SPS Commerce (NASDAQ:SPSC) Downgraded by Zacks Research to Strong Sell

SPS Commerce (NASDAQ:SPSC) was downgraded by equities researchers at Zacks Research from a “hold” rating to a “strong sell” rating in a report issued on Tuesday,Zacks.com reports.

SPSC has been the subject of a number of other reports. Citigroup decreased their price target on SPS Commerce from $84.00 to $76.00 and set a “buy” rating for the company in a report on Monday, May 4th. Rothschild & Co Redburn set a $60.00 target price on SPS Commerce and gave the company a “neutral” rating in a research report on Thursday, April 16th. Needham & Company LLC decreased their target price on SPS Commerce from $110.00 to $75.00 and set a “buy” rating for the company in a research note on Friday, May 1st. Weiss Ratings raised SPS Commerce from a “sell (d)” rating to a “sell (d+)” rating in a research note on Wednesday, July 8th. Finally, Cantor Fitzgerald set a $60.00 target price on SPS Commerce and gave the stock a “neutral” rating in a report on Friday, May 1st. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, seven have given a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, SPS Commerce presently has an average rating of “Hold” and an average target price of $76.45.

SPS Commerce Stock Performance

NASDAQ:SPSC opened at $64.11 on Tuesday. SPS Commerce has a 52 week low of $49.04 and a 52 week high of $143.55. The firm’s fifty day moving average is $56.00 and its 200-day moving average is $64.34. The firm has a market cap of $2.35 billion, a P/E ratio of 26.71 and a beta of 0.56.

SPS Commerce (NASDAQ:SPSC) last announced its earnings results on Thursday, April 30th. The software maker reported $1.10 earnings per share 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 the consensus estimate of $192.50 million. SPS Commerce had a net margin of 11.92% and a return on equity of 12.43%. SPS Commerce’s quarterly revenue was up 5.8% on a year-over-year basis. During the same quarter last year, the firm 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. As a group, sell-side analysts anticipate that SPS Commerce will post 3.35 earnings per share for the current year.

Institutional Investors Weigh In On SPS Commerce

Several hedge funds and other institutional investors have recently bought and sold shares of SPSC. State Street Corp raised its holdings in shares of SPS Commerce by 0.6% during the fourth quarter. State Street Corp now owns 1,468,312 shares of the software maker’s stock valued at $130,871,000 after purchasing an additional 8,163 shares during the period. UBS Group AG grew its stake in shares of SPS Commerce by 182.3% in the 4th quarter. UBS Group AG now owns 1,295,267 shares of the software maker’s stock valued at $115,447,000 after buying an additional 836,407 shares during the period. Bank of America Corp DE grew its stake in shares of SPS Commerce by 3.3% in the 1st quarter. Bank of America Corp DE now owns 998,622 shares of the software maker’s stock valued at $55,593,000 after buying an additional 31,434 shares during the period. Disciplined Growth Investors Inc. MN increased its position in SPS Commerce by 86.4% in the 3rd quarter. Disciplined Growth Investors Inc. MN now owns 792,472 shares of the software maker’s stock valued at $82,528,000 after buying an additional 367,346 shares in the last quarter. Finally, Van Berkom & Associates Inc. increased its position in SPS Commerce by 9.9% in the 1st quarter. Van Berkom & Associates Inc. now owns 678,236 shares of the software maker’s stock valued at $37,757,000 after buying an additional 61,350 shares in the last quarter. 98.96% of the stock is owned by institutional investors.

About SPS Commerce

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.