SPS Commerce, Inc. (NASDAQ:SPSC) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• SPS Commerce, Inc. has received an average recommendation of "Moderate Buy" from ten brokerage firms, with an average 12-month price target of $165.80.
• Recent institutional activities include significant purchases from hedge funds, with 98.96% of the stock now owned by institutional investors.
• SPS Commerce reported a quarterly earnings per share (EPS) of $1.00, surpassing analysts' expectations, and achieved a 22% year-over-year revenue growth.

SPS Commerce, Inc. (NASDAQ:SPSC - Get Free Report) has earned a consensus recommendation of "Moderate Buy" from the ten ratings firms that are covering the firm, MarketBeat.com reports. Five research analysts have rated the stock with a hold recommendation and five have issued a buy recommendation on the company. The average 12-month price target among analysts that have issued ratings on the stock in the last year is $165.80.

SPSC has been the topic of a number of research analyst reports. DA Davidson cut shares of SPS Commerce from a "strong-buy" rating to a "hold" rating and cut their price target for the company from $175.00 to $125.00 in a research report on Thursday, July 31st. Needham & Company LLC cut their price target on shares of SPS Commerce from $210.00 to $160.00 and set a "buy" rating on the stock in a research report on Thursday, July 31st. Cantor Fitzgerald initiated coverage on shares of SPS Commerce in a research report on Tuesday, June 3rd. They set an "overweight" rating and a $170.00 price objective on the stock. Loop Capital cut shares of SPS Commerce from a "buy" rating to a "hold" rating and cut their price objective for the stock from $175.00 to $120.00 in a research report on Thursday, July 31st. Finally, Stifel Nicolaus cut their price objective on shares of SPS Commerce from $175.00 to $165.00 and set a "buy" rating on the stock in a research report on Thursday, July 31st.

Hedge Funds Weigh In On SPS Commerce

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Caxton Associates LLP bought a new position in shares of SPS Commerce during the 2nd quarter worth about $2,007,000. Public Sector Pension Investment Board boosted its position in shares of SPS Commerce by 7.5% during the 2nd quarter. Public Sector Pension Investment Board now owns 129,429 shares of the software maker's stock worth $17,614,000 after purchasing an additional 9,082 shares in the last quarter. Tower Research Capital LLC TRC boosted its position in shares of SPS Commerce by 715.5% during the 2nd quarter. Tower Research Capital LLC TRC now owns 6,271 shares of the software maker's stock worth $853,000 after purchasing an additional 5,502 shares in the last quarter. Corient Private Wealth LLC boosted its position in shares of SPS Commerce by 101.3% during the 2nd quarter. Corient Private Wealth LLC now owns 7,340 shares of the software maker's stock worth $999,000 after purchasing an additional 3,694 shares in the last quarter. Finally, State of Tennessee Department of Treasury raised its holdings in shares of SPS Commerce by 4.6% in the 2nd quarter. State of Tennessee Department of Treasury now owns 17,133 shares of the software maker's stock worth $2,332,000 after acquiring an additional 758 shares during the last quarter. Institutional investors own 98.96% of the company's stock.

SPS Commerce Trading Down 6.1%

Shares of SPSC opened at $105.53 on Friday. The stock has a market capitalization of $4.00 billion, a P/E ratio of 48.41 and a beta of 0.70. The firm's fifty day simple moving average is $120.48 and its two-hundred day simple moving average is $130.91. SPS Commerce has a 12 month low of $102.05 and a 12 month high of $201.06.

SPS Commerce (NASDAQ:SPSC - Get Free Report) last issued its quarterly earnings results on Wednesday, July 30th. The software maker reported $1.00 EPS for the quarter, beating analysts' consensus estimates of $0.90 by $0.10. The business had revenue of $187.40 million for the quarter, compared to analysts' expectations of $185.88 million. SPS Commerce had a net margin of 11.79% and a return on equity of 12.10%. The business's quarterly revenue was up 22.0% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.80 earnings per share. SPS Commerce has set its FY 2025 guidance at 3.990-4.040 EPS. Q3 2025 guidance at 0.960-1.000 EPS. As a group, research analysts predict that SPS Commerce 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.

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