SPS Commerce (NASDAQ:SPSC) Given New $70.00 Price Target at DA Davidson

SPS Commerce (NASDAQ:SPSC) had its price objective upped by investment analysts at DA Davidson from $65.00 to $70.00 in a research report issued on Friday, Benzinga reports. The firm presently has a “neutral” rating on the software maker’s stock. DA Davidson‘s price objective indicates a potential downside of 15.77% from the stock’s previous close.

Several other research analysts also recently issued reports on the stock. Citigroup restated a “buy” rating and set a $99.00 price objective (up from $82.00) on shares of SPS Commerce in a report on Tuesday, October 20th. Cantor Fitzgerald restated a “neutral” rating and issued a $70.00 target price (up from $60.00) on shares of SPS Commerce in a research note on Friday, July 31st. Morgan Stanley reaffirmed an “underweight” rating and set a $74.00 price objective on shares of SPS Commerce in a report on Monday. Wall Street Zen raised SPS Commerce from a “hold” rating to a “buy” rating in a report on Sunday, October 25th. Finally, Needham & Company LLC reissued a “buy” rating and issued a $100.00 price objective (up from $75.00) on shares of SPS Commerce in a research note on Wednesday, August 19th. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $82.30.

SPS Commerce Price Performance

SPS Commerce stock traded down $2.68 during mid-day trading on Friday, hitting $83.10. The company’s stock had a trading volume of 405,120 shares, compared to its average volume of 646,595. The company has a market cap of $2.99 billion, a PE ratio of 40.19 and a beta of 0.62. The firm’s 50 day moving average is $83.31 and its 200 day moving average is $68.47. SPS Commerce has a 52-week low of $49.04 and a 52-week high of $96.54.

SPS Commerce (NASDAQ:SPSC) last released its quarterly earnings data on Thursday, October 29th. The software maker reported $1.39 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.23 by $0.16. SPS Commerce had a return on equity of 13.04% and a net margin of 10.10%. The firm had revenue of $197.65 million during the quarter, compared to analysts’ expectations of $197.51 million. During the same quarter last year, the firm earned $1.13 earnings per share. The business’s revenue for the quarter was up 4.1% on a year-over-year basis. As a group, analysts forecast that SPS Commerce will post 3.56 EPS for the current year.

Hedge Funds Weigh In On SPS Commerce

Several institutional investors and hedge funds have recently modified their holdings of SPSC. Greenleaf Trust bought a new stake in SPS Commerce in the 3rd quarter valued at $237,000. Mirae Asset Global Investments Co. Ltd. acquired a new stake in SPS Commerce in the 3rd quarter valued at $185,000. Vise Technologies Inc. boosted its stake in shares of SPS Commerce by 16.3% during the 3rd quarter. Vise Technologies Inc. now owns 4,276 shares of the software maker’s stock worth $353,000 after buying an additional 600 shares during the last quarter. Summit Global Investments grew its stake in SPS Commerce by 36.4% in the third quarter. Summit Global Investments now owns 19,741 shares of the software maker’s stock valued at $1,627,000 after purchasing an additional 5,263 shares in the last quarter. Finally, Angeles Wealth Management LLC bought a new stake in SPS Commerce during the third quarter worth $280,000. 98.96% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting SPS Commerce

Here are the key news stories impacting SPS Commerce this week:

• Positive Sentiment: Third-quarter adjusted EPS was $1.39, exceeding the $1.23 consensus estimate and rising from $1.13 a year earlier. Revenue of $197.6 million also narrowly topped expectations. SPS Commerce Q3 Earnings and Revenues Beat Estimates
• Positive Sentiment: Profitability improved, with adjusted EBITDA increasing 17% to $70.9 million and GAAP net income reaching $30.7 million, compared with $25.6 million in the prior-year quarter. SPS Commerce also repurchased $48.8 million of stock during the quarter. SPS Commerce Reports Strong Third Quarter 2026 Financial Results
• Neutral Sentiment: Management forecast fourth-quarter revenue of $199.3 million to $201.3 million and GAAP diluted EPS of $0.74 to $0.79. Full-year 2026 revenue guidance is $786.9 million to $788.9 million, with GAAP EPS of $2.29 to $2.35. SPS Commerce Provides Earnings Guidance
• Negative Sentiment: Revenue increased only 4% year over year to $197.6 million, with recurring revenue also growing 4%. Results were affected by the divestiture of the 3P Revenue Recovery business and variability in the 1P Revenue Recovery take-rate model, adding uncertainty to near-term growth.
• Negative Sentiment: The earnings beat may not have been enough to satisfy investors given SPS Commerce’s relatively elevated valuation—roughly 40 times earnings—and concerns that limited top-line growth could constrain further upside.

SPS Commerce Company Profile

SPS Commerce, Inc provides cloud-based supply chain management software for retailers, suppliers, distributors and logistics providers. Its platform helps businesses manage and automate transactions and workflows across complex retail and e-commerce networks.

The company’s solutions include electronic data interchange (EDI), order management, inventory visibility, fulfillment, invoice and payment processing, product information management, and supply chain analytics. These tools are designed to connect trading partners, reduce manual data entry, improve order accuracy and support more efficient movement of products from suppliers to consumers.

Founded in 2001 and headquartered in Minneapolis, Minnesota, SPS Commerce serves businesses across retail and wholesale ecosystems in North America and other international markets.