SPS Commerce (NASDAQ:SPSC) Rating Lowered to "Strong Sell" at Zacks Research

Key Points

• Zacks Research downgraded SPS Commerce from “hold” to “strong sell”, adding to a mixed analyst picture that still leaves the stock with an overall Hold consensus rating.
• Recent analyst price targets have ranged widely, including $55 to $75, while MarketBeat says the current consensus target price is $76.45.
• SPS Commerce reported better-than-expected earnings for the latest quarter, with EPS of $1.10 versus estimates of $0.97, and revenue that grew 5.8% year over year.

SPS Commerce (NASDAQ:SPSC - Get Free Report) was downgraded by analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued on Tuesday,Zacks.com reports.

Other research analysts have also recently issued reports about the company. Cantor Fitzgerald set a $60.00 price target on SPS Commerce and gave the company a "neutral" rating in a research note on Friday, May 1st. Wall Street Zen upgraded SPS Commerce from a "hold" rating to a "buy" rating in a research report on Saturday, May 16th. DA Davidson set a $55.00 target price on SPS Commerce and gave the stock a "neutral" rating in a report on Wednesday, July 1st. Morgan Stanley set a $70.00 target price on SPS Commerce in a research report on Friday, May 1st. Finally, Needham & Company LLC cut their price target on SPS Commerce from $110.00 to $75.00 and set a "buy" rating on the stock in a research note on Friday, May 1st. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, seven have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $76.45.

SPS Commerce Trading Up 1.3%

SPSC opened at $64.11 on Tuesday. The company has a market cap of $2.35 billion, a P/E ratio of 26.71 and a beta of 0.56. The company's 50 day moving average is $56.00 and its 200-day moving average is $64.34. SPS Commerce has a 1-year low of $49.04 and a 1-year high of $143.55.

SPS Commerce (NASDAQ:SPSC - Get Free Report) last released its quarterly earnings data on Thursday, April 30th. The software maker reported $1.10 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.97 by $0.13. The business had revenue of $192.12 million during the quarter, compared to analysts' expectations of $192.50 million. SPS Commerce had a net margin of 11.92% and a return on equity of 12.43%. The firm's quarterly revenue was up 5.8% compared to the same quarter last year. During the same period in the prior year, the company earned $1.00 EPS. 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, equities analysts forecast that SPS Commerce will post 3.35 EPS for the current year.

Institutional Trading of SPS Commerce

Institutional investors and hedge funds have recently bought and sold shares of the stock. NewEdge Advisors LLC lifted its holdings in SPS Commerce by 545.7% during the 1st quarter. NewEdge Advisors LLC now owns 226 shares of the software maker's stock worth $30,000 after buying an additional 191 shares during the period. Advisory Services Network LLC bought a new stake in shares of SPS Commerce in the 3rd quarter valued at about $32,000. Global Retirement Partners LLC increased its stake in shares of 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. Summit Securities Group LLC acquired a new stake in shares of SPS Commerce in the fourth quarter valued at about $45,000. Finally, Park Place Capital Corp raised its position in shares of SPS Commerce by 29.7% during the fourth 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. 98.96% of the stock is currently owned by institutional investors and hedge funds.

SPS Commerce Company Profile

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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