The stock price of Shopify Inc. (NYSE:SHOP) fell over 20% from $1,134.32 on September 1 to about $891.31 as of 10:48AM ET today month. This does not come as being a surprise that is huge September tends to be a slower month for stocks.
But as of this early morning, Shopify’s stock price leaped to about $917.99 and which can be largely attributed to Goldman Sachs analyst Christopher Merwin raising his target for Shopify’s stock price while also reiterating a” that is a “Buy the shares. Merwin raised their target price for Shopify to $1,318 from $1,286.
However, Loop Capital analyst Anthony Chukumba lowered their price target of Shopify to $1,000 from $1,100. Chukumba is keeping a” that is a “Hold on Shopify while citing that a recent survey of over 500 current Shopify merchants was “encouraging” based on the ongoing secular tailwind of an accelerated migration towards online shopping. Chukumba noted that Shopify’s recently completed class A stock and debt that is convertible was dilutive, which called for investors to look for more desirable entry points.
Last week, Shopify announced it has completed its previously announced public offering of 1,100,000 course a voting that is subordinate at a price to the public of US$900 per share and its previously announced public offering of US$920 million aggregate principal amount of convertible senior notes due 2025, which includes the full exercise of the over-allotment option of US$120 million aggregate principal amount of the Notes.
The proceeds that are gross the Equity Offering, before underwriting discounts and offering costs, are US$990 million, therefore the gross proceeds from the Note Offering, before underwriting discounts and offering costs, are US$920 million. Shopify is expecting to utilize the web proceeds of the Offerings to strengthen its balance sheet, providing flexibility to finance its growth strategies.
The Equity Offering was led by Citigroup, Goldman Sachs & Co. LLC, and Credit Suisse with RBC Capital Markets acting as Co-Manager and the Note Offering ended up being led by Goldman Sachs & Co. LLC, Citigroup, and Credit Suisse with RBC Capital Markets acting as Co-Manager. The stock price of Shopify Inc. (NYSE:SHOP) fell over 20% from last month.