SPS Commerce CFO Kimberly Nelson sells $754,653 in stock

Published 28/02/2025, 22:26
SPS Commerce CFO Kimberly Nelson sells $754,653 in stock

MINNEAPOLIS—Kimberly Nelson, Executive Vice President and Chief Financial Officer of SPS Commerce Inc. (NASDAQ:SPSC), recently sold a significant portion of her holdings in the company. According to a filing with the Securities and Exchange Commission, Nelson sold a total of 5,490 shares of common stock on February 26, 2025. The transaction comes as the stock has declined about 34% over the past six months, according to InvestingPro data.

The sales were executed at prices ranging from $136.287 to $139.3419 per share, amounting to a total transaction value of $754,653. Following these transactions, Nelson retains direct ownership of 151,752 shares of SPS Commerce. The company, currently valued at approximately $5 billion, maintains a strong financial position with an InvestingPro Financial Health score of "GOOD" and holds more cash than debt on its balance sheet.

These transactions were conducted under a Rule 10b5-1 trading plan, which allows insiders to set up a predetermined schedule for selling company stock to avoid potential conflicts of interest. Despite recent stock performance, analysts maintain a bullish outlook with a consensus "Buy" recommendation. For deeper insights into SPSC’s valuation and growth prospects, including 17 additional ProTips, check out the comprehensive research report available on InvestingPro.

In other recent news, SPS Commerce reported its fourth-quarter earnings, showing an earnings per share (EPS) of $0.89, slightly exceeding the consensus estimate of $0.87. The company’s revenue for the quarter was $170.9 million, surpassing expectations of $168.76 million and marking an 18% increase from the previous year. Despite these positive results, SPS Commerce’s guidance for the first quarter of 2025 disappointed investors, with an EPS range of $0.82-$0.84, below the consensus of $0.92, and revenue projections closely aligned with expectations.

Analysts have responded to these developments with mixed reactions. Citi, Needham, and Piper Sandler have all adjusted their price targets downward, citing concerns about slower growth, though they maintained Buy or Neutral ratings. Stifel also revised its price target to $200, highlighting the company’s new Total (EPA:TTEF) Addressable Market (TAM) framework, which suggests significant growth opportunities. DA Davidson maintained its Buy rating and $245 price target, noting the company’s strong EBITDA margin guidance and increased TAM estimate.

In addition to financial updates, SPS Commerce expanded its board of directors, appointing Razat Gaurav as a new independent director. This move comes as James Ramsey plans to retire, and Gaurav’s experience is expected to contribute positively to the company’s governance and strategy. These recent developments provide investors with insights into SPS Commerce’s current financial health and strategic direction.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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