Irenic Capital Management LP Boosts Holdings in SPS Commerce, Inc. $SPSC

Key Points

• Irenic Capital Management increased its SPS Commerce stake by 32.2% in the first quarter, adding 145,638 shares to reach 597,704 shares valued at approximately $33.3 million.
• Institutional ownership remains very high at 98.96%, with several other hedge funds also expanding or initiating positions in the company.
• Analyst sentiment is mixed: SPS Commerce has a consensus rating of “Hold” and an average price target of $75.82, while the stock recently traded at $68.50 after reporting better-than-expected quarterly EPS of $1.10.

Irenic Capital Management LP raised its holdings in shares of SPS Commerce, Inc. (NASDAQ:SPSC - Free Report) by 32.2% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 597,704 shares of the software maker's stock after purchasing an additional 145,638 shares during the period. SPS Commerce accounts for approximately 2.2% of Irenic Capital Management LP's investment portfolio, making the stock its 14th biggest holding. Irenic Capital Management LP owned about 1.63% of SPS Commerce worth $33,274,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently made changes to their positions in the business. NewEdge Advisors LLC grew 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 worth $30,000 after buying an additional 191 shares during the last quarter. Advisory Services Network LLC acquired a new stake in SPS Commerce in the third quarter worth about $32,000. Global Retirement Partners LLC boosted its holdings in SPS Commerce by 2,130.0% in the fourth quarter. Global Retirement Partners LLC now owns 446 shares of the software maker's stock worth $40,000 after acquiring an additional 426 shares in the last quarter. Summit Securities Group LLC purchased a new stake in shares of SPS Commerce during the fourth quarter worth about $45,000. Finally, Leonteq Securities AG acquired a new position in shares of SPS Commerce during the fourth quarter valued at about $52,000. Hedge funds and other institutional investors own 98.96% of the company's stock.

Wall Street Analyst Weigh In

A number of analysts recently commented on SPSC shares. Needham & Company LLC reiterated a "buy" rating on shares of SPS Commerce in a research note on Tuesday. Zacks Research upgraded shares of SPS Commerce from a "strong sell" rating to a "hold" rating in a research note on Monday, July 20th. Morgan Stanley downgraded shares of SPS Commerce from an "overweight" rating to an "underweight" rating and lowered their price objective for the stock from $70.00 to $57.00 in a research note on Tuesday, July 21st. DA Davidson set a $55.00 target price on SPS Commerce and gave the company a "neutral" rating in a research report on Wednesday, July 1st. Finally, Stifel Nicolaus set a $60.00 target price on SPS Commerce in a research note on Friday, May 1st. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, seven have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $75.82.

SPS Commerce Price Performance

NASDAQ:SPSC opened at $68.50 on Wednesday. The company's fifty day moving average price is $57.97 and its 200-day moving average price is $62.64. SPS Commerce, Inc. has a 1-year low of $49.04 and a 1-year high of $141.98. The firm has a market capitalization of $2.51 billion, a P/E ratio of 28.54 and a beta of 0.56.

SPS Commerce (NASDAQ:SPSC - Get Free Report) last announced its quarterly earnings results on Thursday, April 30th. The software maker reported $1.10 earnings per share for the quarter, topping the consensus estimate of $0.97 by $0.13. SPS Commerce had a return on equity of 12.43% and a net margin of 11.92%.The company had revenue of $192.12 million for the quarter, compared to the consensus estimate of $192.50 million. During the same period last year, the firm earned $1.00 EPS. The firm's revenue for the quarter was up 5.8% compared to the same quarter last year. SPS Commerce has set its FY 2026 guidance at 4.730-4.760 EPS and its Q2 2026 guidance at 1.060-1.090 EPS. Equities analysts anticipate that SPS Commerce, Inc. will post 3.43 EPS for the current fiscal year.

SPS Commerce Company Profile

SPS Commerce, Inc is a leading provider of cloud-based supply chain management solutions that enable seamless collaboration between retailers, suppliers and logistics providers. Through its robust network, SPS Commerce connects trading partners with electronic data interchange (EDI) capabilities, helping businesses automate order processing, inventory management and fulfillment workflows. The company's platform ensures data accuracy, accelerates order-to-cash cycles and reduces manual intervention, supporting a wide range of industries including retail, grocery, consumer goods and automotive.

The company offers a suite of services encompassing EDI, retail-ready compliance, order management and data analytics.

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