The stock price of SPS Commerce Inc. (NASDAQ: SPSC) has dropped by -10.73 compared to previous close of 190.98. Despite this, the company has seen a fall of -11.58% in its stock price over the last five trading days. seekingalpha.com reported 2024-10-24 that SPS Commerce, Inc. (SPSC) Q3 2024 Earnings Call Transcript
Is It Worth Investing in SPS Commerce Inc. (NASDAQ: SPSC) Right Now?
The price-to-earnings ratio for SPS Commerce Inc. (NASDAQ: SPSC) is above average at 82.02x. The 36-month beta value for SPSC is also noteworthy at 0.82. There are mixed opinions on the stock, with 4 analysts rating it as a “buy,” 2 rating it as “overweight,” 4 rating it as “hold,” and 1 rating it as “sell.”
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The public float for SPSC is 37.10M, and at present, short sellers hold a 1.86% of that float. The average trading volume of SPSC on October 28, 2024 was 172.93K shares.
SPSC’s Market Performance
SPSC stock saw a decrease of -11.58% in the past week, with a monthly decline of -10.90% and a quarterly a decrease of -17.16%. The volatility ratio for the week is 3.75%, and the volatility levels for the last 30 days are 2.48% for SPS Commerce Inc. (SPSC). The simple moving average for the past 20 days is -11.12% for SPSC’s stock, with a -9.65% simple moving average for the past 200 days.
Analysts’ Opinion of SPSC
Redburn Atlantic, on the other hand, stated in their research note that they expect to see SPSC reach a price target of $220. The rating they have provided for SPSC stocks is “Buy” according to the report published on May 14th, 2024.
Citigroup gave a rating of “Buy” to SPSC, setting the target price at $216 in the report published on March 13th of the current year.
SPSC Trading at -11.49% from the 50-Day Moving Average
After a stumble in the market that brought SPSC to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -22.06% of loss for the given period.
Volatility was left at 2.48%, however, over the last 30 days, the volatility rate increased by 3.75%, as shares sank -11.32% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -13.87% lower at present.
During the last 5 trading sessions, SPSC fell by -11.58%, which changed the moving average for the period of 200-days by -4.19% in comparison to the 20-day moving average, which settled at $191.81. In addition, SPS Commerce Inc. saw -12.05% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at SPSC starting from Nelson Kimberly K., who sale 3,000 shares at the price of $196.12 back on Aug 19 ’24. After this action, Nelson Kimberly K. now owns 147,002 shares of SPS Commerce Inc., valued at $588,374 using the latest closing price.
Frome James J., the President and COO of SPS Commerce Inc., sale 3,684 shares at $197.31 during a trade that took place back on Aug 16 ’24, which means that Frome James J. is holding 43,466 shares at $726,874 based on the most recent closing price.
Stock Fundamentals for SPSC
Current profitability levels for the company are sitting at:
- 0.14 for the present operating margin
- 0.64 for the gross margin
The net margin for SPS Commerce Inc. stands at 0.13. The total capital return value is set at 0.1. Equity return is now at value 10.78, with 8.77 for asset returns.
Based on SPS Commerce Inc. (SPSC), the company’s capital structure generated 0.02 points at debt to capital in total, while cash flow to debt ratio is standing at 11.36. The debt to equity ratio resting at 0.02. The interest coverage ratio of the stock is 68.2.
Currently, EBITDA for the company is 112.0 million with net debt to EBITDA at -1.61. When we switch over and look at the enterprise to sales, we see a ratio of 10.03. The receivables turnover for the company is 10.19for trailing twelve months and the total asset turnover is 0.61. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.91.
Conclusion
In summary, SPS Commerce Inc. (SPSC) has had a bad performance as of late. Analysts have mixed opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
