SPS Commerce (NASDAQ:SPSC) Downgraded by Wall Street Zen to Hold

Key Points

• SPS Commerce was downgraded from a "buy" rating to a "hold" rating by Wall Street Zen, reflecting a cautious outlook from equity analysts.
• The company reported strong quarterly earnings, with $1.00 EPS, surpassing estimates and achieving a year-over-year revenue increase of 22%.
• Analysts have mixed ratings on SPS Commerce, with five assigning a "buy" rating and five a "hold" rating, while the consensus target price is set at $162.30.

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

Several other equities analysts also recently weighed in on the company. Stifel Nicolaus dropped their price objective on SPS Commerce from $175.00 to $165.00 and set a "buy" rating for the company in a research note on Thursday, July 31st. Needham & Company LLC reaffirmed a "buy" rating and set a $160.00 target price on shares of SPS Commerce in a report on Wednesday. DA Davidson reissued a "neutral" rating and issued a $125.00 price objective on shares of SPS Commerce in a report on Thursday. Morgan Stanley reduced their price objective on SPS Commerce from $180.00 to $170.00 and set an "overweight" rating for the company in a research note on Thursday, July 31st. Finally, Loop Capital lowered 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 report on Thursday, July 31st. Five analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, SPS Commerce has a consensus rating of "Moderate Buy" and a consensus target price of $162.30.

SPS Commerce Stock Performance

NASDAQ SPSC opened at $106.32 on Friday. The firm has a market cap of $4.03 billion, a price-to-earnings ratio of 48.77 and a beta of 0.70. The firm has a 50 day simple moving average of $114.27 and a 200-day simple moving average of $129.32. SPS Commerce has a one year low of $102.05 and a one year high of $201.06.

SPS Commerce (NASDAQ:SPSC - Get Free Report) last announced its quarterly earnings data 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 return on equity of 12.10% and a net margin of 11.79%.The business had revenue of $187.40 million during the quarter, compared to analysts' expectations of $185.88 million. During the same quarter last year, the business posted $0.80 EPS. The business's quarterly revenue was up 22.0% compared to the same quarter last year. SPS Commerce has set its FY 2025 guidance at 3.990-4.040 EPS. Q3 2025 guidance at 0.960-1.000 EPS. Equities analysts predict that SPS Commerce will post 2.73 EPS for the current fiscal year.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. UMB Bank n.a. raised its stake in SPS Commerce by 60.6% in the second quarter. UMB Bank n.a. now owns 212 shares of the software maker's stock valued at $29,000 after buying an additional 80 shares during the period. MassMutual Private Wealth & Trust FSB increased its position in SPS Commerce by 126.3% during the 1st quarter. MassMutual Private Wealth & Trust FSB now owns 224 shares of the software maker's stock valued at $30,000 after purchasing an additional 125 shares during the period. NewEdge Advisors LLC lifted its holdings in SPS Commerce by 545.7% in the first quarter. NewEdge Advisors LLC now owns 226 shares of the software maker's stock valued at $30,000 after buying an additional 191 shares during the period. Allworth Financial LP boosted its position in shares of SPS Commerce by 296.6% during the 1st quarter. Allworth Financial LP now owns 234 shares of the software maker's stock valued at $33,000 after purchasing an additional 175 shares in the last quarter. Finally, Caitong International Asset Management Co. Ltd boosted its holdings in shares of SPS Commerce by 105.4% during the 1st quarter. Caitong International Asset Management Co. Ltd now owns 302 shares of the software maker's stock worth $40,000 after buying an additional 155 shares in the last quarter. 98.96% of the stock is owned by institutional investors and hedge funds.

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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