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

SPS Commerce, Inc. (NASDAQ:SPSC) gapped up prior to trading on Wednesday . The stock had previously closed at $57.17, but opened at $59.76. SPS Commerce shares last traded at $59.5720, with a volume of 63,290 shares trading hands.

Wall Street Analysts Forecast Growth

Several research firms have commented on SPSC. Rothschild & Co Redburn set a $60.00 price objective on shares of SPS Commerce and gave the company a “neutral” rating in a report on Thursday, April 16th. Wall Street Zen upgraded SPS Commerce from a “hold” rating to a “buy” rating in a research report on Saturday, May 16th. Citigroup dropped their price target on SPS Commerce from $84.00 to $76.00 and set a “buy” rating for the company in a research note on Monday, May 4th. Weiss Ratings cut SPS Commerce from a “sell (d+)” rating to a “sell (d)” rating in a report on Wednesday, May 13th. Finally, Needham & Company LLC reduced 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. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, SPS Commerce has a consensus rating of “Hold” and a consensus target price of $76.45.

SPS Commerce Trading Up 1.3%

The firm’s 50-day moving average price is $55.00 and its 200-day moving average price is $66.19. The stock has a market capitalization of $2.17 billion, a PE ratio of 24.61 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 EPS for the quarter, topping analysts’ consensus estimates of $0.97 by $0.13. SPS Commerce had a return on equity of 12.43% and a net margin of 11.92%.The firm 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 business earned $1.00 EPS. The company’s quarterly 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. On average, equities research analysts predict that SPS Commerce, Inc. will post 3.41 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Marty M. Reaume sold 1,000 shares of the stock in a transaction dated Tuesday, April 7th. The shares were sold at an average price of $57.90, for a total value of $57,900.00. Following the sale, the director directly owned 9,158 shares of the company’s stock, valued at $530,248.20. This represents a 9.84% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.58% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. NewEdge Advisors LLC raised 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 worth $30,000 after buying an additional 191 shares during the period. Advisory Services Network LLC bought a new stake in shares of SPS Commerce during the 3rd quarter worth approximately $32,000. Global Retirement Partners LLC lifted its stake in shares of SPS Commerce by 2,130.0% during the 4th quarter. Global Retirement Partners LLC now owns 446 shares of the software maker’s stock worth $40,000 after acquiring an additional 426 shares during the last quarter. Summit Securities Group LLC purchased a new position in SPS Commerce during the 4th quarter valued at $45,000. Finally, Park Place Capital Corp grew its position in SPS Commerce by 29.7% in the 4th quarter. Park Place Capital Corp now owns 564 shares of the software maker’s stock valued at $50,000 after acquiring an additional 129 shares during the last quarter. Hedge funds and other institutional investors own 98.96% of the company’s stock.

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.