SPS Commerce (NASDAQ:SPSC) Price Target Cut to $75.00 by Analysts at Needham & Company LLC

Key Points

• Needham cut its price target on SPS Commerce from $110 to $75 while maintaining a "buy" rating, implying roughly a 33.6% upside from the current share price.
• Multiple analysts have trimmed targets and ratings recently, leaving a consensus analyst view of "Hold" with an average price target near $81.73.
• Operationally, SPS posted an EPS beat for Q1 and provided FY/Q2 guidance that included a raised FY EPS outlook but mixed revenue guidance and signs of margin pressure.

SPS Commerce (NASDAQ:SPSC - Get Free Report) had its price target dropped by investment analysts at Needham & Company LLC from $110.00 to $75.00 in a report issued on Friday,Benzinga reports. The brokerage presently has a "buy" rating on the software maker's stock. Needham & Company LLC's price objective would suggest a potential upside of 33.64% from the stock's current price.

Several other research analysts also recently commented on SPSC. DA Davidson dropped their target price on shares of SPS Commerce from $80.00 to $65.00 and set a "neutral" rating on the stock in a report on Tuesday, February 17th. Cantor Fitzgerald set a $70.00 price target on shares of SPS Commerce in a report on Friday, February 13th. Citigroup restated a "buy" rating and set a $84.00 price target (down from $110.00) on shares of SPS Commerce in a report on Friday, February 13th. Craig Hallum cut shares of SPS Commerce from a "buy" rating to a "hold" rating and set a $70.00 price target for the company. in a report on Friday, February 13th. Finally, Rothschild & Co Redburn set a $60.00 price target on shares of SPS Commerce and gave the company a "neutral" rating in a report on Thursday, April 16th. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, SPS Commerce has an average rating of "Hold" and a consensus price target of $81.73.

SPS Commerce Stock Performance

SPSC opened at $56.12 on Friday. The firm has a market cap of $2.07 billion, a P/E ratio of 22.91 and a beta of 0.62. The business has a 50 day moving average price of $57.17 and a 200 day moving average price of $77.21. SPS Commerce has a twelve month low of $50.55 and a twelve month high of $153.16.

SPS Commerce (NASDAQ:SPSC - Get Free Report) last issued its quarterly earnings data on Thursday, February 12th. The software maker reported $1.14 earnings per share for the quarter, topping analysts' consensus estimates of $1.00 by $0.14. SPS Commerce had a net margin of 12.42% and a return on equity of 12.73%. The business had revenue of $192.65 million during the quarter, compared to analysts' expectations of $193.60 million. During the same period in the previous year, the company earned $0.89 earnings per share. SPS Commerce's revenue for the quarter was up 12.7% on a year-over-year basis. 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. As a group, analysts anticipate that SPS Commerce will post 3.25 earnings per share for the current fiscal year.

Insider Activity

In related news, Director Marty M. Reaume sold 1,000 shares of SPS Commerce stock in a transaction dated Tuesday, April 7th. The stock was sold at an average price of $57.90, for a total transaction of $57,900.00. Following the sale, the director directly owned 9,158 shares of the company's stock, valued at $530,248.20. This trade represents a 9.84% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jamie Thingelstad sold 2,418 shares of the business'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 $3,095,539.36. This 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 over the last three months. 0.98% of the stock is currently owned by insiders.

Institutional Trading of SPS Commerce

Institutional investors and hedge funds have recently modified their holdings of the company. Van Berkom & Associates Inc. bought a new stake in shares of SPS Commerce during the third quarter valued at approximately $51,878,000. Champlain Investment Partners LLC bought a new stake in shares of SPS Commerce during the third quarter valued at approximately $36,735,000. Numerai GP LLC increased its position in shares of SPS Commerce by 529.4% during the third quarter. Numerai GP LLC now owns 59,244 shares of the software maker's stock valued at $6,170,000 after purchasing an additional 49,831 shares during the period. 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 valued at $7,330,000 after purchasing an additional 43,476 shares during the period. Finally, Lightrock Netherlands B.V. bought a new position in SPS Commerce during the fourth quarter worth about $7,389,000. 98.96% of the stock is currently owned by institutional investors.

Trending Headlines about SPS Commerce

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

• Positive Sentiment: Q1 EPS beat and recurring revenue growth — SPS reported roughly $1.10 in adjusted EPS vs. ~ $0.97 consensus and recurring revenue grew ~7% year‑over‑year, showing underlying subscription strength. Q1 Results
• Positive Sentiment: Upside to FY EPS guide — management raised FY2026 EPS guidance to $4.73–4.76, above consensus, which supports a longer‑term earnings recovery thesis. Guidance/Press Release
• Neutral Sentiment: Mixed Q2 guide — management gave Q2 EPS guidance slightly above Street ($1.06–1.09 vs. $1.04 consensus) but issued revenue guidance just below consensus ($194.5M–$196.5M vs. ~$198.4M), making the quarter a wash for near‑term top‑line expectations. Guidance Details
• Neutral Sentiment: Strong cash flow and balance‑sheet metrics — operating cash increased materially and cash balances rose, which supports execution and buyback/capital flexibility even as margins face pressure. Cash & Balance Sheet
• Negative Sentiment: Profitability pressures and some operating line drops — operating profit and net income declined year‑over‑year in Q1 and cost/margin trends were weaker, which hurt near‑term EPS comparability despite the adjusted beat. Earnings Detail
• Negative Sentiment: Analyst/investor caution and third‑party/marketplace drag — William Blair reiterated a Hold, noting core fulfillment strength is being offset by weakness in third‑party revenue and trimmed near‑term guidance, and some analysts/holders remain cautious; insider selling and institutional position changes were also noted. Analyst Note

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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