SPS Commerce (NASDAQ:SPSC) Shares Gap Down – Should You Sell?

Shares of SPS Commerce, Inc. (NASDAQ:SPSC) gapped down prior to trading on Tuesday . The stock had previously closed at $65.72, but opened at $62.44. SPS Commerce shares last traded at $62.7230, with a volume of 37,573 shares changing hands.

Analyst Ratings Changes

Several brokerages have commented on SPSC. Zacks Research upgraded shares of SPS Commerce from a “strong sell” rating to a “hold” rating in a research report on Monday. Wall Street Zen cut SPS Commerce from a “buy” rating to a “hold” rating in a research note on Saturday, July 18th. Cantor Fitzgerald set a $60.00 price objective on SPS Commerce and gave the company a “neutral” rating in a report on Friday, May 1st. Rothschild & Co Redburn set a $60.00 target price on SPS Commerce and gave the company a “neutral” rating in a research note on Thursday, April 16th. Finally, Needham & Company LLC reduced their target price on SPS Commerce from $110.00 to $75.00 and set a “buy” rating on the stock in a report on Friday, May 1st. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, seven have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, SPS Commerce currently has a consensus rating of “Hold” and an average price target of $75.82.

SPS Commerce Stock Down 3.1%

The company’s fifty day simple moving average is $57.01 and its two-hundred day simple moving average is $63.40. The company has a market capitalization of $2.21 billion, a price-to-earnings ratio of 25.05 and a beta of 0.56.

SPS Commerce (NASDAQ:SPSC) last announced its quarterly 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. SPS Commerce had a net margin of 11.92% and a return on equity of 12.43%. The company had revenue of $192.12 million during the quarter, compared to analyst estimates of $192.50 million. During the same quarter in the previous year, the business earned $1.00 EPS. The firm’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. Equities research analysts expect that SPS Commerce, Inc. will post 3.43 earnings per share for the current year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. UBS Group AG increased its holdings in shares of SPS Commerce by 182.3% in the fourth quarter. UBS Group AG now owns 1,295,267 shares of the software maker’s stock worth $115,447,000 after acquiring an additional 836,407 shares in the last quarter. Norges Bank bought a new position in shares of SPS Commerce during the 4th quarter valued at about $49,883,000. Irenic Capital Management LP acquired a new position in shares of SPS Commerce in the 4th quarter valued at approximately $40,293,000. Walleye Capital LLC grew its position in shares of SPS Commerce by 1,749.1% in the 1st quarter. Walleye Capital LLC now owns 457,635 shares of the software maker’s stock valued at $25,477,000 after purchasing an additional 432,886 shares during the period. Finally, Disciplined Growth Investors Inc. MN increased its stake in SPS Commerce by 86.4% during the 3rd quarter. Disciplined Growth Investors Inc. MN now owns 792,472 shares of the software maker’s stock worth $82,528,000 after purchasing an additional 367,346 shares in the last quarter. 98.96% of the stock is owned by institutional investors and hedge funds.

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.