On Thursday, Indiana-based Kessler Investment Group fully exited its position in Shopify (NYSE: SHOP) in the third quarter, selling approximately $7 million worth of shares, according to an SEC filing.
What Happened
According to a filing with the U.S. Securities and Exchange Commission released on Thursday, Kessler Investment Group reported selling all 60,498 shares of Shopify. The estimated value of the trade was $7 million.
What Else to Know
Top holdings after the filing:
- GOOGL: $15,724,437 (6.8% of AUM)
- CRWD: $13,486,431 (5.8% of AUM)
- DELL: $12,237,728 (5.3% of AUM)
- ROKU: $11,467,589 (4.9% of AUM)
- ANET: $11,380,000 (4.9% of AUM)
As of Thursday's market close, Shopify shares were priced at $163.87, up 98% over the past year, far outperforming the S&P 500's 16% gain in the same period.
Company Overview
| Metric | Value |
|---|---|
| Price (as of market close Thursday) | $163.87 |
| Market capitalization | $213 billion |
| Revenue (TTM) | $10 billion |
| Net income (TTM) | $2.3 billion |
Company Snapshot
- Shopify provides a comprehensive commerce platform, merchant solutions, and related services, including online storefronts, payment processing, shipping, and business analytics.
- The company generates revenue primarily through subscription fees for its platform and transaction-based merchant solutions, including payment processing and value-added services.
- Shopify serves merchants globally, enabling businesses of all sizes to manage sales across digital and physical channels.
Shopify operates at a global scale as a leading commerce platform, enabling merchants to manage sales across digital and physical channels.
Foolish Take
Kessler Investment Group’s $7 million sale of its entire Shopify (NYSE: SHOP) position reflects a measured pullback from one of the year’s biggest tech rebound stories. Shopify stock has nearly doubled over the past year, outpacing the S&P 500 by more than 80 percentage points amid the firm’s renewed profitability and growth momentum.
In its second-quarter earnings, Shopify reported 31% revenue growth to $2.7 billion and a 16% free cash flow margin, marking eight consecutive quarters of double-digit free cash flow margins. Gross profit rose 25% year-over-year to $1.3 billion, driven by accelerating merchant adoption across North America, Europe, and Asia Pacific, with European gross merchandise value up 42% on a constant-currency basis. President Harley Finkelstein said the results “are the payoff from bold bets we made years ago,” while CFO Jeff Hoffmeister highlighted ongoing international strength and new growth from first-time founders to global brands.
Despite these strong fundamentals, Shopify trades at a premium to most e-commerce peers, which may explain Kessler’s rotation into more diversified tech holdings such as Alphabet, CrowdStrike, Dell, Roku, and Arista Networks. After such an extraordinary run, taking profits in Shopify looks less like doubt—and more like disciplined portfolio balance.
Glossary
13F AUM: The total market value of securities reported by an institutional investment manager in quarterly SEC Form 13F filings.
Complete sell-out: When an investor sells all shares of a particular holding, reducing its position to zero.
Position: The amount of a particular security or asset held by an investor or fund.
Filing period: The specific timeframe covered by a regulatory report, such as a quarterly SEC filing.
Outperforming: When an investment achieves a higher return than a benchmark or comparable index over a given period.
Merchant solutions: Products and services designed to help businesses manage payments, shipping, and other sales-related functions.
Subscription fees: Recurring charges paid by customers for ongoing access to a platform or service.
Transaction-based: Revenue or services generated each time a customer completes a purchase or payment.
Value-added services: Additional features or offerings that enhance a core product, often for an extra fee.
Quarterly report: A financial statement released every three months, detailing a company's performance and financial position.
TTM: The 12-month period ending with the most recent quarterly report.
