Irenic Capital Management LP Invests $40.29 Million in SPS Commerce, Inc. $SPSC

Key Points

• Irenic Capital Management disclosed a new fourth-quarter stake in SPS Commerce, buying 452,066 shares worth about $40.29 million. The position represents about 2.7% of Irenic’s portfolio and roughly 1.20% of SPS Commerce.
• SPS Commerce recently reported better-than-expected earnings of $1.10 per share, topping estimates, while revenue rose 5.8% year over year to $192.12 million. The company also issued FY 2026 and Q2 2026 guidance.
• Despite the earnings beat, the stock has remained under pressure, opening at $52.84 and trading well below its 12-month high of $143.55. Analyst sentiment is mixed, with an overall Hold rating and an average price target of $76.45.

Irenic Capital Management LP purchased a new position in shares of SPS Commerce, Inc. (NASDAQ:SPSC - Free Report) during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor purchased 452,066 shares of the software maker's stock, valued at approximately $40,293,000. SPS Commerce accounts for approximately 2.7% of Irenic Capital Management LP's investment portfolio, making the stock its 9th biggest position. Irenic Capital Management LP owned about 1.20% of SPS Commerce at the end of the most recent quarter.

Other institutional investors and hedge funds have also modified their holdings of the company. Champlain Investment Partners LLC acquired a new stake in shares of SPS Commerce in the 3rd quarter worth approximately $36,735,000. Tudor Investment Corp ET AL grew its holdings in shares of SPS Commerce by 161.5% in the 3rd quarter. Tudor Investment Corp ET AL now owns 70,389 shares of the software maker's stock worth $7,330,000 after acquiring an additional 43,476 shares during the period. Lightrock Netherlands B.V. acquired a new stake in shares of SPS Commerce in the 4th quarter worth approximately $7,389,000. Numerai GP LLC grew its holdings in shares of SPS Commerce by 529.4% in the 3rd quarter. Numerai GP LLC now owns 59,244 shares of the software maker's stock worth $6,170,000 after acquiring an additional 49,831 shares during the period. Finally, Bessemer Group Inc. grew its holdings in shares of SPS Commerce by 1,149.1% in the 4th quarter. Bessemer Group Inc. now owns 98,208 shares of the software maker's stock worth $8,753,000 after acquiring an additional 90,346 shares during the period. Institutional investors and hedge funds own 98.96% of the company's stock.

Insider Activity

In other news, Director Marty M. Reaume sold 1,000 shares of the firm's stock in a transaction on Tuesday, April 7th. The stock was sold at an average price of $57.90, for a total transaction of $57,900.00. Following the sale, the director owned 9,158 shares in the company, valued at $530,248.20. This trade represents a 9.84% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.58% of the stock is owned by company insiders.

SPS Commerce Price Performance

SPS Commerce stock opened at $52.84 on Thursday. SPS Commerce, Inc. has a 12-month low of $49.04 and a 12-month high of $143.55. The stock has a market capitalization of $1.94 billion, a P/E ratio of 22.02 and a beta of 0.57. The firm's 50-day moving average is $54.80 and its two-hundred day moving average is $68.35.

SPS Commerce (NASDAQ:SPSC - Get Free Report) last released its quarterly earnings results on Thursday, April 30th. The software maker reported $1.10 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.97 by $0.13. SPS Commerce had a net margin of 11.92% and a return on equity of 12.43%. The company had revenue of $192.12 million for the quarter, compared to analysts' expectations of $192.51 million. During the same period last year, the company 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. As a group, analysts forecast that SPS Commerce, Inc. will post 3.41 EPS for the current year.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on SPSC shares. Needham & Company LLC lowered their price objective on shares of SPS Commerce from $110.00 to $75.00 and set a "buy" rating on the stock in a research note on Friday, May 1st. Stifel Nicolaus set a $60.00 price objective on shares of SPS Commerce in a research note on Friday, May 1st. Citigroup lowered their price objective on shares of SPS Commerce from $84.00 to $76.00 and set a "buy" rating on the stock in a research note on Monday, May 4th. Weiss Ratings cut shares of SPS Commerce from a "sell (d+)" rating to a "sell (d)" rating in a research note on Wednesday, May 13th. Finally, Cantor Fitzgerald set a $60.00 target price on SPS Commerce and gave the company a "neutral" rating in a report on Friday, May 1st. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $76.45.

About SPS Commerce

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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