6.9 percent.

SHOP will be declaring its Q4 financial results on February 12. Analysts are forecasting revenue to climb 47 percent to $328M in the next fiscal quarter, while earnings are seen soaring by nearly 33.33 percent to $0.2 per share. History has shown that shares in Shopify Inc. have gone up on 10 different earnings reaction days and are predicted to add 0.07 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.04 per share, better than the -$0.02, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $270M, better than the $258M analysts expected. Earnings are estimated to increase by 0.8 percent this year, 121.22 percent next year and continue to increase by 0 percent annually for the next 5 years.