SPS Commerce (NASDAQ:SPSC) Stock Gets Price Target Boost from DA Davidson

Key Points

• DA Davidson raised SPS Commerce’s price target from $65 to $70 while maintaining a neutral rating; the new target implies approximately 15.8% downside from the stock’s $83.10 price.
• SPS Commerce reported quarterly adjusted EPS of $1.39, beating the $1.23 consensus estimate, while revenue of $197.6 million narrowly exceeded expectations and increased 4.1% year over year.
• Shares fell 3.1% in Friday trading, and analysts maintain an overall “Hold” view, with an average price target of $82.30 amid concerns about the company’s elevated valuation and modest revenue growth.

SPS Commerce (NASDAQ:SPSC - Get Free Report) had its target price boosted by research analysts at DA Davidson from $65.00 to $70.00 in a report issued on Friday, Benzinga reports. The firm presently has a "neutral" rating on the software maker's stock. DA Davidson's target price would indicate a potential downside of 15.77% from the stock's current price.

SPSC has been the topic of a number of other research reports. Cantor Fitzgerald reaffirmed a "neutral" rating and issued a $70.00 price objective (up from $60.00) on shares of SPS Commerce in a research note on Friday, July 31st. Morgan Stanley reissued an "underweight" rating and set a $74.00 price objective on shares of SPS Commerce in a research note on Monday. Weiss Ratings upgraded SPS Commerce from a "sell (d+)" rating to a "hold (c-)" rating in a report on Friday, October 2nd. Citigroup reiterated a "buy" rating and set a $99.00 price target (up from $82.00) on shares of SPS Commerce in a report on Tuesday, October 20th. Finally, Needham & Company LLC reaffirmed a "buy" rating and set a $100.00 target price (up from $75.00) on shares of SPS Commerce in a research note on Wednesday, August 19th. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $82.30.

SPS Commerce Trading Down 3.1%

Shares of NASDAQ:SPSC traded down $2.68 during trading on Friday, reaching $83.10. The company had a trading volume of 405,120 shares, compared to its average volume of 646,595. SPS Commerce has a 12 month low of $49.04 and a 12 month high of $96.54. The company has a fifty day moving average of $83.31 and a two-hundred day moving average of $68.47. The stock has a market capitalization of $2.99 billion, a P/E ratio of 40.19 and a beta of 0.62.

SPS Commerce (NASDAQ:SPSC - Get Free Report) last announced its quarterly earnings results on Thursday, October 29th. The software maker reported $1.39 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.23 by $0.16. The business had revenue of $197.65 million for the quarter, compared to analyst estimates of $197.51 million. SPS Commerce had a net margin of 10.10% and a return on equity of 13.04%. The company's revenue was up 4.1% on a year-over-year basis. During the same quarter last year, the firm earned $1.13 EPS. As a group, equities research analysts predict that SPS Commerce will post 3.56 earnings per share for the current year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. SBI Securities Co. Ltd. increased its position in SPS Commerce by 72.5% during the third quarter. SBI Securities Co. Ltd. now owns 333 shares of the software maker's stock worth $27,000 after purchasing an additional 140 shares during the last quarter. Versant Capital Management Inc boosted its position in shares of SPS Commerce by 11.8% in the third quarter. Versant Capital Management Inc now owns 1,724 shares of the software maker's stock worth $142,000 after buying an additional 182 shares during the period. Nisa Investment Advisors LLC raised its stake in shares of SPS Commerce by 22.8% during the third quarter. Nisa Investment Advisors LLC now owns 1,842 shares of the software maker's stock valued at $152,000 after purchasing an additional 342 shares during the period. VELA Investment Management LLC grew its stake in shares of SPS Commerce by 1.6% during the second quarter. VELA Investment Management LLC now owns 26,091 shares of the software maker's stock valued at $1,492,000 after acquiring an additional 400 shares in the last quarter. Finally, KBC Group NV boosted its stake in shares of SPS Commerce by 38.8% during the 1st quarter. KBC Group NV now owns 1,459 shares of the software maker's stock valued at $81,000 after buying an additional 408 shares during the last quarter. 98.96% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting SPS Commerce

Here are the key news stories impacting SPS Commerce this week:

• Positive Sentiment: Third-quarter adjusted EPS was $1.39, exceeding the $1.23 consensus estimate and rising from $1.13 a year earlier. Revenue of $197.6 million also narrowly topped expectations. SPS Commerce Q3 Earnings and Revenues Beat Estimates
• Positive Sentiment: Profitability improved, with adjusted EBITDA increasing 17% to $70.9 million and GAAP net income reaching $30.7 million, compared with $25.6 million in the prior-year quarter. SPS Commerce also repurchased $48.8 million of stock during the quarter. SPS Commerce Reports Strong Third Quarter 2026 Financial Results
• Neutral Sentiment: Management forecast fourth-quarter revenue of $199.3 million to $201.3 million and GAAP diluted EPS of $0.74 to $0.79. Full-year 2026 revenue guidance is $786.9 million to $788.9 million, with GAAP EPS of $2.29 to $2.35. SPS Commerce Provides Earnings Guidance
• Negative Sentiment: Revenue increased only 4% year over year to $197.6 million, with recurring revenue also growing 4%. Results were affected by the divestiture of the 3P Revenue Recovery business and variability in the 1P Revenue Recovery take-rate model, adding uncertainty to near-term growth.
• Negative Sentiment: The earnings beat may not have been enough to satisfy investors given SPS Commerce’s relatively elevated valuation—roughly 40 times earnings—and concerns that limited top-line growth could constrain further upside.

About SPS Commerce

SPS Commerce, Inc provides cloud-based supply chain management software for retailers, suppliers, distributors and logistics providers. Its platform helps businesses manage and automate transactions and workflows across complex retail and e-commerce networks.

The company's solutions include electronic data interchange (EDI), order management, inventory visibility, fulfillment, invoice and payment processing, product information management, and supply chain analytics. These tools are designed to connect trading partners, reduce manual data entry, improve order accuracy and support more efficient movement of products from suppliers to consumers.

Founded in 2001 and headquartered in Minneapolis, Minnesota, SPS Commerce serves businesses across retail and wholesale ecosystems in North America and other international markets.

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