SPS Commerce (NASDAQ:SPSC) Price Target Lowered to $55.00 at DA Davidson

Key Points

• DA Davidson cut its price target on SPS Commerce to $55 and kept a "neutral" rating — implying about a 6.7% downside — while the analyst consensus remains a "Hold" with an average target around $77.18.
• SPS beat adjusted Q1 EPS and raised FY‑2026 guidance, showing recurring‑revenue growth and stronger cash flow, but mixed revenue guidance, weaker GAAP/pro‑forma operating metrics and recent insider selling have pressured sentiment.

SPS Commerce (NASDAQ:SPSC - Get Free Report) had its price objective lowered by DA Davidson from $65.00 to $55.00 in a note issued to investors on Friday,Benzinga reports. The firm presently has a "neutral" rating on the software maker's stock. DA Davidson's price target points to a potential downside of 6.65% from the stock's previous close.

Other research analysts have also issued reports about the company. Cantor Fitzgerald set a $60.00 target price on SPS Commerce and gave the stock a "neutral" rating in a research report on Friday. Morgan Stanley set a $70.00 target price on SPS Commerce in a report on Friday. Citigroup reaffirmed a "buy" rating and issued a $84.00 price target (down from $110.00) on shares of SPS Commerce in a report on Friday, February 13th. Weiss Ratings upgraded shares of SPS Commerce from a "sell (d)" rating to a "sell (d+)" rating in a research report on Wednesday. Finally, Needham & Company LLC lowered their price objective on shares of SPS Commerce from $110.00 to $75.00 and set a "buy" rating on the stock in a research report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, SPS Commerce has a consensus rating of "Hold" and an average target price of $77.18.

SPS Commerce Price Performance

SPS Commerce stock traded up $2.80 during trading on Friday, reaching $58.92. 925,978 shares of the company were exchanged, compared to its average volume of 728,124. SPS Commerce has a 52-week low of $50.55 and a 52-week high of $153.16. The company has a market capitalization of $2.18 billion, a P/E ratio of 24.05 and a beta of 0.62. The stock's 50 day simple moving average is $57.17 and its two-hundred day simple moving average is $77.21.

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

Insider Activity at SPS Commerce

In other news, EVP Jamie Thingelstad sold 2,418 shares of the stock in a transaction that occurred on Tuesday, February 24th. The shares were sold at an average price of $54.94, for a total transaction of $132,844.92. Following the sale, the executive vice president directly owned 56,344 shares of the company's stock, valued at $3,095,539.36. This represents a 4.11% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Marty M. Reaume sold 1,000 shares of the stock in a transaction that occurred on Tuesday, April 7th. The shares were 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 in the company, valued at $530,248.20. This trade represents a 9.84% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 24,102 shares of company stock valued at $1,425,328 over the last three months. 0.98% of the stock is owned by company insiders.

Hedge Funds Weigh In On SPS Commerce

Several large investors have recently bought and sold shares of SPSC. Salomon & Ludwin LLC acquired a new position in SPS Commerce in the third quarter valued at approximately $28,000. 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. Advisory Services Network LLC acquired a new position in SPS Commerce in the third quarter valued at approximately $32,000. Global Retirement Partners LLC lifted its holdings in SPS Commerce by 2,130.0% in the fourth quarter. Global Retirement Partners LLC now owns 446 shares of the software maker's stock valued at $40,000 after buying an additional 426 shares during the period. Finally, Summit Securities Group LLC acquired a new position in SPS Commerce in the fourth quarter valued at approximately $45,000. 98.96% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting SPS Commerce

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

• Positive Sentiment: Management raised FY2026 EPS guidance materially above prior consensus (FY EPS guidance of ~4.73–4.76 vs. consensus ~4.24), which supports upside to valuation expectations. SPS Commerce Reports First Quarter 2026 Financial Results
• Positive Sentiment: On adjusted metrics SPS topped consensus on Q1 EPS (reported $1.10 vs. ~ $0.97 estimate), and recurring revenue grew year‑over‑year, both supporting subscription/repeat‑revenue durability. SPS Commerce (SPSC) Tops Q1 Earnings Estimates
• Positive Sentiment: Operating cash flow and liquidity improved (notable increase in cash from operations and cash balance), which reduces near‑term financial risk and funds investment. SPS Commerce (SPSC) Stock Falls on Q1 2026 Earnings
• Neutral Sentiment: Earnings call materials and transcript provide more color on Amazon/third‑party activity and product mix — useful for assessing sustainability of recurring revenue but not immediately decisive. SPSC Q1 2026 Earnings Call Transcript
• Neutral Sentiment: Q2 EPS guidance was issued slightly above consensus (Q2 EPS 1.06–1.09 vs. ~1.04) while Q2 revenue guidance ($194.5–$196.5M) and FY revenue range sit roughly at/just below street expectations — mixed for near‑term growth outlook. Q1 Results & Guidance (Company Presentation)
• Negative Sentiment: Some headline metrics disappointed or showed pressure: certain GAAP/pro forma measures and operating income declined year‑over‑year, creating confusion between adjusted vs. reported EPS and weighing on sentiment. SPSC Stock Falls on Q1 2026 Earnings (Quiver)
• Negative Sentiment: Needham cut its price target from $110 to $75 (though it kept a buy rating), and at least one major analyst (William Blair) has a Hold — these moves can cap near‑term upside and weigh on sentiment. Needham Price Target Cut / Coverage Notes
• Negative Sentiment: Insider selling activity was flagged in recent summaries, which some investors view as a negative signal for management stock conviction. Insider Trading & Institutional Moves (Quiver)

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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