DZ Bank Downgrades Shopify

On February 6, 2023, DZ Bank downgraded their outlook for Shopify from Hold to Sell.

Analyst Price Forecast Suggests 19.02% Downside

As of February 7, 2023, the average one-year price target for Shopify is $41.76. The forecasts range from a low of $28.28 to a high of $85.50. The average price target represents a decrease of 19.02% from its latest reported closing price of $51.57.

The projected annual revenue for Shopify is $6,783MM, an increase of 29.33%. The projected annual EPS is $0.03.

What are large shareholders doing?

Baillie Gifford & holds 72,447,961 shares representing 5.70% ownership of the company. In its prior filing, the firm reported owning 64,511,049 shares, representing an increase of 10.96%. The firm increased its portfolio allocation in SHOP by 46.25% over the last quarter.

Capital Research Global Investors holds 52,632,532 shares representing 4.14% ownership of the company. In its prior filing, the firm reported owning 37,811,970 shares, representing an increase of 28.16%. The firm increased its portfolio allocation in SHOP by 26.60% over the last quarter.

AEPGX – EUROPACIFIC GROWTH FUND holds 39,450,331 shares representing 3.10% ownership of the company. In its prior filing, the firm reported owning 28,988,490 shares, representing an increase
of 26.52%. The firm increased its portfolio allocation in SHOP by 32.71% over the last quarter.

Price T Rowe Associates holds 32,098,494 shares representing 2.52% ownership of the company. In its prior filing, the firm reported owning 31,003,772 shares, representing an increase of 3.41%. The firm increased its portfolio allocation in SHOP by 15.77% over the last quarter.

Sands Capital Management holds 22,580,247 shares representing 1.78% ownership of the company. In its prior filing, the firm reported owning 23,560,742 shares, representing a decrease of 4.34%. The firm decreased its portfolio allocation in SHOP by 10.41% over the last quarter.

Fund Sentiment

There are 1392 funds or institutions reporting positions in Shopify. This is a decrease of 74 owner(s) or 5.05%. Average portfolio weight of all funds dedicated to US:SHOP is 0.4465%, a decrease of 0.8758%.

Total shares owned by institutions increased in the last three months by 6.69% to 893,578K shares.

Shopify Background Information
(This description is provided by the company.)

Shopify is a leading global commerce company, providing trusted tools to start, grow, market, and manage a retail business of any size. Shopify makes commerce better for everyone with a platform and services that are engineered for reliability, while delivering a better shopping experience for consumers everywhere. Headquartered in Ottawa, Canada, Shopify powers over one million businesses in more than 175 countries and is trusted by brands such as Allbirds, Gymshark, PepsiCo, Staples and many more.

This article originally appeared on Fintel