SPSC SPS Commerce Inc

Fort Washington Investment Advisors Inc. OH significantly increased its stake in SPS Commerce, Inc. ($SPSC) by 82.3% in the third quarter of 2025, now holding 236,886 shares valued at approximately $24.67 million. Despite mixed analyst sentiment leading to a "Hold" consensus rating and a target price of $106.80, SPS Commerce reported better-than-expected Q3 EPS of $1.13, though revenue slightly missed forecasts at $189.9 million. The company provided FY2025 EPS guidance of $4.10-$4.15.

SPS Commerce, Inc. (NASDAQ:SPSC) has received an average rating of "Hold" from twelve research firms, with a consensus 12-month price target of $106.80. This follows its Q3 earnings where it beat EPS estimates but slightly missed revenue, and several analysts adjusted their price targets downward. The company's shares are currently trading below their 200-day moving average, with institutional investors holding significant stakes.

SPS Commerce is facing activist pressure and questions about its capital allocation after its Carbon6 acquisition was undermined by Amazon marketplace rule changes. This has led to renewed scrutiny of the company's investment strategy, especially concerning its share buyback program and future M&A activities, as activists push for a potential sale or "strategic alternatives." The analysis focuses on how this pressure might reshape SPS Commerce's investment narrative and impact its future growth and decision-making.

Riverbridge Partners LLC has reduced its stake in SPS Commerce, Inc. ($SPSC) by 9.1%, selling 47,195 shares. After the sale, the firm still owns 471,225 shares, valued at approximately $49.1 million, representing about 1.24% of the company. This action comes as SPS Commerce beat Q3 EPS estimates but had slightly lower-than-consensus revenue, with analysts holding a mixed "Hold" consensus rating and a target price of $106.80.

SPS Commerce (SPSC) is facing activist pressure for a potential sale after its Carbon6 deal encountered Amazon marketplace headwinds, leading to a significant drop in share price despite recent recovery. While analysts see modest upside and an intrinsic discount, the company's valuation on earnings multiples appears less forgiving compared to its US Software industry peers. Investors are now evaluating whether SPS Commerce represents an undervalued opportunity or if its current price already reflects future growth.

This article summarizes a bullish thesis on SPS Commerce, Inc. (SPSC), a cloud-based supply chain management solutions provider. Despite a recent stock drop and acquisition misstep, the company maintains a solid business with consistent revenue growth, strong customer retention, and a clean balance sheet, attracting activist investor interest. The article suggests that while SPSC's valuation has compressed, its fundamental strengths could lead to a rebound, though other AI stocks might offer greater upside.