SPS Commerce (NASDAQ:SPSC) Upgraded by Wall Street Zen to Buy Rating

Key Points

• SPS Commerce has been upgraded to a "buy" rating by Wall Street Zen, shifting from a previous "hold" rating.
• Analysts' price targets for SPS Commerce have varied, with Morgan Stanley lowering its target from $180 to $170, while Loop Capital reduced its target significantly from $175 to $120.
• The company reported improved earnings with a $1.00 EPS for the recent quarter, exceeding the consensus estimate and showing a 22% year-over-year revenue increase.

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 research note issued on Monday.

Several other research analysts have also commented on the stock. Morgan Stanley reduced their price objective on shares of SPS Commerce from $180.00 to $170.00 and set an "overweight" rating for the company in a research note on Thursday, July 31st. Loop Capital lowered shares of SPS Commerce from a "buy" rating to a "hold" rating and reduced their price objective for the stock from $175.00 to $120.00 in a research note on Thursday, July 31st. DA Davidson reiterated a "neutral" rating and set a $125.00 price objective on shares of SPS Commerce in a research note on Thursday, September 25th. Stifel Nicolaus reduced their price objective on shares of SPS Commerce from $175.00 to $165.00 and set a "buy" rating for the company in a research note on Thursday, July 31st. Finally, Cantor Fitzgerald reduced their price objective on shares of SPS Commerce from $170.00 to $135.00 and set an "overweight" rating for the company in a research note on Wednesday, September 24th. Five analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $156.70.

SPS Commerce Stock Performance

NASDAQ:SPSC opened at $105.93 on Monday. SPS Commerce has a one year low of $102.05 and a one year high of $201.06. The firm has a market cap of $4.02 billion, a P/E ratio of 48.59 and a beta of 0.69. The firm has a 50-day simple moving average of $110.93 and a 200-day simple moving average of $128.52.

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 the consensus estimate of $0.90 by $0.10. The firm had revenue of $187.40 million during the quarter, compared to analyst estimates of $185.88 million. SPS Commerce had a net margin of 11.79% and a return on equity of 12.10%. SPS Commerce's revenue was up 22.0% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.80 EPS. SPS Commerce has set its FY 2025 guidance at 3.990-4.040 EPS. Q3 2025 guidance at 0.960-1.000 EPS. On average, research analysts predict that SPS Commerce will post 2.73 EPS for the current fiscal year.

Hedge Funds Weigh In On SPS Commerce

Several large investors have recently made changes to their positions in the company. Hardy Reed LLC lifted its stake in shares of SPS Commerce by 2.8% in the 2nd quarter. Hardy Reed LLC now owns 2,746 shares of the software maker's stock valued at $374,000 after purchasing an additional 75 shares during the period. Journey Strategic Wealth LLC lifted its stake in shares of SPS Commerce by 4.3% in the 1st quarter. Journey Strategic Wealth LLC now owns 1,919 shares of the software maker's stock valued at $255,000 after purchasing an additional 79 shares during the period. UMB Bank n.a. lifted its stake in shares of SPS Commerce by 60.6% in the 2nd quarter. UMB Bank n.a. now owns 212 shares of the software maker's stock valued at $29,000 after purchasing an additional 80 shares during the period. Alliance Wealth Advisors LLC UT lifted its stake in shares of SPS Commerce by 1.0% in the 1st quarter. Alliance Wealth Advisors LLC UT now owns 9,269 shares of the software maker's stock valued at $1,230,000 after purchasing an additional 90 shares during the period. Finally, MassMutual Private Wealth & Trust FSB lifted its stake in shares of SPS Commerce by 41.1% in the 2nd quarter. MassMutual Private Wealth & Trust FSB now owns 316 shares of the software maker's stock valued at $43,000 after purchasing an additional 92 shares during the period. 98.96% of the stock is currently owned by institutional investors and hedge funds.

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.

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