SPS Commerce (NASDAQ:SPSC) Cut to Hold at Wall Street Zen

Key Points

• SPS Commerce has been downgraded from a "buy" to a "hold" rating by Wall Street Zen, reflecting a more cautious outlook from analysts.
• The company's share price target from several investment firms has seen significant reductions, with figures dropping from as high as $210 to as low as $120.
• SPS Commerce reported a quarterly earnings per share of $1.00, surpassing expectations and indicating a 22% revenue increase year-over-year.

SPS Commerce (NASDAQ:SPSC - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued on Saturday.

SPSC has been the subject of several other reports. Stifel Nicolaus cut their price target on shares of SPS Commerce from $175.00 to $165.00 and set a "buy" rating for the company in a report on Thursday, July 31st. Loop Capital downgraded shares of SPS Commerce from a "buy" rating to a "hold" rating and dropped their target price for the stock from $175.00 to $120.00 in a research note on Thursday, July 31st. Robert W. Baird boosted their target price on shares of SPS Commerce from $154.00 to $159.00 and gave the stock a "neutral" rating in a research note on Friday, April 25th. DA Davidson downgraded shares of SPS Commerce from a "strong-buy" rating to a "hold" rating and dropped their target price for the stock from $175.00 to $125.00 in a research note on Thursday, July 31st. Finally, Needham & Company LLC dropped their target price on shares of SPS Commerce from $210.00 to $160.00 and set a "buy" rating for the company in a research note on Thursday, July 31st. Six investment analysts have rated the stock with a hold rating and five have assigned a buy rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $165.80.

SPS Commerce Stock Down 1.3%

Shares of SPSC stock opened at $112.04 on Friday. SPS Commerce has a 12-month low of $102.05 and a 12-month high of $203.86. The company has a market capitalization of $4.25 billion, a P/E ratio of 51.39 and a beta of 0.71. The firm has a 50-day moving average price of $130.79 and a 200 day moving average price of $137.94.

SPS Commerce (NASDAQ:SPSC - Get Free Report) last announced its quarterly earnings results on Wednesday, July 30th. The software maker reported $1.00 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.90 by $0.10. SPS Commerce had a net margin of 11.79% and a return on equity of 12.10%. The firm had revenue of $187.40 million during the quarter, compared to the consensus estimate of $185.88 million. During the same period last year, the firm posted $0.80 EPS. The firm's quarterly revenue was up 22.0% on a year-over-year basis. As a group, research analysts expect that SPS Commerce will post 2.73 earnings per share for the current year.

Institutional Investors Weigh In On SPS Commerce

Institutional investors and hedge funds have recently modified their holdings of the business. UMB Bank n.a. raised its stake in shares of SPS Commerce by 60.6% during the second quarter. UMB Bank n.a. now owns 212 shares of the software maker's stock worth $29,000 after buying an additional 80 shares during the last quarter. MassMutual Private Wealth & Trust FSB raised its stake in shares of SPS Commerce by 126.3% during the first quarter. MassMutual Private Wealth & Trust FSB now owns 224 shares of the software maker's stock worth $30,000 after buying an additional 125 shares during the last quarter. NewEdge Advisors LLC grew its holdings in SPS Commerce by 545.7% during the first quarter. NewEdge Advisors LLC now owns 226 shares of the software maker's stock valued at $30,000 after purchasing an additional 191 shares during the period. Allworth Financial LP grew its holdings in SPS Commerce by 296.6% during the first quarter. Allworth Financial LP now owns 234 shares of the software maker's stock valued at $33,000 after purchasing an additional 175 shares during the period. Finally, Caitong International Asset Management Co. Ltd grew its holdings in SPS Commerce by 105.4% during the first quarter. Caitong International Asset Management Co. Ltd now owns 302 shares of the software maker's stock valued at $40,000 after purchasing an additional 155 shares during the period. 98.96% of the stock is owned by institutional investors.

SPS Commerce Company Profile

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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