SPS Commerce (NASDAQ:SPSC) Upgraded to Buy at Wall Street Zen

Key Points

• Wall Street Zen upgraded SPS Commerce from “hold” to “buy.” However, the broader analyst consensus remains “Hold,” with an average price target of $80.30.
• SPS Commerce reported quarterly EPS of $1.27, beating the $1.09 consensus estimate, while revenue reached $197.81 million and increased 5.6% year over year.
• The stock opened at $92.63, with a $3.33 billion market capitalization, and institutional investors own nearly 99% of outstanding shares.

SPS Commerce (NASDAQ:SPSC - Get Free Report) was upgraded by investment analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a note issued to investors on Sunday, Wall Street Zen reports.

A number of other equities research analysts also recently commented on SPSC. DA Davidson set a $65.00 price objective on SPS Commerce in a research report on Friday, July 31st. Stifel Nicolaus increased their target price on SPS Commerce from $70.00 to $85.00 and gave the stock a "hold" rating in a research report on Wednesday, October 14th. Morgan Stanley reiterated an "underweight" rating and set a $59.00 target price (up from $57.00) on shares of SPS Commerce in a research report on Friday, July 31st. Weiss Ratings raised SPS Commerce from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Friday, October 2nd. Finally, Citigroup restated a "buy" rating and issued a $99.00 price target (up from $82.00) on shares of SPS Commerce in a report on Tuesday. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, SPS Commerce presently has a consensus rating of "Hold" and an average target price of $80.30.

SPS Commerce Price Performance

NASDAQ:SPSC opened at $92.63 on Friday. The firm has a market cap of $3.33 billion, a PE ratio of 44.75 and a beta of 0.62. The firm has a 50 day simple moving average of $82.69 and a 200-day simple moving average of $67.39. SPS Commerce has a 1-year low of $49.04 and a 1-year high of $114.87.

SPS Commerce (NASDAQ:SPSC - Get Free Report) last announced its earnings results on Thursday, July 30th. The software maker reported $1.27 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.09 by $0.18. The firm had revenue of $197.81 million for the quarter, compared to analyst estimates of $195.46 million. SPS Commerce had a net margin of 10.10% and a return on equity of 13.04%. SPS Commerce's revenue was up 5.6% compared to the same quarter last year. During the same quarter last year, the business earned $1.00 earnings per share. SPS Commerce has set its Q3 2026 guidance at 1.200-1.230 EPS and its FY 2026 guidance at 4.840-4.930 EPS. As a group, sell-side analysts expect that SPS Commerce will post 3.56 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Sterling Capital Management LLC raised its stake in shares of SPS Commerce by 163.6% in the 3rd quarter. Sterling Capital Management LLC now owns 1,007 shares of the software maker's stock valued at $83,000 after acquiring an additional 625 shares during the period. SBI Securities Co. Ltd. lifted its holdings in shares of SPS Commerce by 72.5% during the 3rd quarter. SBI Securities Co. Ltd. now owns 333 shares of the software maker's stock valued at $27,000 after acquiring an additional 140 shares in the last quarter. Nisa Investment Advisors LLC boosted its position in SPS Commerce by 22.8% during the 3rd quarter. Nisa Investment Advisors LLC now owns 1,842 shares of the software maker's stock worth $152,000 after purchasing an additional 342 shares during the period. Cordatus Wealth Management LLC purchased a new stake in SPS Commerce during the 3rd quarter worth $347,000. Finally, Abel Hall LLC purchased a new stake in SPS Commerce during the 3rd quarter worth $292,000. Institutional investors and hedge funds own 98.96% of the company's stock.

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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