SPS Commerce, Inc. (NASDAQ:SPSC) Receives Average Recommendation of "Hold" from Brokerages

Key Points

• Analyst consensus is “Hold”: Eleven brokerages cover SPS Commerce, with six hold, two buy, one strong-buy and two sell ratings. The average 12-month price target is $77.10.
• Recent results exceeded expectations: SPS Commerce reported quarterly EPS of $1.27 versus the $1.09 consensus estimate, while revenue reached $197.81 million, up 5.6% year over year and above forecasts.
• Institutional ownership remains high: Institutional investors and hedge funds own 98.96% of the company, with several major holders increasing their positions during the second quarter.

SPS Commerce, Inc. (NASDAQ:SPSC - Get Free Report) has been assigned a consensus recommendation of "Hold" from the eleven ratings firms that are presently covering the company, Marketbeat Ratings reports. Two research analysts have rated the stock with a sell rating, six have assigned a hold rating, two have issued a buy rating and one has assigned a strong buy rating to the company. The average 12 month price objective among brokers that have issued a report on the stock in the last year is $77.10.

Several analysts recently commented on the company. Citigroup reaffirmed a "buy" rating and set a $82.00 price objective (up from $76.00) on shares of SPS Commerce in a research note on Tuesday, July 21st. Morgan Stanley restated an "underweight" rating and issued a $59.00 price target (up from $57.00) on shares of SPS Commerce in a report on Friday, July 31st. Zacks Research raised SPS Commerce from a "strong sell" rating to a "hold" rating in a research report on Monday, July 20th. Weiss Ratings upgraded SPS Commerce from a "sell (d)" rating to a "sell (d+)" rating in a report on Thursday, August 6th. Finally, Stifel Nicolaus set a $70.00 price objective on SPS Commerce and gave the company a "hold" rating in a research report on Friday, July 31st.

SPS Commerce Stock Performance

Shares of NASDAQ SPSC opened at $82.69 on Friday. The stock has a market cap of $2.98 billion, a P/E ratio of 39.95 and a beta of 0.51. The firm has a 50 day moving average price of $76.54 and a 200 day moving average price of $63.54. SPS Commerce has a 52-week low of $49.04 and a 52-week high of $114.87.

SPS Commerce (NASDAQ:SPSC - Get Free Report) last issued its earnings results on Thursday, July 30th. The software maker reported $1.27 EPS for the quarter, beating the consensus estimate of $1.09 by $0.18. The firm had revenue of $197.81 million during the quarter, compared to the consensus estimate of $195.46 million. SPS Commerce had a net margin of 10.10% and a return on equity of 13.04%. The business's quarterly revenue was up 5.6% on a year-over-year basis. During the same quarter in the prior year, the firm 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. Analysts predict that SPS Commerce will post 3.56 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in SPSC. State Street Corp increased its position in shares of SPS Commerce by 3.1% during the second quarter. State Street Corp now owns 1,545,696 shares of the software maker's stock worth $88,367,000 after acquiring an additional 45,886 shares in the last quarter. The Manufacturers Life Insurance Company lifted its position in SPS Commerce by 7.5% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 18,323 shares of the software maker's stock valued at $1,048,000 after acquiring an additional 1,281 shares in the last quarter. Palogic Value Management L.P. lifted its position in SPS Commerce by 33.5% in the 2nd quarter. Palogic Value Management L.P. now owns 20,020 shares of the software maker's stock valued at $1,145,000 after acquiring an additional 5,020 shares in the last quarter. Integrated Wealth Concepts LLC acquired a new position in SPS Commerce in the 2nd quarter worth $38,000. Finally, Allworth Financial LP boosted its stake in SPS Commerce by 123.2% in the 2nd quarter. Allworth Financial LP now owns 779 shares of the software maker's stock worth $45,000 after purchasing an additional 430 shares during the period. Institutional investors and hedge funds own 98.96% of the company's stock.

SPS Commerce Company Profile

SPS Commerce, Inc provides cloud-based supply chain management solutions that help retailers, suppliers, distributors and other trading partners manage commerce operations. Its platform is designed to connect businesses and automate the exchange of critical information across supply chain and retail processes.

The company's products and services support functions including electronic data interchange, order management, inventory and product information management, fulfillment, invoicing, analytics and supplier onboarding.

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