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

Key Points

• Wall Street Zen upgraded SPS Commerce from hold to buy, adding to a mixed analyst picture that still leaves the stock with a consensus Hold rating and an average target price of $76.45.
• The company reported better-than-expected quarterly earnings of $1.10 per share, beating estimates, while revenue grew 5.8% year over year to $192.12 million.
• Shares were up 2.4% to $51.17, near the stock’s 52-week low, while insiders have recently sold shares and institutional investors continue to own the vast majority of the company.

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

Several other analysts have also recently issued reports on SPSC. Robert W. Baird set a $86.00 target price on SPS Commerce in a research report on Friday, February 13th. Stifel Nicolaus set a $60.00 target price on SPS Commerce in a research report on Friday, May 1st. Morgan Stanley set a $70.00 target price on SPS Commerce in a research report on Friday, May 1st. Rothschild & Co Redburn set a $60.00 target price on SPS Commerce and gave the company a "neutral" rating in a research report on Thursday, April 16th. Finally, Cantor Fitzgerald set a $60.00 target price on SPS Commerce and gave the company a "neutral" rating in a research report on Friday, May 1st. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $76.45.

SPS Commerce Stock Up 2.4%

Shares of NASDAQ:SPSC opened at $51.17 on Friday. SPS Commerce has a 52-week low of $49.04 and a 52-week high of $151.40. The stock has a market cap of $1.88 billion, a P/E ratio of 21.32 and a beta of 0.58. The business's 50 day moving average is $56.54 and its 200 day moving average is $73.42.

SPS Commerce (NASDAQ:SPSC - Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The software maker reported $1.10 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.97 by $0.13. The company had revenue of $192.12 million for the quarter, compared to analysts' expectations of $192.51 million. SPS Commerce had a return on equity of 12.43% and a net margin of 11.92%.SPS Commerce's revenue was up 5.8% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.00 earnings per share. 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, sell-side analysts anticipate that SPS Commerce will post 3.41 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CFO Kimberly K. Nelson sold 6,300 shares of the stock in a transaction on Friday, February 20th. The stock was sold at an average price of $58.66, for a total transaction of $369,558.00. Following the completion of the sale, the chief financial officer owned 145,452 shares in the company, valued at approximately $8,532,214.32. This represents a 4.15% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Marty M. Reaume sold 1,000 shares of the stock in a transaction on Tuesday, April 7th. The shares were sold at an average price of $57.90, for a total value of $57,900.00. Following the sale, the director owned 9,158 shares of the company's stock, valued at approximately $530,248.20. This represents a 9.84% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 23,102 shares of company stock worth $1,345,408. 0.58% of the stock is currently owned by company insiders.

Institutional Trading of SPS Commerce

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Advisors Asset Management Inc. lifted its holdings in shares of SPS Commerce by 39.9% during the 1st quarter. Advisors Asset Management Inc. now owns 393 shares of the software maker's stock valued at $52,000 after purchasing an additional 112 shares during the last quarter. State of Alaska Department of Revenue raised its stake in SPS Commerce by 0.6% in the 4th quarter. State of Alaska Department of Revenue now owns 20,986 shares of the software maker's stock worth $1,870,000 after acquiring an additional 126 shares during the last quarter. Park Place Capital Corp raised its stake in SPS Commerce by 29.7% in the 4th quarter. Park Place Capital Corp now owns 564 shares of the software maker's stock worth $50,000 after acquiring an additional 129 shares during the last quarter. Arizona State Retirement System raised its stake in SPS Commerce by 1.3% in the 3rd quarter. Arizona State Retirement System now owns 11,226 shares of the software maker's stock worth $1,169,000 after acquiring an additional 140 shares during the last quarter. Finally, Inspire Advisors LLC raised its stake in SPS Commerce by 3.2% in the 3rd quarter. Inspire Advisors LLC now owns 4,795 shares of the software maker's stock worth $499,000 after acquiring an additional 149 shares during the last quarter. Hedge funds and other institutional investors 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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