On May 23, 2023, Executive Vice President and Chief Financial Officer Kimberly Nelson sold 6,940 shares of SPS Commerce Inc (SPSC, Financial) at a price of $163.17 per share. This transaction comes as part of a series of insider sales by Nelson over the past year, during which she has sold a total of 44,339 shares and purchased none.
Who is Kimberly Nelson of SPS Commerce Inc?
Kimberly Nelson serves as the Executive Vice President and Chief Financial Officer of SPS Commerce Inc. She has been with the company since 2007 and has played a significant role in the company's financial growth and stability. With her extensive experience in finance and management, Nelson has been instrumental in guiding SPS Commerce through various market challenges and opportunities.
SPS Commerce Inc's Business Description
SPS Commerce Inc is a leading provider of cloud-based supply chain management solutions, offering a comprehensive suite of services that enable businesses to streamline their supply chain processes. The company's solutions include Electronic Data Interchange (EDI), analytics, sourcing, and collaboration tools, which help businesses improve efficiency, reduce costs, and enhance their relationships with trading partners. SPS Commerce serves a diverse range of industries, including retail, manufacturing, and logistics, and has a global customer base.
Insider Buy/Sell Analysis and Relationship with Stock Price
Over the past year, there have been no insider buys for SPS Commerce Inc, while there have been 28 insider sells. This trend suggests that insiders may be taking advantage of the stock's current valuation to realize gains. However, it is essential to consider the broader context of the company's performance and market conditions when interpreting insider transactions.
On the day of Kimberly Nelson's recent sale, shares of SPS Commerce Inc were trading at $163.17, giving the stock a market cap of $5,773.637 million. The price-earnings ratio is 101.31, which is higher than the industry median of 26.7 but lower than the company's historical median price-earnings ratio. This indicates that the stock may be overvalued compared to its peers but undervalued based on its historical performance.
With a price of $163.17 and a GuruFocus Value of $150.64, SPS Commerce Inc has a price-to-GF-Value ratio of 1.08. This means the stock is fairly valued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on the following three factors:
- Historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at.
- A GuruFocus adjustment factor based on the company's past returns and growth.
- Future estimates of business performance from Morningstar analysts.
While the recent insider sell by Kimberly Nelson may raise some concerns, it is essential to consider the overall context of the company's performance, valuation, and market conditions. Investors should continue to monitor insider transactions and other relevant financial data to make informed decisions about their investments in SPS Commerce Inc.
