SPS Commerce (NASDAQ:SPSC) Shares Gap Up – Should You Buy?

SPS Commerce, Inc. (NASDAQ:SPSC) gapped up prior to trading 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 trading hands.

Analysts Set New Price Targets

SPSC has been the subject of several analyst reports. Rothschild & Co Redburn set a $60.00 price objective on shares of SPS Commerce and gave the stock a “neutral” rating in a report on Thursday, April 16th. Wall Street Zen raised shares of SPS Commerce from a “hold” rating to a “buy” rating in a report on Saturday, May 16th. Stifel Nicolaus set a $60.00 target price on SPS Commerce in a research report on Friday, May 1st. Citigroup dropped their target price on SPS Commerce from $84.00 to $76.00 and set a “buy” rating on the stock in a research report on Monday, May 4th. Finally, Cantor Fitzgerald set a $60.00 price target on SPS Commerce and gave the company a “neutral” rating in a research report on Friday, May 1st. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $76.45.

SPS Commerce Price Performance

The firm’s 50 day moving average is $54.82 and its 200 day moving average is $67.35. The company has a market cap of $2.04 billion, a PE ratio of 23.14 and a beta of 0.57.

SPS Commerce (NASDAQ:SPSC) last posted its earnings results on Thursday, April 30th. The software maker reported $1.10 earnings per share (EPS) 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 for the quarter, compared to analysts’ expectations of $192.50 million. During the same period in the prior year, the company posted $1.00 EPS. The business’s revenue for the quarter was up 5.8% compared to the same quarter last year. 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, analysts anticipate that SPS Commerce, Inc. will post 3.41 EPS for the current year.

Insider Buying and Selling at SPS Commerce

In related news, Director Marty M. Reaume sold 1,000 shares of the stock in a transaction 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 sale, the director owned 9,158 shares in the company, valued at approximately $530,248.20. This trade represents a 9.84% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. 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

A number of institutional investors have recently added to or reduced their stakes in SPSC. Champlain Investment Partners LLC bought a new position in SPS Commerce in the third quarter valued at $36,735,000. Tudor Investment Corp ET AL raised its position in SPS Commerce by 161.5% during the third quarter. Tudor Investment Corp ET AL now owns 70,389 shares of the software maker’s stock valued at $7,330,000 after purchasing an additional 43,476 shares in the last quarter. Lightrock Netherlands B.V. bought a new stake in SPS Commerce during the fourth quarter worth about $7,389,000. Numerai GP LLC lifted its stake in SPS Commerce by 529.4% during the third quarter. Numerai GP LLC now owns 59,244 shares of the software maker’s stock worth $6,170,000 after purchasing an additional 49,831 shares during the last quarter. Finally, Bessemer Group Inc. lifted its stake in SPS Commerce by 1,149.1% during the fourth quarter. Bessemer Group Inc. now owns 98,208 shares of the software maker’s stock worth $8,753,000 after purchasing an additional 90,346 shares during the last quarter. 98.96% of the stock is currently owned by institutional investors.

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.