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

Key Points

• Wall Street Zen downgraded SPS Commerce (SPSC) from a "Buy" to a "Hold"; the stock's consensus rating is now "Hold" with an average analyst price target of $77.18 and several firms trimming targets (e.g., DA Davidson to $55, Citigroup lowered its target).
• SPS Commerce reported Q1 EPS of $1.10 (vs. $0.97 consensus) and revenue of $192.12M (up ~5.8% y/y), and it raised FY2026 EPS guidance to $4.73–4.76 and Q2 guidance to $1.06–1.09, supporting forward earnings expectations.
• Offsetting positives are weaker GAAP operating profit and a revenue/EPS reconciliation flagged by some analysts, slightly below-street revenue guidance, recent insider selling (24,102 shares ~ $1.43M), and the stock trading near $58.92 well under its 200‑day moving average of $76.76.

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 report released on Monday.

A number of other equities analysts have also commented on SPSC. DA Davidson reduced their target price on shares of SPS Commerce from $65.00 to $55.00 and set a "neutral" rating on the stock in a research report on Friday. Citigroup restated a "buy" rating and issued a $84.00 target price (down from $110.00) on shares of SPS Commerce in a research note on Friday, February 13th. Morgan Stanley set a $70.00 target price on shares of SPS Commerce in a research note on Friday. Rothschild & Co Redburn set a $60.00 target price on shares of SPS Commerce and gave the company a "neutral" rating in a research note on Thursday, April 16th. Finally, Robert W. Baird set a $86.00 target price on shares of SPS Commerce in a research note on Friday, February 13th. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average price target of $77.18.

SPS Commerce Stock Performance

Shares of NASDAQ SPSC opened at $58.92 on Monday. The firm's 50-day moving average price is $57.17 and its 200-day moving average price is $76.76. The stock has a market capitalization of $2.18 billion, a price-to-earnings ratio of 24.55 and a beta of 0.58. SPS Commerce has a 12-month low of $50.55 and a 12-month high of $153.16.

SPS Commerce (NASDAQ:SPSC - Get Free Report) last issued its quarterly earnings results on Thursday, April 30th. The software maker reported $1.10 EPS for the quarter, beating the consensus estimate of $0.97 by $0.13. SPS Commerce had a net margin of 11.92% and a return on equity of 12.43%. The company had revenue of $192.12 million for the quarter, compared to the consensus estimate of $192.51 million. During the same period in the prior year, the firm posted $1.00 EPS. The firm's revenue was up 5.8% compared to the same quarter last year. 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. On average, equities analysts predict that SPS Commerce will post 3.29 EPS for the current fiscal year.

Insider Buying and Selling at SPS Commerce

In related news, CFO Kimberly K. Nelson sold 6,300 shares of the firm's stock in a transaction on Friday, February 20th. The shares were sold at an average price of $58.66, for a total transaction of $369,558.00. Following the completion of the transaction, the chief financial officer owned 145,452 shares of the company's stock, valued at $8,532,214.32. This trade represents a 4.15% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Marty M. Reaume sold 1,000 shares of the firm's stock in a transaction on Tuesday, April 7th. The stock was sold at an average price of $57.90, for a total transaction of $57,900.00. Following the transaction, the director directly owned 9,158 shares of the company's stock, valued at approximately $530,248.20. This trade represents a 9.84% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 24,102 shares of company stock worth $1,425,328. 0.98% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. NewEdge Advisors LLC increased 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 in the last quarter. Salomon & Ludwin LLC purchased a new stake in shares of SPS Commerce during the third quarter worth about $28,000. Advisory Services Network LLC purchased a new stake in shares of SPS Commerce during the third quarter worth about $32,000. Advisors Asset Management Inc. increased its stake in shares of SPS Commerce by 39.9% during the first quarter. Advisors Asset Management Inc. now owns 393 shares of the software maker's stock worth $52,000 after purchasing an additional 112 shares in the last quarter. Finally, Global Retirement Partners LLC increased its stake in shares of SPS Commerce by 2,130.0% during the fourth quarter. Global Retirement Partners LLC now owns 446 shares of the software maker's stock worth $40,000 after purchasing an additional 426 shares in the last quarter. Hedge funds and other institutional investors own 98.96% of the company's stock.

Key Headlines Impacting SPS Commerce

Here are the key news stories impacting SPS Commerce this week:

• Positive Sentiment: Company Q1 results showed revenue and recurring revenue growth (~6% and ~7% yoy) and an adjusted EPS beat (reported $1.10 vs. consensus ~$0.97); management emphasized subscription strength. SPS Commerce Reports First Quarter 2026 Financial Results
• Positive Sentiment: Company raised EPS guidance: FY2026 EPS guide of $4.73–4.76 and Q2 EPS guide of $1.060–1.090 both sit above consensus, supporting forward earnings expectations. Earnings Release / Guidance Details
• Neutral Sentiment: Needham trimmed its price target to $75 (from $110) but kept a Buy rating, highlighting continued upside vs. the current price—this is supportive but reflects tempered expectations. Needham Lowers Price Target to $75
• Neutral Sentiment: Analyst coverage remains mixed: William Blair reiterated a Hold, and several write-ups (earnings transcript and presentation) provide detail for investors to parse adjusted vs. GAAP results. Q1 2026 Earnings Call Transcript
• Negative Sentiment: DA Davidson cut its price target to $55 and moved to Neutral, signaling near-term downside risk and adding selling pressure for more cautious investors. DA Davidson Lowers PT to $55
• Negative Sentiment: Some third-party reports flagged weaker GAAP operating profit and a below-expectations revenue/EPS reconciliation (Quiver noted a GAAP EPS shortfall and declines in operating profit), plus recent insider selling—items that could weigh on sentiment. Quiver: Stock Reaction & GAAP Metrics
• Negative Sentiment: Revenue guidance ranges were slightly below some revenue consensus points (Q2 and FY revenue bands came in marginally under certain street estimates), which could cap upside despite stronger EPS guides. MarketBeat: Guidance and Results Summary

SPS Commerce Company 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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