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

Shares of SPS Commerce, Inc. (NASDAQ:SPSC) gapped down before the market opened 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 traded.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on SPSC. Citigroup reiterated a “buy” rating on shares of SPS Commerce in a research note on Tuesday. Wall Street Zen lowered shares of SPS Commerce from a “buy” rating to a “hold” rating in a research note on Saturday. DA Davidson set a $55.00 price target on shares of SPS Commerce and gave the stock a “neutral” rating in a report on Wednesday, July 1st. Needham & Company LLC decreased their price target on shares of SPS Commerce from $110.00 to $75.00 and set a “buy” rating for the company in a research note on Friday, May 1st. Finally, Cantor Fitzgerald set a $60.00 price objective on shares of SPS Commerce and gave the company a “neutral” rating in a report on Friday, May 1st. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, six have issued a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $75.27.

SPS Commerce Stock Down 3.6%

The stock has a market cap of $2.33 billion, a price-to-earnings ratio of 26.40 and a beta of 0.56. The stock has a 50 day simple moving average of $56.61 and a 200 day simple moving average of $63.80.

SPS Commerce (NASDAQ:SPSC) last issued its earnings results on Thursday, April 30th. The software maker reported $1.10 earnings per share 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 company had revenue of $192.12 million for the quarter, compared to analyst estimates of $192.50 million. During the same period in the prior year, the firm earned $1.00 earnings per share. SPS Commerce’s revenue for the quarter 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 analysts expect that SPS Commerce, Inc. will post 3.35 earnings per share for the current year.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the business. Tudor Investment Corp ET AL boosted its stake in shares of SPS Commerce by 161.5% in the 3rd quarter. Tudor Investment Corp ET AL now owns 70,389 shares of the software maker’s stock worth $7,330,000 after buying an additional 43,476 shares during the last quarter. Lightrock Netherlands B.V. purchased a new stake in shares of SPS Commerce during the fourth quarter valued at approximately $7,389,000. Bessemer Group Inc. increased its position in shares of SPS Commerce by 1,149.1% during the fourth quarter. Bessemer Group Inc. now owns 98,208 shares of the software maker’s stock valued at $8,753,000 after acquiring an additional 90,346 shares during the last quarter. VELA Investment Management LLC bought a new stake in SPS Commerce during the fourth quarter worth $1,798,000. Finally, SG Americas Securities LLC lifted its holdings in SPS Commerce by 205.3% during the fourth quarter. SG Americas Securities LLC now owns 39,753 shares of the software maker’s stock worth $3,543,000 after acquiring an additional 26,730 shares during the period. 98.96% of the stock is owned by institutional investors.

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.