Investors may want to keep an eye on Shopify (SHOP).
After getting crushed for most of the year, CEO Tobias Lutke recently said he bought 282,942 shares around $35.33 each, for around $10 million. This is now the second time this year he bought shares. In May, he bought 29,617 shares for around $10 million after a 10:1 split.
“Our founder believes in Shopify’s strong business potential and vision for long-term growth,” Shopify said, as quoted by Barron’s. “That’s why Tobi continues to invest his personal funds in company shares.”
Better, the company recently posted better than expected earnings. In its third quarter, the company reported revenue of $1.366 billion—up 22% year over year. It was also ahead of Street expectations for $1.34 billion. Adjusted, the company lost two cents, which was better than expectations for a loss of seven cents.
Helping, JP Morgan just raised its price target on SHOP to $42 from $38, with an overweight rating. The firm sees the company “continuing to expand its revenue at above-peer rates driven by Merchant, while also driving toward sustainable profitability next year and beyond.”