SPS Commerce (NASDAQ:SPSC) Upgraded at Wall Street Zen

Key Points

• SPS Commerce's rating was upgraded from "hold" to "buy" by Wall Street Zen, indicating increased confidence in the company's future performance.
• Analysts have varied ratings and target prices for the stock, with a consensus target of $165.80 and five analysts rating it as a Buy.
• The company recently posted better-than-expected earnings, reporting $1.00 EPS against an estimate of $0.90, and experienced a year-over-year revenue increase of 22%.

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

SPSC has been the topic of a number of other reports. Needham & Company LLC cut their price objective on SPS Commerce from $210.00 to $160.00 and set a "buy" rating on the stock in a research note on Thursday, July 31st. Morgan Stanley dropped their price target on SPS Commerce from $180.00 to $170.00 and set an "overweight" rating on the stock in a research note on Thursday, July 31st. DA Davidson lowered SPS Commerce from a "strong-buy" rating to a "hold" rating and dropped their price target for the company from $175.00 to $125.00 in a research note on Thursday, July 31st. Cantor Fitzgerald started coverage on SPS Commerce in a research note on Tuesday, June 3rd. They issued an "overweight" rating and a $170.00 price target on the stock. Finally, Loop Capital lowered SPS Commerce from a "buy" rating to a "hold" rating and dropped their price target for the company from $175.00 to $120.00 in a research note on Thursday, July 31st. Five equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $165.80.

SPS Commerce Stock Performance

Shares of NASDAQ:SPSC traded down $1.46 during midday trading on Friday, hitting $107.19. 736,452 shares of the stock were exchanged, compared to its average volume of 416,078. The business's 50-day moving average price is $117.56 and its 200 day moving average price is $130.04. The stock has a market capitalization of $4.06 billion, a price-to-earnings ratio of 49.17 and a beta of 0.70. SPS Commerce has a 12 month low of $102.05 and a 12 month high of $201.06.

SPS Commerce (NASDAQ:SPSC - Get Free Report) last posted its quarterly earnings data on Wednesday, July 30th. The software maker reported $1.00 EPS for the quarter, topping analysts' consensus estimates of $0.90 by $0.10. The company had revenue of $187.40 million for the quarter, compared to analyst estimates of $185.88 million. SPS Commerce had a return on equity of 12.10% and a net margin of 11.79%.The firm's quarterly revenue was up 22.0% on a year-over-year basis. During the same period in the previous year, the firm earned $0.80 earnings per share. SPS Commerce has set its FY 2025 guidance at 3.990-4.040 EPS. Q3 2025 guidance at 0.960-1.000 EPS. As a group, sell-side analysts expect that SPS Commerce will post 2.73 EPS for the current year.

Institutional Investors Weigh In On SPS Commerce

Several institutional investors have recently bought and sold shares of SPSC. Nordea Investment Management AB grew its holdings in SPS Commerce by 505.3% during the second quarter. Nordea Investment Management AB now owns 1,330,237 shares of the software maker's stock worth $177,587,000 after buying an additional 1,110,476 shares in the last quarter. Norges Bank bought a new stake in SPS Commerce during the second quarter worth $57,540,000. Nuveen LLC bought a new stake in SPS Commerce during the first quarter worth $37,546,000. Disciplined Growth Investors Inc. MN grew its stake in SPS Commerce by 188.0% in the 2nd quarter. Disciplined Growth Investors Inc. MN now owns 425,126 shares of the software maker's stock valued at $57,855,000 after purchasing an additional 277,499 shares during the period. Finally, Fiera Capital Corp bought a new position in SPS Commerce in the 1st quarter valued at $31,311,000. Institutional investors own 98.96% of the company's stock.

SPS Commerce Company Profile

SPS Commerce, Inc provides cloud-based supply chain management solutions in the United States and internationally. It offers solutions through the SPS Commerce, a cloud-based platform that enhances the way retailers, grocers, suppliers, distributors, and logistics firms manage and fulfill omnichannel orders, optimize sell-through performance, and automate new trading relationships.