It’s an appealing income play to consider Shopify Inc. (SHOP)

The price of Shopify Inc. (NYSE: SHOP) closed at $44.04 in the last session, up 8.79% from day before closing price of $40.48. In other words, the price has increased by $+3.56 from its previous closing price. On the day, 29386642 shares were traded. SHOP stock price reached its highest trading level at $44.11 during the session, while it also had its lowest trading level at $41.90.

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Ratios:

We take a closer look at SHOP’s different ratios to gain a better understanding of the stock. For the most recent quarter (mrq), Quick Ratio is recorded 6.60 and its Current Ratio is at 6.60. In the meantime, Its Debt-to-Equity ratio is 0.10 whereas as Long-Term Debt/Eq ratio is at 0.10.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for the company, Deutsche Bank on January 23, 2023, Upgraded its rating to Buy and sets its target price to $50 from $40 previously.

On January 18, 2023, DA Davidson started tracking the stock assigning a Neutral rating and target price of $34.

Valuation Measures:

For the stock, the TTM Price-to-Sale (P/S) ratio is 9.94 while its Price-to-Book (P/B) ratio in mrq is 6.43.

Stock Price History:

Over the past 52 weeks, SHOP has reached a high of $101.36, while it has fallen to a 52-week low of $23.63. The 50-Day Moving Average of the stock is 37.24, while the 200-Day Moving Average is calculated to be 36.62.

Shares Statistics:

According to the various share statistics, SHOP traded on average about 22.97M shares per day over the past 3-months and 18.77M shares per day over the past 10 days. A total of 1.27B shares are outstanding, with a floating share count of 1.12B. Insiders hold about 0.18% of the company’s shares, while institutions hold 65.80% stake in the company. Shares short for SHOP as of Oct 13, 2022 were 41.49M with a Short Ratio of 33.74M, compared to 50.67M on Sep 14, 2022. Therefore, it implies a Short% of Shares Outstanding of 3.27% and a Short% of Float of 5.93%.

Earnings Estimates

The company has 18 analysts who recommend its stock at the moment. On average, analysts expect EPS of -$0.04 for the current quarter, with a high estimate of $0.15 and a low estimate of -$0.08, while EPS last year was $0.18. The consensus estimate for the next quarter is $0, with high estimates of $0.2 and low estimates of -$0.12.

Analysts are recommending an EPS of between $0.11 and -$0.22 for the fiscal current year, implying an average EPS of -$0.13. EPS for the following year is $0.03, with 20 analysts recommending between $1.12 and -$0.85.

Revenue Estimates

According to 21 analysts, the current quarter’s revenue is expected to be $2.21B. It ranges from a high estimate of $2.29B to a low estimate of $1.91B. As of the current estimate, Shopify Inc.’s year-ago sales were $1.74B, an estimated increase of 27.20% from the year-ago figure. For the next quarter, 18 analysts are estimating revenue of $1.98B, an increase of 25.20% less than the figure of $27.20% in the same quarter last year. There is a high estimate of $2.29B for the next quarter, whereas the lowest estimate is $1.78B.

A total of 23 analysts have provided revenue estimates for SHOP’s current fiscal year. The highest revenue estimate was $7.79B, while the lowest revenue estimate was $6.83B, resulting in an average revenue estimate of $7.46B. In the same quarter a year ago, actual revenue was $6.06B, up 23.00% from the average estimate. Based on 23 analysts’ estimates, the company’s revenue will be $9.13B in the next fiscal year. The high estimate is $10.85B and the low estimate is $7.51B. The average revenue growth estimate for next year is up 22.50% from the average revenue estimate for this year.