Director Sven Wehrwein Sells 1,500 Shares of SPS Commerce Inc
On November 2, 2023, Sven Wehrwein, a director at SPS Commerce Inc (NASDAQ:SPSC), sold 1,500 shares of the company. This move is part of a trend for the insider, who over the past year has sold a total of 3,500 shares and made no purchases.
SPS Commerce Inc is a leading provider of cloud-based supply chain management solutions, offering a network that connects suppliers, retailers, distributors, and logistics service providers. The company's solutions are designed to streamline the order cycle, which can lead to increased efficiency and reduced costs for businesses.
The insider's recent sale comes at a time when the stock is trading at $161.62, giving the company a market cap of $6.114 billion. The price-earnings ratio stands at 99.18, higher than the industry median of 25.77 but lower than the companys historical median price-earnings ratio.
The insider transaction history for SPS Commerce Inc shows a clear trend of more sells than buys. Over the past year, there have been 27 insider sells and no insider buys. This could indicate that insiders believe the stock is currently overvalued, prompting them to sell their shares.
The GuruFocus Value of SPS Commerce Inc is $164.96, slightly higher than its current trading price. This gives the stock a price-to-GF-Value ratio of 0.98, indicating that it is fairly valued. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts.
In conclusion, the insider's recent sale of SPS Commerce Inc shares, along with the overall trend of insider selling over the past year, could be a signal to investors to exercise caution. While the stock appears to be fairly valued according to the GF Value, the high price-earnings ratio compared to the industry median and the company's historical median could be a cause for concern. As always, investors should conduct their own research and consider multiple factors before making investment decisions.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
