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

Key Points

• SPS Commerce was downgraded by Wall Street Zen from "Buy" to "Hold," and the consensus analyst rating is now "Hold" with an average price target of $84.91 after several firms lowered targets.
• The company beat EPS expectations ($1.14 vs. $1.00) but slightly missed revenue estimates, provided FY2026 guidance of $4.42–$4.50 and Q1 guidance of $0.95–$0.99, while shares trade near $57.62—well below the average target.
• Insiders have sold 24,102 shares (~$1.43M) in the last three months, including sales by CEO Chadwick Collins, leaving insider ownership under 1%.

SPS Commerce (NASDAQ:SPSC - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "buy" rating to a "hold" rating in a report released on Saturday.

Several other equities research analysts have also weighed in on SPSC. Craig Hallum lowered SPS Commerce from a "buy" rating to a "hold" rating and set a $70.00 price objective for the company. in a research note on Friday, February 13th. DA Davidson reduced their price objective on SPS Commerce from $80.00 to $65.00 and set a "neutral" rating for the company in a research note on Tuesday, February 17th. Robert W. Baird set a $86.00 price objective on SPS Commerce in a research note on Friday, February 13th. Morgan Stanley set a $95.00 price objective on SPS Commerce in a research note on Friday, February 13th. Finally, Stifel Nicolaus set a $65.00 price objective on SPS Commerce and gave the stock a "hold" rating in a research note on Friday, February 13th. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $84.91.

SPS Commerce Price Performance

Shares of SPSC stock opened at $57.62 on Friday. SPS Commerce has a 12-month low of $50.55 and a 12-month high of $153.16. The firm has a market capitalization of $2.13 billion, a price-to-earnings ratio of 23.52 and a beta of 0.62. The business has a 50 day simple moving average of $58.79 and a 200 day simple moving average of $80.33.

SPS Commerce (NASDAQ:SPSC - Get Free Report) last issued its quarterly earnings results on Thursday, February 12th. The software maker reported $1.14 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.00 by $0.14. The firm had revenue of $192.65 million during the quarter, compared to analyst estimates of $193.60 million. SPS Commerce had a return on equity of 12.73% and a net margin of 12.42%.The firm's quarterly revenue was up 12.7% on a year-over-year basis. During the same period last year, the company posted $0.89 EPS. SPS Commerce has set its FY 2026 guidance at 4.420-4.500 EPS and its Q1 2026 guidance at 0.950-0.990 EPS. On average, equities analysts anticipate that SPS Commerce will post 2.73 EPS for the current fiscal year.

Insider Buying and Selling

In other SPS Commerce news, CEO Chadwick Collins sold 13,384 shares of the firm's stock in a transaction dated Friday, February 20th. The stock was sold at an average price of $58.66, for a total transaction of $785,105.44. Following the transaction, the chief executive officer directly owned 72,241 shares in the company, valued at $4,237,657.06. This trade represents a 15.63% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Jamie Thingelstad sold 2,418 shares of the firm's stock in a transaction dated Tuesday, February 24th. The shares were sold at an average price of $54.94, for a total value of $132,844.92. Following the transaction, the executive vice president owned 56,344 shares in the company, valued at approximately $3,095,539.36. This trade represents a 4.11% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 24,102 shares of company stock valued at $1,425,328 in the last three months. 0.98% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On SPS Commerce

A number of institutional investors have recently added to or reduced their stakes in SPSC. Salomon & Ludwin LLC acquired a new stake in SPS Commerce during the third quarter worth about $28,000. NewEdge Advisors LLC grew its position in SPS Commerce by 545.7% during the first quarter. NewEdge Advisors LLC now owns 226 shares of the software maker's stock worth $30,000 after buying an additional 191 shares in the last quarter. Advisory Services Network LLC acquired a new stake in SPS Commerce during the third quarter worth about $32,000. Global Retirement Partners LLC boosted its holdings in SPS Commerce by 2,130.0% during the fourth quarter. Global Retirement Partners LLC now owns 446 shares of the software maker's stock valued at $40,000 after purchasing an additional 426 shares in the last quarter. Finally, Summit Securities Group LLC acquired a new stake in SPS Commerce during the fourth quarter valued at approximately $45,000. 98.96% of the stock is owned by institutional investors and hedge funds.

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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