Zacks Research Upgrades SPS Commerce (NASDAQ:SPSC) to Hold

Key Points

• Zacks Research upgraded SPS Commerce from “strong sell” to “hold”, adding to a broadly cautious Wall Street view of the stock.
• Analyst sentiment remains mixed but tilted neutral: the company now has a consensus rating of “Hold” and an average price target of $75.82.
• SPS Commerce recently beat earnings expectations with Q1 EPS of $1.10 versus $0.97 expected, while revenue rose 5.8% year over year to $192.12 million.

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

Several other equities research analysts have also commented on the company. DA Davidson set a $55.00 price objective on SPS Commerce and gave the stock a "neutral" rating in a research note on Wednesday, July 1st. Needham & Company LLC decreased their target price on SPS Commerce from $110.00 to $75.00 and set a "buy" rating on the stock in a research report on Friday, May 1st. Stifel Nicolaus set a $60.00 price target on SPS Commerce in a research note on Friday, May 1st. Wall Street Zen cut SPS Commerce from a "buy" rating to a "hold" rating in a research report on Saturday. Finally, Cantor Fitzgerald set a $60.00 price objective on SPS Commerce and gave the company a "neutral" rating in a research note on Friday, May 1st. One 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 data from MarketBeat, SPS Commerce presently has a consensus rating of "Hold" and a consensus price target of $75.82.

SPS Commerce Stock Performance

Shares of NASDAQ SPSC opened at $62.03 on Monday. The firm has a fifty day moving average of $56.81 and a 200 day moving average of $63.60. The firm has a market cap of $2.28 billion, a PE ratio of 25.85 and a beta of 0.56. SPS Commerce has a one year low of $49.04 and a one year high of $141.98.

SPS Commerce (NASDAQ:SPSC - Get Free Report) last announced its earnings results on Thursday, April 30th. The software maker reported $1.10 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.97 by $0.13. The business had revenue of $192.12 million for the quarter, compared to analyst estimates of $192.50 million. SPS Commerce had a net margin of 11.92% and a return on equity of 12.43%. The company's revenue for the quarter was up 5.8% compared to the same quarter last year. During the same quarter last year, the business 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, equities analysts predict that SPS Commerce will post 3.43 EPS for the current fiscal year.

Hedge Funds Weigh In On SPS Commerce

A number of institutional investors have recently added to or reduced their stakes in the stock. Advisors Asset Management Inc. increased its stake 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 during 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 acquiring an additional 275 shares during the last quarter. NewEdge Advisors LLC grew its holdings in shares of SPS Commerce by 545.7% in the first quarter. NewEdge Advisors LLC now owns 226 shares of the software maker's stock valued at $30,000 after purchasing an additional 191 shares during the period. EverSource Wealth Advisors LLC grew its holdings in shares of SPS Commerce by 137.7% in the second quarter. EverSource Wealth Advisors LLC now owns 649 shares of the software maker's stock valued at $88,000 after purchasing an additional 376 shares during the period. Finally, First Trust Advisors LP increased its position in SPS Commerce by 83.2% during 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 during the last quarter. Hedge funds and other 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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