DA Davidson Reaffirms Neutral Rating for SPS Commerce (NASDAQ:SPSC)

Key Points

• DA Davidson has reaffirmed a neutral rating for SPS Commerce (NASDAQ:SPSC), setting a target price of $125.00, indicating a potential upside of 19.16% from the stock's previous close.
• Five analysts have rated SPS Commerce as a Buy and five have issued a Hold rating, resulting in a consensus rating of "Moderate Buy" and a target price of $162.30.
• SPS Commerce reported a quarterly earnings per share (EPS) of $1.00, surpassing estimates, and its revenue increased by 22.0% year-over-year.

SPS Commerce (NASDAQ:SPSC - Get Free Report)'s stock had its "neutral" rating restated by stock analysts at DA Davidson in a research report issued to clients and investors on Thursday,Benzinga reports. They currently have a $125.00 price objective on the software maker's stock. DA Davidson's target price would suggest a potential upside of 19.16% from the stock's previous close.

Several other analysts have also recently issued reports on the company. Wall Street Zen upgraded SPS Commerce from a "hold" rating to a "buy" rating in a report on Saturday, September 20th. Needham & Company LLC reiterated a "buy" rating and issued a $160.00 price objective on shares of SPS Commerce in a report on Wednesday. Loop Capital cut shares of SPS Commerce from a "buy" rating to a "hold" rating and cut their price target for the stock from $175.00 to $120.00 in a report on Thursday, July 31st. Stifel Nicolaus decreased their price target on shares of SPS Commerce from $175.00 to $165.00 and set a "buy" rating on the stock in a research note on Thursday, July 31st. Finally, Morgan Stanley decreased their target price on SPS Commerce from $180.00 to $170.00 and set an "overweight" rating for the company in a report on Thursday, July 31st. Five equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat.com, SPS Commerce currently has a consensus rating of "Moderate Buy" and a consensus target price of $162.30.

SPS Commerce Trading Down 2.4%

SPSC traded down $2.59 during midday trading on Thursday, hitting $104.90. 143,549 shares of the company traded hands, compared to its average volume of 362,594. The business has a 50 day simple moving average of $115.67 and a two-hundred day simple moving average of $129.58. SPS Commerce has a 52-week low of $102.05 and a 52-week high of $201.06. The company has a market capitalization of $3.98 billion, a price-to-earnings ratio of 48.09 and a beta of 0.70.

SPS Commerce (NASDAQ:SPSC - Get Free Report) last released its quarterly earnings results on Wednesday, July 30th. The software maker reported $1.00 earnings per share for the quarter, topping the consensus estimate of $0.90 by $0.10. The firm had revenue of $187.40 million during the quarter, compared to the consensus estimate of $185.88 million. SPS Commerce had a net margin of 11.79% and a return on equity of 12.10%. The company's revenue for the quarter was up 22.0% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.80 EPS. SPS Commerce has set its FY 2025 guidance at 3.990-4.040 EPS. Q3 2025 guidance at 0.960-1.000 EPS. Equities research analysts anticipate that SPS Commerce will post 2.73 earnings per share for the current year.

Institutional Trading of SPS Commerce

A number of hedge funds and other institutional investors have recently made changes to their positions in SPSC. UMB Bank n.a. boosted its holdings in shares of SPS Commerce by 60.6% in the second quarter. UMB Bank n.a. now owns 212 shares of the software maker's stock valued at $29,000 after acquiring an additional 80 shares in the last quarter. MassMutual Private Wealth & Trust FSB lifted its position in SPS Commerce by 126.3% in the first quarter. MassMutual Private Wealth & Trust FSB now owns 224 shares of the software maker's stock worth $30,000 after purchasing an additional 125 shares during the period. NewEdge Advisors LLC boosted its stake in SPS Commerce by 545.7% during the 1st quarter. NewEdge Advisors LLC now owns 226 shares of the software maker's stock valued at $30,000 after purchasing an additional 191 shares in the last quarter. Allworth Financial LP increased its position in shares of SPS Commerce by 296.6% during the 1st quarter. Allworth Financial LP now owns 234 shares of the software maker's stock valued at $33,000 after purchasing an additional 175 shares during the period. Finally, Caitong International Asset Management Co. Ltd increased its position in shares of SPS Commerce by 105.4% during the 1st quarter. Caitong International Asset Management Co. Ltd now owns 302 shares of the software maker's stock valued at $40,000 after purchasing an additional 155 shares during the period. 98.96% of the stock is currently owned by institutional investors.

About SPS Commerce

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.

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