SPS Commerce (NASDAQ:SPSC) Cut to “Hold” at Wall Street Zen

Wall Street Zen lowered shares of SPS Commerce (NASDAQ:SPSC) from a buy rating to a hold rating in a research report sent to investors on Saturday morning.

Several other research firms have also commented on SPSC. Stifel Nicolaus reiterated a “hold” rating and set a $80.00 price target (down previously from $150.00) on shares of SPS Commerce in a report on Friday, October 31st. Needham & Company LLC reaffirmed a “buy” rating and set a $110.00 target price (down from $160.00) on shares of SPS Commerce in a research note on Friday, October 31st. Northland Securities set a $109.00 target price on shares of SPS Commerce in a report on Friday, October 31st. DA Davidson cut their price target on shares of SPS Commerce from $125.00 to $80.00 and set a “neutral” rating for the company in a report on Friday, October 31st. Finally, Cantor Fitzgerald downgraded SPS Commerce from an “overweight” rating to a “neutral” rating and reduced their target price for the company from $135.00 to $80.00 in a research report on Friday, October 31st. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $106.80.

SPS Commerce Trading Up 1.0%

NASDAQ:SPSC opened at $95.48 on Friday. The company has a market cap of $3.60 billion, a P/E ratio of 42.82 and a beta of 0.58. SPS Commerce has a twelve month low of $73.05 and a twelve month high of $197.59. The company’s 50-day moving average price is $85.93 and its 200-day moving average price is $105.50.

SPS Commerce (NASDAQ:SPSC) last released its quarterly earnings data on Thursday, October 30th. The software maker reported $1.13 EPS for the quarter, beating analysts’ consensus estimates of $0.99 by $0.14. SPS Commerce had a net margin of 11.65% and a return on equity of 12.17%. The company had revenue of $189.90 million during the quarter, compared to the consensus estimate of $192.68 million. During the same quarter in the prior year, the firm earned $0.92 EPS. SPS Commerce’s quarterly revenue was up 16.0% on a year-over-year basis. SPS Commerce has set its FY 2025 guidance at 4.100-4.15 EPS and its Q4 2025 guidance at 0.980-1.020 EPS. On average, analysts expect that SPS Commerce will post 2.73 earnings per share for the current year.

Insider Buying and Selling at SPS Commerce

In other news, Director Marty M. Reaume sold 1,732 shares of the firm’s stock in a transaction on Wednesday, January 7th. The shares were sold at an average price of $92.26, for a total value of $159,794.32. Following the sale, the director directly owned 9,158 shares in the company, valued at approximately $844,917.08. This trade represents a 15.90% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 0.98% of the company’s stock.

Institutional Trading of SPS Commerce

A number of hedge funds and other institutional investors have recently bought and sold shares of SPSC. Nordea Investment Management AB grew its holdings in shares of SPS Commerce by 505.3% during the second quarter. Nordea Investment Management AB now owns 1,330,237 shares of the software maker’s stock worth $177,587,000 after buying an additional 1,110,476 shares during the last quarter. Van Berkom & Associates Inc. acquired a new stake in SPS Commerce during the 3rd quarter worth approximately $51,878,000. Norges Bank purchased a new position in shares of SPS Commerce in the 2nd quarter valued at approximately $57,540,000. UBS Group AG grew its stake in shares of SPS Commerce by 806.1% in the 3rd quarter. UBS Group AG now owns 458,860 shares of the software maker’s stock valued at $47,786,000 after purchasing an additional 408,221 shares during the last quarter. Finally, Disciplined Growth Investors Inc. MN increased its holdings in shares of SPS Commerce by 86.4% in the third quarter. Disciplined Growth Investors Inc. MN now owns 792,472 shares of the software maker’s stock valued at $82,528,000 after purchasing an additional 367,346 shares during the period. 98.96% of the stock is currently owned by institutional investors and hedge funds.

SPS Commerce Company Profile

SPS Commerce, Inc is a leading provider of cloud-based supply chain management solutions that enable seamless collaboration between retailers, suppliers and logistics providers. Through its robust network, SPS Commerce connects trading partners with electronic data interchange (EDI) capabilities, helping businesses automate order processing, inventory management and fulfillment workflows. The company’s platform ensures data accuracy, accelerates order-to-cash cycles and reduces manual intervention, supporting a wide range of industries including retail, grocery, consumer goods and automotive.

The company offers a suite of services encompassing EDI, retail-ready compliance, order management and data analytics.