Capital Research Global Investors Cuts Shopify Stake to 3.0%

Ticker: SHOP · Form: SC 13G/A · Filed: 2024-02-09T00:00:00.000Z

Sentiment: bearish

Topics: institutional-ownership, stake-reduction, amendment, shopify

TL;DR

**Big investor Capital Research Global Investors just trimmed its Shopify stake to 3.0%.**

AI Summary

Capital Research Global Investors, a major institutional investor, filed an amended SC 13G/A on February 9, 2024, disclosing their ownership in Shopify Inc. As of December 29, 2023, they beneficially owned 38,257,314 Class A Subordinate Voting Shares, representing 3.0% of the company. This is a decrease from their previous filing, indicating they sold a significant portion of their holdings, which could signal a shift in their investment outlook for Shopify.

Why It Matters

This filing shows a large institutional investor has reduced its position in Shopify, which could be interpreted as a lack of confidence in the stock's near-term performance or a reallocation of capital elsewhere.

Risk Assessment

Risk Level: medium — A significant reduction in holdings by a major institutional investor can sometimes precede further stock price declines if other investors follow suit.

Analyst Insight

An investor might consider this a signal to re-evaluate their own Shopify holdings, potentially trimming their position or conducting further due diligence into the reasons behind Capital Research Global Investors' reduced stake, especially given the 3.0% ownership as of December 29, 2023.

Key Numbers

Key Players & Entities

Forward-Looking Statements

FAQ

What is the purpose of an SC 13G/A filing?

An SC 13G/A is an amendment to a Schedule 13G, which is filed by institutional investors who acquire more than 5% of a company's stock but do not intend to influence or control the company. The '/A' indicates it's an amendment to a previously filed statement, updating their ownership position, as seen with Capital Research Global Investors and Shopify Inc. on February 9, 2024.

Who is the reporting person in this filing and what is their ownership percentage?

The reporting person is Capital Research Global Investors. As of December 29, 2023, they beneficially owned 38,257,314 Class A Subordinate Voting Shares of Shopify Inc., which represents 3.0% of the class of securities, as stated in the filing.

What type of shares of Shopify Inc. are being reported in this filing?

This filing specifically reports on Shopify Inc.'s Class A Subordinate Voting Shares, identified by CUSIP Number 82509L107, as detailed in the 'Title of Class of Securities' section.

What was the 'Date of Event Which Requires Filing of this Statement'?

The 'Date of Event Which Requires Filing of this Statement' was December 29, 2023, as explicitly stated in the filing, indicating the date when the ownership change occurred.

Does Capital Research Global Investors have sole or shared voting and dispositive power over these shares?

According to the filing, Capital Research Global Investors has sole voting power over 38,176,021 shares and sole dispositive power over 38,257,314 shares. They report 0 for both shared voting power and shared dispositive power, indicating they control these shares independently.

From the Filing

0001422848-24-000013.txt : 20240209 0001422848-24-000013.hdr.sgml : 20240209 20240209174633 ACCESSION NUMBER: 0001422848-24-000013 CONFORMED SUBMISSION TYPE: SC 13G/A PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20240209 DATE AS OF CHANGE: 20240209 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: SHOPIFY INC. CENTRAL INDEX KEY: 0001594805 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] ORGANIZATION NAME: 06 Technology IRS NUMBER: 000000000 STATE OF INCORPORATION: Z4 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13G/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-88870 FILM NUMBER: 24616448 BUSINESS ADDRESS: STREET 1: 151 O'CONNOR STREET STREET 2: GROUND FLOOR CITY: OTTAWA STATE: A6 ZIP: K2P 2L8 BUSINESS PHONE: 613-241-2828 MAIL ADDRESS: STREET 1: 151 O'CONNOR STREET STREET 2: GROUND FLOOR CITY: OTTAWA STATE: A6 ZIP: K2P 2L8 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: Capital Research Global Investors CENTRAL INDEX KEY: 0001422848 ORGANIZATION NAME: IRS NUMBER: 951411037 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: SC 13G/A BUSINESS ADDRESS: STREET 1: 333 SOUTH HOPE STREET STREET 2: 55TH FL CITY: LOS ANGELES STATE: CA ZIP: 90071 BUSINESS PHONE: 213-486-9200 MAIL ADDRESS: STREET 1: 333 SOUTH HOPE STREET STREET 2: 55TH FL CITY: LOS ANGELES STATE: CA ZIP: 90071 SC 13G/A 1 SEC13G_Filing.htm SEC SCHEDULE 13G UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 13G Under the Securities Exchange Act of 1934 (Amendment No. 1 ) * Shopify Inc. (Name of Issuer) Class A Subordinate Voting Shares (Title of Class of Securities) 82509L107 (CUSIP Number) December 29, 2023 (Date of Event Which Requires Filing of this Statement) Check the appropriate box to designate the rule pursuant to which this Schedule is filed: [X] Rule 13d-1(b) [ ] Rule 13d-1(c) [ ] Rule 13d-1(d) * The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter the disclosures provided in a prior cover page. The information required in the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 (the "Act") or otherwise subject to the liabilities of that section of the Act, but shall be subject to all other provisions of the Act (however, see the Notes.) CUSIP No. 82509L107 1. NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) Capital Research Global Investors 95-1411037 2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ] (b) [ ] 3. SEC USE ONLY 4. CITIZENSHIP OR PLACE OF ORGANIZATION Delaware NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH 5. SOLE VOTING POWER 38,176,021 6. SHARED VOTING POWER 0 7. SOLE DISPOSITIVE POWER 38,257,314 8. SHARED DISPOSITIVE POWER 0 9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 38,257,314 Beneficial ownership disclaimed pursuant to Rule 13d-4 10. CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES [ ] 11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) 3.2% 12. TYPE OF REPORTING PERSON IA Item 1. (a) Name of Issuer Shopify Inc. (b) Address of Issuer's Principal Executive Offices 151 O'Connor Street, Ground Floor, Ottawa, ON K2P 2L8, CANADA Item 2. (a) Name of Person Filing Capital Research Global Investors (b) Address of Principal Business Office or, if None, Residence 333 South Hope Street, 55th Fl, Los Angeles, CA 90071 (c) Citizenship N/A (d) Title of Class of Securities Class A Subordinate Voting Shares (e) CUSIP Number 82509L107 Item 3. If This Statement is Filed Pursuant to Rule 13d-1(b), or 13d-2(b) or (c), Check Whether the Person Filing is a: (a) [ ] Broker or dealer registered under Section 15 of the Act (15 U.S.C. 78o). (b) [ ] Bank as defined in Section 3(a)(6) of the Act (15 U.S.C. 78c). (c) [ ] Insurance Company

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