SHOP Stock Fails to Shake Off Downgrade

D.A. Davidson cut its price target yesterday, but remained optimistic in the long-term

Deputy Editor
Apr 7, 2020 at 10:29 AM
facebook X logo linkedin


Shopify Inc (NYSE: SHOP) is down 2.5% to trade at $380.36 this morning, succumbing to a downgrade from Raymond James to "market perform" from "outperform." This comes just one day after D.A. Davidson cut its price target to $500 from $675. The latter did maintain its "buy" rating, calling SHOP "one of the most attractive long-term open-ended growth" holdings. 

The analyst chatter surrounding SHOP recently has been deafening, with several analysts in coverage slashing their price targets just last week. Coming into today, SHOP held 13 "hold" or worse ratings, and 11 "buy" or better recommendations. Meanwhile, the 12-month consensus target price of $496.32 is a 26.7% premium to current levels. 

SHOP has had a rocky ride, alongside the broader market, since its mid-February record high of $593.89. Today's attempt at a breakout was curbed by its 30-day moving average, which has kept a cap on the shares since early March. 

Since we last checked in with SHOP, puts are still incredibly popular. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), 1.33 puts have been bought for every call in the past 10 days. This ratio sits in the 94th percentile of its annual range, suggesting a heavier-than-usual appetite for long puts of late. 
 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI