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 sells by Nelson over the past year, totaling 44,339 shares sold and no shares purchased.
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 joined the company in 2007 and has played a crucial role in the company's financial management and growth. With her extensive experience in finance and accounting, Nelson has been instrumental in driving the company's strategic initiatives and financial performance.
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 customer relationships. 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, including the recent transaction by Kimberly Nelson. This trend could indicate that insiders believe the stock is overvalued or that they are taking advantage of the current market conditions to realize gains on their investments.
On the day of Nelson's recent sell, shares of SPS Commerce Inc were trading at $163.17, giving the company a market capitalization of $5,885.428 million. The stock's price-earnings ratio is 103.27, which is higher than the industry median of 26.81 but lower than the company's historical median price-earnings ratio. This suggests that the stock may be overvalued compared to its peers and historical performance.
With a price of $163.17 and a GuruFocus Value of $150.68, SPS Commerce Inc has a price-to-GF-Value ratio of 1.08, indicating that the stock is fairly valued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus, which takes into account historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts.
Conclusion
The recent insider sell by EVP & CFO Kimberly Nelson, along with the overall trend of insider sells over the past year, could be a signal for investors to keep a close eye on SPS Commerce Inc's stock performance. While the stock is currently fairly valued based on its GF Value, the higher-than-industry-average price-earnings ratio may indicate potential overvaluation. Investors should consider these factors, along with the company's business performance and growth prospects, when making investment decisions.
