SPS Commerce (NASDAQ:SPSC) Stock Rating Lowered by DA Davidson

Key Points

• DA Davidson has reaffirmed a "neutral" rating for SPS Commerce (NASDAQ:SPSC) with a revised price target of $125.00, down from $175.00, indicating a potential upside of 12.91% from the previous close.
• SPS Commerce shares experienced a significant decline of 20.7%, trading down to $110.71, with major trading volumes exceeding typical levels.
• Recent earnings reports indicated that SPS Commerce achieved a net margin of 12.13% with revenues of $187.40 million for the quarter, reflecting a 22.0% increase year-over-year.

SPS Commerce (NASDAQ:SPSC - Get Free Report) was downgraded by DA Davidson from a "strong-buy" rating to a "hold" rating in a research note issued on Thursday, Marketbeat reports. They presently have a $125.00 target price on the software maker's stock, down from their previous target price of $175.00. DA Davidson's target price points to a potential upside of 20.33% from the company's previous close. DA Davidson also issued estimates for SPS Commerce's Q3 2025 earnings at $0.75 EPS and FY2025 earnings at $2.98 EPS.

Several other equities analysts also recently weighed in on the company. Cantor Fitzgerald initiated coverage on SPS Commerce in a research note on Tuesday, June 3rd. They issued an "overweight" rating and a $170.00 price objective for the company. Loop Capital cut SPS Commerce from a "buy" rating to a "hold" rating and lowered their target price for the company from $175.00 to $120.00 in a report on Thursday. Stifel Nicolaus lowered their target price on SPS Commerce from $175.00 to $165.00 and set a "buy" rating on the stock in a report on Thursday. Needham & Company LLC lowered their target price on SPS Commerce from $210.00 to $160.00 and set a "buy" rating on the stock in a report on Thursday. Finally, Robert W. Baird increased their target price on SPS Commerce from $154.00 to $159.00 and gave the company a "neutral" rating in a report on Friday, April 25th. Five analysts have rated the stock with a hold rating and six have assigned a buy rating to the stock. According to data from MarketBeat.com, SPS Commerce presently has a consensus rating of "Moderate Buy" and an average price target of $165.80.

SPS Commerce Price Performance

Shares of SPSC stock traded down $4.98 during trading hours on Thursday, reaching $103.88. 817,312 shares of the company's stock were exchanged, compared to its average volume of 365,464. The company has a market cap of $3.94 billion, a P/E ratio of 47.65 and a beta of 0.71. The company's 50 day moving average is $137.36 and its two-hundred day moving average is $143.69. SPS Commerce has a 1 year low of $103.18 and a 1 year high of $204.21.

SPS Commerce (NASDAQ:SPSC - Get Free Report) last issued its earnings results on Wednesday, July 30th. The software maker reported $1.00 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.90 by $0.10. SPS Commerce had a return on equity of 12.10% and a net margin of 11.79%. The business had revenue of $187.40 million during the quarter, compared to the consensus estimate of $185.88 million. During the same period in the prior year, the business posted $0.80 EPS. The company's revenue for the quarter was up 22.0% on a year-over-year basis. As a group, analysts predict that SPS Commerce will post 2.73 EPS 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 SPSC. FMR LLC raised its position in SPS Commerce by 109.7% in the fourth quarter. FMR LLC now owns 1,419,831 shares of the software maker's stock valued at $261,235,000 after purchasing an additional 742,686 shares during the period. Nordea Investment Management AB raised its position in SPS Commerce by 505.3% in the second quarter. Nordea Investment Management AB now owns 1,330,237 shares of the software maker's stock valued at $177,587,000 after purchasing an additional 1,110,476 shares during the period. Conestoga Capital Advisors LLC raised its position in SPS Commerce by 0.9% in the first quarter. Conestoga Capital Advisors LLC now owns 1,260,182 shares of the software maker's stock valued at $167,264,000 after purchasing an additional 11,590 shares during the period. Kayne Anderson Rudnick Investment Management LLC raised its position in SPS Commerce by 34.1% in the first quarter. Kayne Anderson Rudnick Investment Management LLC now owns 887,615 shares of the software maker's stock valued at $117,813,000 after purchasing an additional 225,848 shares during the period. Finally, Ameriprise Financial Inc. raised its position in SPS Commerce by 33.4% in the fourth quarter. Ameriprise Financial Inc. now owns 765,709 shares of the software maker's stock valued at $140,882,000 after purchasing an additional 191,740 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 in the United States and internationally. It offers solutions through the SPS Commerce, a cloud-based platform that enhances the way retailers, grocers, suppliers, distributors, and logistics firms manage and fulfill omnichannel orders, optimize sell-through performance, and automate new trading relationships.