SPS Commerce (NASDAQ:SPSC) Shares Cross Above Fifty Day Moving Average - Should You Sell?

Key Points

• SPS Commerce shares rose above their 50-day moving average, trading as high as $86.78 and last changing hands at $85.08, versus a 50-day average of $83.46.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $79.33; ratings include two Buys, seven Holds and one Sell.
• The company beat quarterly earnings expectations, reporting $1.39 in EPS versus $1.23 expected and $197.65 million in revenue, while revenue increased 4.1% year over year. Institutional investors own approximately 98.96% of outstanding shares.

Shares of SPS Commerce, Inc. (NASDAQ:SPSC - Get Free Report) passed above its 50 day moving average during trading on Monday. The stock has a 50 day moving average of $83.46 and traded as high as $86.78. SPS Commerce shares last traded at $85.08, with a volume of 773,651 shares traded.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on SPSC shares. Wall Street Zen raised shares of SPS Commerce from a "hold" rating to a "buy" rating in a research report on Sunday, October 25th. Morgan Stanley reiterated an "underweight" rating and issued a $74.00 price target on shares of SPS Commerce in a research note on Monday, October 26th. Stifel Nicolaus boosted their price target on shares of SPS Commerce from $70.00 to $85.00 and gave the stock a "hold" rating in a research report on Wednesday, October 14th. DA Davidson increased their price objective on shares of SPS Commerce from $65.00 to $70.00 and gave the stock a "neutral" rating in a research note on Friday. Finally, Cantor Fitzgerald restated a "neutral" rating and issued a $70.00 price objective (up from $60.00) on shares of SPS Commerce in a report on Friday, July 31st. Two investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $79.33.

SPS Commerce Price Performance

The company's 50-day simple moving average is $83.46 and its 200-day simple moving average is $68.37. The stock has a market capitalization of $3.06 billion, a P/E ratio of 37.81 and a beta of 0.62.

SPS Commerce (NASDAQ:SPSC - Get Free Report) last announced its quarterly earnings data on Thursday, October 29th. The software maker reported $1.39 EPS for the quarter, beating analysts' consensus estimates of $1.23 by $0.16. The company had revenue of $197.65 million during the quarter, compared to the consensus estimate of $197.51 million. SPS Commerce had a net margin of 10.10% and a return on equity of 13.04%. The company's quarterly revenue was up 4.1% on a year-over-year basis. During the same quarter last year, the firm posted $1.13 EPS. On average, analysts forecast that SPS Commerce, Inc. will post 3.59 earnings per share for the current fiscal year.

Hedge Funds Weigh In On SPS Commerce

Hedge funds and other institutional investors have recently bought and sold shares of the business. BlackRock Inc. bought a new stake in shares of SPS Commerce during the second quarter worth approximately $339,259,000. State Street Corp grew its position in shares of SPS Commerce by 3.1% in the second quarter. State Street Corp now owns 1,545,696 shares of the software maker's stock valued at $88,367,000 after purchasing an additional 45,886 shares during the last quarter. Bank of America Corp DE grew its position in shares of SPS Commerce by 3.3% in the first quarter. Bank of America Corp DE now owns 998,622 shares of the software maker's stock valued at $55,593,000 after purchasing an additional 31,434 shares during the last quarter. Jupiter Topco LLC bought a new position in shares of SPS Commerce during the second quarter worth approximately $56,260,000. Finally, Van Berkom & Associates Inc. increased its stake in shares of SPS Commerce by 9.9% during the first quarter. Van Berkom & Associates Inc. now owns 678,236 shares of the software maker's stock worth $37,757,000 after purchasing an additional 61,350 shares during the period. Institutional investors own 98.96% of the company's stock.

SPS Commerce Company Profile

SPS Commerce, Inc provides cloud-based supply chain management software for retailers, suppliers, distributors and logistics providers. Its platform helps businesses manage and automate transactions and workflows across complex retail and e-commerce networks.

The company's solutions include electronic data interchange (EDI), order management, inventory visibility, fulfillment, invoice and payment processing, product information management, and supply chain analytics. These tools are designed to connect trading partners, reduce manual data entry, improve order accuracy and support more efficient movement of products from suppliers to consumers.

Founded in 2001 and headquartered in Minneapolis, Minnesota, SPS Commerce serves businesses across retail and wholesale ecosystems in North America and other international markets.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.