Wall Street Zen Upgrades SPS Commerce (NASDAQ:SPSC) to "Buy"

Key Points

• Wall Street Zen upgraded SPS Commerce to “Buy” from “Hold,” while the broader analyst consensus remains “Hold” with an average price target of $78.60.
• SPS Commerce reported quarterly EPS of $1.27, beating expectations of $1.09, while revenue reached $197.81 million, up 5.6% year over year and slightly above estimates.
• The stock opened at $85.25, with a $3.07 billion market capitalization; institutional investors and hedge funds own approximately 98.96% of outstanding shares.

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

Several other brokerages also recently commented on SPSC. Cantor Fitzgerald reiterated a "neutral" rating and issued a $70.00 target price (up from $60.00) on shares of SPS Commerce in a report on Friday, July 31st. Zacks Research raised shares of SPS Commerce from a "strong sell" rating to a "hold" rating in a research report on Monday, July 20th. Stifel Nicolaus upped their price target on shares of SPS Commerce from $70.00 to $85.00 and gave the company a "hold" rating in a report on Wednesday. Needham & Company LLC reaffirmed a "buy" rating and issued a $100.00 price target (up from $75.00) on shares of SPS Commerce in a research report on Wednesday, August 19th. Finally, DA Davidson set a $65.00 price target on SPS Commerce in a research report on Friday, July 31st. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, SPS Commerce currently has an average rating of "Hold" and an average target price of $78.60.

SPS Commerce Stock Performance

SPSC opened at $85.25 on Friday. The business has a 50 day moving average price of $81.44 and a 200 day moving average price of $66.22. SPS Commerce has a twelve month low of $49.04 and a twelve month high of $114.87. The firm has a market cap of $3.07 billion, a P/E ratio of 25.99 and a beta of 0.62.

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. SPS Commerce had a return on equity of 13.04% and a net margin of 10.10%. The firm had revenue of $197.81 million during the quarter, compared to analysts' expectations of $195.46 million. During the same quarter in the prior year, the business earned $1.00 earnings per share. The company's revenue was up 5.6% on a year-over-year basis. 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, analysts anticipate that SPS Commerce will post 3.56 earnings per share for the current fiscal year.

Institutional Investors Weigh In On SPS Commerce

A number of institutional investors have recently added to or reduced their stakes in the company. Vontobel Holding Ltd. bought a new stake in shares of SPS Commerce during the third quarter valued at approximately $229,000. Castle Rock Wealth Management LLC acquired a new position in shares of SPS Commerce in the third quarter valued at $630,000. GAMMA Investing LLC raised its stake in shares of SPS Commerce by 17.2% in the third quarter. GAMMA Investing LLC now owns 3,904 shares of the software maker's stock valued at $322,000 after purchasing an additional 573 shares in the last quarter. Farther Finance Advisors LLC lifted its position in SPS Commerce by 88.6% in the third quarter. Farther Finance Advisors LLC now owns 1,090 shares of the software maker's stock worth $90,000 after purchasing an additional 512 shares during the period. Finally, Moody National Bank Trust Division bought a new position in SPS Commerce in the third quarter worth $1,336,000. 98.96% of the stock is owned by institutional investors and hedge funds.

About SPS Commerce

SPS Commerce, Inc provides cloud-based supply chain management software for retailers, suppliers, distributors and logistics providers. Its platform helps trading partners connect and exchange business documents, coordinate orders and shipments, manage product information, and improve visibility across the retail supply chain.

The company's offerings include electronic data interchange (EDI), order management, fulfillment and shipping tools, product content management, inventory visibility, analytics and retail compliance solutions.

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