SPS Commerce CFO Kimberly Nelson sells shares worth $807,818

Published 21/02/2025, 01:50
SPS Commerce CFO Kimberly Nelson sells shares worth $807,818

Kimberly Nelson, the Executive Vice President and Chief Financial Officer of SPS Commerce Inc. (NASDAQ:SPSC), a company with a market capitalization of $5.47 billion and impressive revenue growth of 18.78% over the last twelve months, recently executed a series of stock transactions involving the company’s common stock. According to a filing with the Securities and Exchange Commission, Nelson sold shares totaling $807,818 over several transactions on February 19 and February 20, 2025. InvestingPro analysis shows the stock currently trading near its 52-week low of $142.81.

The sale prices for these transactions ranged from $144.0099 to $150.0524 per share. These sales were conducted under a pre-established trading plan, as indicated by the filing. Following these transactions, Nelson’s direct ownership of SPS Commerce common stock stands at 2,441,512 shares. According to InvestingPro data, the stock currently trades at a P/E ratio of 69.38, suggesting a premium valuation relative to peers.

In addition to the sales, Nelson acquired 2,300,000 shares of common stock through a restricted stock unit award on February 18, 2025, which vests annually over four years. This acquisition, however, was at no cost as part of her compensation package. InvestingPro analysis indicates the company maintains strong financial health with minimal debt and robust liquidity ratios. Subscribers can access 15+ additional ProTips and comprehensive financial metrics in the Pro Research Report.

In other recent news, SPS Commerce reported fourth-quarter earnings that slightly exceeded analyst expectations, with an earnings per share (EPS) of $0.89 and revenue of $170.9 million, surpassing the consensus estimates. Despite this positive performance, the company’s guidance for the first quarter and full year of 2025 fell short of expectations, with projected EPS and revenue figures below analyst consensus. This has led to adjustments in price targets by several analysts. Piper Sandler reduced its price target to $175, maintaining a Neutral rating, while Stifel revised its target to $200, retaining a Buy rating. Needham also lowered its price target to $210 but kept a Buy rating, citing a modest revenue overperformance. DA Davidson maintained a Buy rating with a $245 target, highlighting a stronger EBITDA margin and a revised total addressable market (TAM). The new TAM framework, now estimated at $11.1 billion, indicates significant growth opportunities, though some analysts express concerns about the pace of net customer additions. The company’s recent strategic moves, including entering the revenue recovery sector, are seen as positive steps toward expanding its market share.

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