SPS Commerce (NASDAQ:SPSC) Raised to "Buy" at Wall Street Zen

Key Points

• Wall Street Zen upgraded SPS Commerce (NASDAQ:SPSC) from a "hold" to a "buy," though the MarketBeat consensus remains a "Hold" with a $84.91 price target based on mixed analyst ratings.
• Q4 results showed an EPS beat of $1.14 vs. $1.00 expected while revenue missed slightly at $192.65M, and management provided FY2026 EPS guidance of $4.420–$4.500 (Q1 guide: $0.950–$0.990).
• Insider selling is notable—CEO Chadwick Collins sold 13,384 shares (and insiders sold 24,102 shares last quarter)—even as institutional ownership is extremely high at 98.96%.

SPS Commerce (NASDAQ:SPSC - Get Free Report) was upgraded by Wall Street Zen from a "hold" rating to a "buy" rating in a research report issued to clients and investors on Sunday.

A number of other equities research analysts also recently issued reports on the company. Stifel Nicolaus set a $65.00 price target on SPS Commerce and gave the company a "hold" rating in a research report on Friday, February 13th. Citigroup restated a "buy" rating and issued a $84.00 price objective (down from $110.00) on shares of SPS Commerce in a report on Friday, February 13th. Robert W. Baird set a $86.00 price objective on SPS Commerce in a research note on Friday, February 13th. Rothschild & Co Redburn set a $60.00 target price on SPS Commerce and gave the stock a "neutral" rating in a report on Thursday, April 16th. Finally, Cantor Fitzgerald set a $70.00 target price on shares of SPS Commerce in a research report on Friday, February 13th. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $84.91.

SPS Commerce Stock Up 2.5%

NASDAQ:SPSC opened at $54.65 on Friday. The company has a market cap of $2.02 billion, a P/E ratio of 22.31 and a beta of 0.62. The firm's 50 day moving average is $57.51 and its two-hundred day moving average is $78.46. SPS Commerce has a fifty-two week low of $50.55 and a fifty-two week high of $153.16.

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

Insiders Place Their Bets

In related news, CEO Chadwick Collins sold 13,384 shares of SPS Commerce stock in a transaction on Friday, February 20th. The shares were sold at an average price of $58.66, for a total value of $785,105.44. Following the completion of the sale, the chief executive officer owned 72,241 shares in the company, valued at approximately $4,237,657.06. The trade was a 15.63% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Jamie Thingelstad sold 2,418 shares of the company's stock in a transaction 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 completion of the sale, the executive vice president directly 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. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 24,102 shares of company stock valued at $1,425,328. Company insiders own 0.98% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in SPSC. Vanguard Group Inc. grew its stake in SPS Commerce by 5.3% in the third quarter. Vanguard Group Inc. now owns 4,944,449 shares of the software maker's stock worth $514,915,000 after purchasing an additional 249,351 shares in the last quarter. State Street Corp increased its holdings in SPS Commerce by 0.6% in the fourth quarter. State Street Corp now owns 1,468,312 shares of the software maker's stock valued at $130,871,000 after buying an additional 8,163 shares during the last quarter. UBS Group AG raised its stake in SPS Commerce by 182.3% during the fourth quarter. UBS Group AG now owns 1,295,267 shares of the software maker's stock valued at $115,447,000 after buying an additional 836,407 shares in the last quarter. Conestoga Capital Advisors LLC lifted its holdings in SPS Commerce by 2.5% during the 3rd quarter. Conestoga Capital Advisors LLC now owns 1,281,511 shares of the software maker's stock worth $133,457,000 after buying an additional 30,769 shares during the last quarter. Finally, Disciplined Growth Investors Inc. MN lifted its holdings in SPS Commerce by 86.4% during the 3rd quarter. Disciplined Growth Investors Inc. MN now owns 792,472 shares of the software maker's stock worth $82,528,000 after buying an additional 367,346 shares during the last quarter. 98.96% of the stock is owned by institutional investors and hedge funds.

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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