SPS Commerce (NASDAQ:SPSC) Shares Gap Up – Still a Buy?

SPS Commerce, Inc. (NASDAQ:SPSC) shares gapped up before the market opened on Tuesday . The stock had previously closed at $54.86, but opened at $56.45. SPS Commerce shares last traded at $57.4790, with a volume of 161,422 shares traded.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on SPSC. Morgan Stanley set a $70.00 price objective on shares of SPS Commerce in a research note on Friday, May 1st. Citigroup reduced 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. Cantor Fitzgerald set a $60.00 price target on SPS Commerce and gave the stock a “neutral” rating in a research report on Friday, May 1st. Needham & Company LLC dropped their price objective on SPS Commerce from $110.00 to $75.00 and set a “buy” rating on the stock in a research note on Friday, May 1st. Finally, Weiss Ratings cut SPS Commerce from a “sell (d+)” rating to a “sell (d)” rating in a research report on Wednesday, May 13th. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Hold” and a consensus price target of $76.45.

SPS Commerce Trading Up 5.4%

The stock has a market cap of $2.12 billion, a P/E ratio of 24.16 and a beta of 0.57. The firm has a 50-day simple moving average of $54.70 and a two-hundred day simple moving average of $67.75.

SPS Commerce (NASDAQ:SPSC) last issued its quarterly earnings data on Thursday, April 30th. The software maker reported $1.10 earnings per share for the quarter, topping the consensus estimate of $0.97 by $0.13. SPS Commerce had a net margin of 11.92% and a return on equity of 12.43%. The business had revenue of $192.12 million during the quarter, compared to analysts’ expectations of $192.50 million. During the same quarter in the previous year, the company earned $1.00 EPS. The business’s revenue 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. Sell-side analysts predict that SPS Commerce, Inc. will post 3.41 earnings per share for the current year.

Insider Buying and Selling at SPS Commerce

In related news, Director Marty M. Reaume sold 1,000 shares of the business’s stock in a transaction that occurred on Tuesday, April 7th. The stock was sold at an average price of $57.90, for a total value of $57,900.00. Following the completion of the sale, the director directly owned 9,158 shares in the company, valued at approximately $530,248.20. The trade was a 9.84% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.58% of the company’s stock.

Hedge Funds Weigh In On SPS Commerce

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Advisors Asset Management Inc. grew its holdings in shares of SPS Commerce by 39.9% during the 1st quarter. Advisors Asset Management Inc. now owns 393 shares of the software maker’s stock worth $52,000 after purchasing an additional 112 shares in the last quarter. State of Alaska Department of Revenue raised its stake in SPS Commerce by 0.6% in the fourth quarter. State of Alaska Department of Revenue now owns 20,986 shares of the software maker’s stock valued at $1,870,000 after purchasing an additional 126 shares in the last quarter. Park Place Capital Corp lifted its position in SPS Commerce by 29.7% during the fourth quarter. Park Place Capital Corp now owns 564 shares of the software maker’s stock worth $50,000 after purchasing an additional 129 shares during the period. PNC Financial Services Group Inc. lifted its position in SPS Commerce by 3.3% during the third quarter. PNC Financial Services Group Inc. now owns 4,687 shares of the software maker’s stock worth $488,000 after purchasing an additional 151 shares during the period. Finally, Evergreen Capital Management LLC grew its stake in SPS Commerce by 7.1% during the fourth quarter. Evergreen Capital Management LLC now owns 2,337 shares of the software maker’s stock worth $208,000 after buying an additional 155 shares in the last quarter. 98.96% of the stock is owned by institutional investors and hedge funds.

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.