SPS Commerce (NASDAQ:SPSC) Shares Gap Down - Should You Sell?

Key Points

• SPS Commerce shares gapped down at the open, falling from $65.72 to $62.44 and trading down about 3.6% intraday. The move came despite the company remaining near a $2.33 billion market cap.
• Analyst sentiment has turned more cautious, with Morgan Stanley cutting the stock from overweight to underweight and reducing its target to $57.00. Overall, the consensus rating is now Hold with a consensus price target of $75.27.
• Recent fundamentals were solid: SPS Commerce beat quarterly EPS expectations with $1.10 per share, while revenue rose 5.8% year over year to $192.12 million. The company also issued FY 2026 guidance of $4.730-$4.760 EPS.

SPS Commerce, Inc. (NASDAQ:SPSC - Get Free Report) shares gapped down before the market opened on Tuesday . The stock had previously closed at $65.72, but opened at $62.44. SPS Commerce shares last traded at $62.7230, with a volume of 37,573 shares traded.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on the stock. Citigroup reaffirmed a "buy" rating on shares of SPS Commerce in a research note on Tuesday. Morgan Stanley cut shares of SPS Commerce from an "overweight" rating to an "underweight" rating and reduced their price objective for the stock from $70.00 to $57.00 in a research note on Tuesday. Wall Street Zen lowered SPS Commerce from a "buy" rating to a "hold" rating in a research report on Saturday. Rothschild & Co Redburn set a $60.00 target price on SPS Commerce and gave the stock a "neutral" rating in a research report on Thursday, April 16th. Finally, 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. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, six have given a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat, SPS Commerce currently has a consensus rating of "Hold" and a consensus target price of $75.27.

SPS Commerce Trading Down 3.6%

The firm has a market cap of $2.33 billion, a price-to-earnings ratio of 26.40 and a beta of 0.56. The business's 50-day simple moving average is $56.61 and its two-hundred day simple moving average is $63.80.

SPS Commerce (NASDAQ:SPSC - Get Free Report) last issued its quarterly earnings results 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. SPS Commerce had a net margin of 11.92% and a return on equity of 12.43%. The firm had revenue of $192.12 million for the quarter, compared to the consensus estimate of $192.50 million. During the same quarter in the previous year, the company earned $1.00 EPS. The company's revenue for the quarter was up 5.8% on a year-over-year basis. 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, analysts forecast that SPS Commerce, Inc. will post 3.35 earnings per share for the current fiscal year.

Institutional Trading of SPS Commerce

A number of institutional investors have recently bought and sold shares of SPSC. Advisors Asset Management Inc. raised its position in shares of SPS Commerce by 39.9% in the 1st quarter. Advisors Asset Management Inc. now owns 393 shares of the software maker's stock worth $52,000 after acquiring an additional 112 shares in the last quarter. AQR Capital Management LLC boosted its position in shares of SPS Commerce by 2.0% during the 1st quarter. AQR Capital Management LLC now owns 14,134 shares of the software maker's stock valued at $1,876,000 after purchasing an additional 275 shares in the last quarter. NewEdge Advisors LLC grew its stake in SPS Commerce by 545.7% during the first quarter. NewEdge Advisors LLC now owns 226 shares of the software maker's stock worth $30,000 after purchasing an additional 191 shares during the period. EverSource Wealth Advisors LLC grew its stake in SPS Commerce by 137.7% during the second quarter. EverSource Wealth Advisors LLC now owns 649 shares of the software maker's stock worth $88,000 after purchasing an additional 376 shares during the period. Finally, First Trust Advisors LP increased its holdings in SPS Commerce by 83.2% in the second quarter. First Trust Advisors LP now owns 10,132 shares of the software maker's stock worth $1,379,000 after purchasing an additional 4,602 shares in the last quarter. Institutional investors own 98.96% of the company's stock.

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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