What happened
According to a SEC filing dated Jan. 20, 2026, TRAN Capital Management, L.P. (TCM) sold its entire SPS Commerce stake during the fourth quarter, divesting 147,591 shares. The estimated transaction value was $15.37 million, calculated using the quarter’s average share price. The fund reported a net position change of $15.37 million for this holding, capturing the combined effects of trade activity and price fluctuation.
What else to know
TCM fully sold out of SPS Commerce.
Top holdings after the filing:
- Nvidia: $60.95 million (7.3% of AUM)
- Talen Energy: $59.99 million (7.2% of AUM)
- Amazon: $59.51 million (7.1% of AUM)
- Microsoft: $58.12 million (7.0% of AUM)
- Danaher: $41.71 million (5.0% of AUM)
As of Jan. 21, 2026, shares were priced at $91.13, down 53.0% over the prior year, underperforming the S&P 500 by 67 percentage points.
Company overview
| Metric | Value |
|---|---|
| Price (as of market close Jan. 16, 2026) | $91.13 |
| Market Capitalization | $3.48 billion |
| Revenue (TTM) | $729.76 million |
| Net Income (TTM) | $85.06 million |
Company snapshot
SPS Commerce:
- Offers cloud-based supply chain management solutions, including fulfillment automation, analytics, assortment, and community products.
- Provides cloud-based software services that enable digital order management and supply chain automation.
- Serves retailers, suppliers, grocers, distributors, and logistics firms seeking to optimize omnichannel order fulfillment and trading partner collaboration.
SPS Commerce is a leading provider of cloud-based supply chain management platforms that enable automation and enhanced visibility for trading partners worldwide. The company leverages a subscription-driven model to deliver scalable solutions for retailers and suppliers, supporting efficient order fulfillment and compliance. Its broad customer base and focus on digital connectivity provide a competitive advantage in the evolving supply chain technology sector.
What this transaction means for investors
One quarter after opening a position in SPS Commerce and making the company a 1.8% portion of its portfolio, TMC sold out of the stock. While we can’t be sure of the reasoning behind this sale, I tend to take a contrarian stance and believe the stock is a buy. That said, the industry-leading supply chain management solutions provider is down over 50% from its 52-week high, so it might be as simple as TMC not wanting to double down on what could potentially be a falling knife.
From a business-level perspective, however, there is a lot to like about SPS Commerce, as it:
- has grown sales for 99 quarters in a row
- delivered 18% annualized total returns since 2010
- should benefit from the megatrend of a shift toward omnichannel sales
- now trades at 24 times free cash flow (FCF) versus its five-year average of 52
While the broader software industry is currently waging a war against AI, trying to prove it won’t be disrupted by the burgeoning technology, I don’t think SPS Commerce will be remotely affected by this notion, thanks to the benefits of interconnectedness it brings to the retailers, third-party logistics providers, and suppliers it serves. Growing sales and earnings per share by 16% and 23% in its latest quarter — and guiding for reasonable organic sales growth of 8% in 2026 — I’ll take the opposite side of TMC’s sale.
