SPS Commerce, Inc. $SPSC Shares Acquired by Principal Financial Group Inc.

Key Points

• Principal Financial Group increased its SPS Commerce stake by 16.3% in the first quarter, buying 36,905 additional shares and bringing its holding to 263,634 shares worth about $14.7 million.
• SPS Commerce reported better-than-expected quarterly earnings, posting $1.10 EPS versus the $0.97 consensus, while revenue came in slightly below estimates at $192.12 million and rose 5.8% year over year.
• Wall Street remains cautious on the stock: analysts have a consensus rating of “Hold” with an average price target of $75.82, even though some firms, including Citigroup, still rate it a buy.

Principal Financial Group Inc. lifted its stake in SPS Commerce, Inc. (NASDAQ:SPSC - Free Report) by 16.3% in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 263,634 shares of the software maker's stock after purchasing an additional 36,905 shares during the period. Principal Financial Group Inc. owned approximately 0.71% of SPS Commerce worth $14,677,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also recently made changes to their positions in the company. UBS Group AG grew its position in SPS Commerce by 182.3% during the fourth quarter. UBS Group AG now owns 1,295,267 shares of the software maker's stock worth $115,447,000 after buying an additional 836,407 shares during the period. Norges Bank purchased a new position in SPS Commerce in the fourth quarter valued at about $49,883,000. Irenic Capital Management LP acquired a new stake in shares of SPS Commerce during the 4th quarter valued at approximately $40,293,000. Disciplined Growth Investors Inc. MN lifted its position in shares of SPS Commerce by 86.4% during the 3rd quarter. Disciplined Growth Investors Inc. MN now owns 792,472 shares of the software maker's stock valued at $82,528,000 after acquiring an additional 367,346 shares during the period. Finally, Goldman Sachs Group Inc. boosted its stake in shares of SPS Commerce by 69.1% during the 4th quarter. Goldman Sachs Group Inc. now owns 661,610 shares of the software maker's stock worth $58,969,000 after acquiring an additional 270,424 shares in the last quarter. Institutional investors and hedge funds own 98.96% of the company's stock.

SPS Commerce Price Performance

Shares of SPS Commerce stock opened at $58.98 on Friday. SPS Commerce, Inc. has a 1 year low of $49.04 and a 1 year high of $141.98. The company has a market capitalization of $2.17 billion, a P/E ratio of 24.57 and a beta of 0.56. The business has a 50 day moving average price of $57.20 and a 200 day moving average price of $63.20.

SPS Commerce (NASDAQ:SPSC - Get Free Report) last announced its earnings results on Thursday, April 30th. The software maker reported $1.10 EPS for the quarter, beating analysts' consensus estimates of $0.97 by $0.13. The firm had revenue of $192.12 million for the quarter, compared to analysts' expectations of $192.50 million. SPS Commerce had a return on equity of 12.43% and a net margin of 11.92%.SPS Commerce's quarterly revenue was up 5.8% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.00 EPS. 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, research analysts expect that SPS Commerce, Inc. will post 3.43 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of research firms recently weighed in on SPSC. Cantor Fitzgerald set a $60.00 price target on SPS Commerce and gave the stock a "neutral" rating in a report on Friday, May 1st. Rothschild & Co Redburn set a $60.00 price objective on SPS Commerce and gave the stock a "neutral" rating in a report on Thursday, April 16th. Stifel Nicolaus set a $60.00 target price on SPS Commerce in a research report on Friday, May 1st. Citigroup restated a "buy" rating and issued a $82.00 price target (up from $76.00) on shares of SPS Commerce in a research report on Tuesday. Finally, DA Davidson set a $55.00 price target on SPS Commerce and gave the stock a "neutral" rating in a research note on Wednesday, July 1st. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, seven have issued a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $75.82.

SPS Commerce 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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