Federated Hermes Inc. Cuts Stock Position in SPS Commerce, Inc. (NASDAQ:SPSC)

Key Points

• Federated Hermes Inc. reduced its stake in SPS Commerce by 32.1%, selling 50,522 shares and holding approximately 0.28% of the company valued at $14.2 million.
• SPS Commerce stock recently declined by 4.6%, closing at $103.88, with a market cap of $3.94 billion and a P/E ratio of 47.65.
• Wall Street analysts have shown optimistic outlooks for SPS Commerce, with a consensus rating of "Moderate Buy" and an average price target of $165.80.

Federated Hermes Inc. reduced its position in shares of SPS Commerce, Inc. (NASDAQ:SPSC - Free Report) by 32.1% in the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 106,983 shares of the software maker's stock after selling 50,522 shares during the quarter. Federated Hermes Inc. owned 0.28% of SPS Commerce worth $14,200,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently made changes to their positions in the business. FMR LLC grew its position in SPS Commerce by 109.7% during the fourth quarter. FMR LLC now owns 1,419,831 shares of the software maker's stock valued at $261,235,000 after buying an additional 742,686 shares during the period. Conestoga Capital Advisors LLC boosted its stake in shares of SPS Commerce by 0.9% during the 1st quarter. Conestoga Capital Advisors LLC now owns 1,260,182 shares of the software maker's stock worth $167,264,000 after acquiring an additional 11,590 shares during the last quarter. Ameriprise Financial Inc. grew its position in shares of SPS Commerce by 33.4% during the 4th quarter. Ameriprise Financial Inc. now owns 765,709 shares of the software maker's stock valued at $140,882,000 after acquiring an additional 191,740 shares during the period. Northern Trust Corp increased its stake in shares of SPS Commerce by 11.3% in the 4th quarter. Northern Trust Corp now owns 510,041 shares of the software maker's stock worth $93,842,000 after purchasing an additional 51,839 shares in the last quarter. Finally, Fred Alger Management LLC increased its stake in shares of SPS Commerce by 5.6% in the 4th quarter. Fred Alger Management LLC now owns 481,317 shares of the software maker's stock worth $88,558,000 after purchasing an additional 25,414 shares in the last quarter. Hedge funds and other institutional investors own 98.96% of the company's stock.

Wall Street Analyst Weigh In

SPSC has been the subject of several recent research reports. Cantor Fitzgerald began coverage on SPS Commerce in a report on Tuesday, June 3rd. They set an "overweight" rating and a $170.00 price target for the company. Morgan Stanley cut their price objective on SPS Commerce from $180.00 to $170.00 and set an "overweight" rating for the company in a research note on Thursday, July 31st. Stifel Nicolaus decreased their target price 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. Wall Street Zen upgraded shares of SPS Commerce from a "hold" rating to a "buy" rating in a research report on Friday, July 18th. Finally, Loop Capital downgraded shares of SPS Commerce from a "buy" rating to a "hold" rating and decreased their price objective for the company from $175.00 to $120.00 in a research report on Thursday, July 31st. Five equities research analysts have rated the stock with a hold rating and six have given a buy rating to the company. According to MarketBeat.com, SPS Commerce presently has a consensus rating of "Moderate Buy" and an average target price of $165.80.

SPS Commerce Trading Up 2.2%

SPS Commerce stock traded up $2.39 during mid-day trading on Tuesday, hitting $109.48. The company had a trading volume of 188,316 shares, compared to its average volume of 341,450. The company has a market capitalization of $4.15 billion, a price-to-earnings ratio of 50.23 and a beta of 0.71. The company's fifty day moving average is $136.65 and its 200-day moving average is $142.46. SPS Commerce, Inc. has a 12-month low of $102.05 and a 12-month high of $204.20.

SPS Commerce (NASDAQ:SPSC - Get Free Report) last released its earnings results on Wednesday, July 30th. The software maker reported $1.00 EPS for the quarter, topping analysts' consensus estimates of $0.90 by $0.10. SPS Commerce had a net margin of 11.79% and a return on equity of 12.10%. The business had revenue of $187.40 million during the quarter, compared to analysts' expectations of $185.88 million. During the same quarter in the previous year, the company earned $0.80 earnings per share. The company's quarterly revenue was up 22.0% on a year-over-year basis. As a group, sell-side analysts expect that SPS Commerce, Inc. will post 2.73 EPS for the current fiscal year.

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.