DA Davidson Downgrades SPS Commerce (NASDAQ:SPSC) to Hold

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 investment analysts at DA Davidson from a "strong-buy" rating to a "hold" rating in a note issued to investors on Thursday, July 31st, Marketbeat Ratings reports. They currently have a $125.00 price objective on the software maker's stock, down from their prior price objective of $175.00. DA Davidson's target price suggests a potential upside of 14.74% from the stock'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.

SPSC has been the topic of a number of other research reports. Needham & Company LLC decreased their target price on SPS Commerce from $210.00 to $160.00 and set a "buy" rating on the stock in a research report on Thursday, July 31st. Morgan Stanley decreased their price target on shares of SPS Commerce from $180.00 to $170.00 and set an "overweight" rating on the stock in a report on Thursday, July 31st. Stifel Nicolaus dropped their price objective on shares of SPS Commerce from $175.00 to $165.00 and set a "buy" rating for the company in a research note on Thursday, July 31st. Loop Capital cut shares of SPS Commerce from a "buy" rating to a "hold" rating and decreased their target price for the stock from $175.00 to $120.00 in a research note on Thursday, July 31st. Finally, Robert W. Baird increased their price target on SPS Commerce from $154.00 to $159.00 and gave the company a "neutral" rating in a research note on Friday, April 25th. Five investment analysts have rated the stock with a hold rating and six have issued a buy rating to the company. According to data from MarketBeat.com, SPS Commerce presently has an average rating of "Moderate Buy" and a consensus price target of $165.80.

SPS Commerce Stock Performance

Shares of NASDAQ SPSC traded down $1.46 during trading hours on Thursday, hitting $108.94. 577,865 shares of the stock were exchanged, compared to its average volume of 461,023. SPS Commerce has a 1-year low of $102.05 and a 1-year high of $204.20. The company has a market cap of $4.13 billion, a PE ratio of 49.97 and a beta of 0.71. The company's fifty day simple moving average is $134.61 and its two-hundred day simple moving average is $141.44.

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 for the quarter, beating 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 firm had revenue of $187.40 million for the quarter, compared to the consensus estimate of $185.88 million. During the same quarter last year, the business posted $0.80 EPS. The company's revenue was up 22.0% compared to the same quarter last year. As a group, sell-side analysts expect that SPS Commerce will post 2.73 EPS for the current fiscal year.

Institutional Investors Weigh In On SPS Commerce

Large investors have recently modified their holdings of the company. Illinois Municipal Retirement Fund boosted its position in SPS Commerce by 3.5% during the second quarter. Illinois Municipal Retirement Fund now owns 24,435 shares of the software maker's stock valued at $3,325,000 after acquiring an additional 835 shares during the last quarter. Profund Advisors LLC lifted its stake in shares of SPS Commerce by 6.4% in the 2nd quarter. Profund Advisors LLC now owns 1,892 shares of the software maker's stock valued at $257,000 after purchasing an additional 114 shares during the period. Zions Bancorporation National Association UT boosted its position in shares of SPS Commerce by 4.5% during the 2nd quarter. Zions Bancorporation National Association UT now owns 17,618 shares of the software maker's stock valued at $2,398,000 after purchasing an additional 757 shares in the last quarter. Amica Mutual Insurance Co. grew its stake in SPS Commerce by 20.1% during the second quarter. Amica Mutual Insurance Co. now owns 7,224 shares of the software maker's stock worth $983,000 after purchasing an additional 1,207 shares during the period. Finally, Campbell & CO Investment Adviser LLC bought a new stake in SPS Commerce in the second quarter worth approximately $4,767,000. 98.96% of the stock is currently owned by institutional investors and hedge funds.

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.