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

Key Points

• Wall Street Zen downgraded SPS Commerce from a “buy” to a “hold” rating, adding to a mixed analyst outlook on the stock.
• The broader analyst consensus remains Hold, with MarketBeat showing a consensus price target of $76.45 and multiple firms recently adjusting ratings or targets.
• SPS Commerce recently reported better-than-expected earnings of $1.10 per share on revenue of $192.12 million, while issuing FY 2026 EPS guidance of 4.730–4.760.

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 research note issued on Saturday.

Several other research firms also recently issued reports on SPSC. Weiss Ratings upgraded shares of SPS Commerce from a "sell (d)" rating to a "sell (d+)" rating in a research note on Wednesday, July 8th. Citigroup cut their target price on shares of SPS Commerce from $84.00 to $76.00 and set a "buy" rating on the stock in a research note on Monday, May 4th. Cantor Fitzgerald set a $60.00 target price on shares of SPS Commerce and gave the company a "neutral" rating in a report on Friday, May 1st. Stifel Nicolaus set a $60.00 price target on shares of SPS Commerce in a research report on Friday, May 1st. Finally, Zacks Research downgraded SPS Commerce from a "hold" rating to a "strong sell" rating in a report on Tuesday. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, seven have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $76.45.

SPS Commerce Price Performance

NASDAQ SPSC opened at $65.59 on Friday. The firm has a market capitalization of $2.41 billion, a P/E ratio of 27.33 and a beta of 0.56. SPS Commerce has a 1-year low of $49.04 and a 1-year high of $143.55. The business's 50-day simple moving average is $56.35 and its 200-day simple moving average is $64.17.

SPS Commerce (NASDAQ:SPSC - Get Free Report) last issued its earnings results on Thursday, April 30th. The software maker reported $1.10 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.97 by $0.13. The business had revenue of $192.12 million during the quarter, compared to analysts' expectations of $192.50 million. SPS Commerce had a return on equity of 12.43% and a net margin of 11.92%.The company's revenue for the quarter was up 5.8% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.00 EPS. 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 research analysts expect that SPS Commerce will post 3.35 EPS for the current fiscal year.

Institutional Trading of SPS Commerce

Large investors have recently bought and sold shares of the company. Tudor Investment Corp ET AL increased its position in shares of SPS Commerce by 161.5% during the third quarter. Tudor Investment Corp ET AL now owns 70,389 shares of the software maker's stock worth $7,330,000 after acquiring an additional 43,476 shares during the last quarter. Lightrock Netherlands B.V. acquired a new position in shares of SPS Commerce in the fourth quarter worth about $7,389,000. Bessemer Group Inc. boosted its holdings in SPS Commerce by 1,149.1% in the fourth quarter. Bessemer Group Inc. now owns 98,208 shares of the software maker's stock valued at $8,753,000 after purchasing an additional 90,346 shares during the last quarter. VELA Investment Management LLC purchased a new position in SPS Commerce in the fourth quarter valued at about $1,798,000. Finally, SG Americas Securities LLC boosted its holdings in SPS Commerce by 205.3% in the fourth quarter. SG Americas Securities LLC now owns 39,753 shares of the software maker's stock valued at $3,543,000 after purchasing an additional 26,730 shares during the last quarter. Institutional investors and hedge funds own 98.96% of the company's stock.

About SPS Commerce

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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