Sprout Social (NASDAQ:SPT) Trading Down 5.3% – Should You Sell?

Sprout Social, Inc. (NASDAQ:SPT)’s stock price traded down 5.3% during trading on Tuesday . The stock traded as low as $11.15 and last traded at $11.0560. 43,319 shares traded hands during mid-day trading, a decline of 95% from the average session volume of 909,487 shares. The stock had previously closed at $11.67.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on the company. Weiss Ratings reiterated a “sell (e+)” rating on shares of Sprout Social in a research note on Wednesday, October 8th. Morgan Stanley decreased their price target on Sprout Social from $17.00 to $14.00 and set an “equal weight” rating for the company in a report on Thursday, November 13th. Finally, Canaccord Genuity Group lowered their price objective on shares of Sprout Social from $25.00 to $16.00 and set a “buy” rating for the company in a research report on Friday, November 7th. Six analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $25.82.

Sprout Social Trading Down 5.0%

The firm has a market cap of $656.54 million, a P/E ratio of -13.70 and a beta of 0.79. The business’s 50 day moving average is $10.54 and its 200-day moving average is $14.56. The company has a quick ratio of 0.89, a current ratio of 0.89 and a debt-to-equity ratio of 0.23.

Sprout Social (NASDAQ:SPT) last announced its quarterly earnings data on Wednesday, November 5th. The company reported $0.23 earnings per share for the quarter, topping the consensus estimate of $0.16 by $0.07. The company had revenue of $115.59 million during the quarter, compared to analyst estimates of $114.86 million. Sprout Social had a negative net margin of 10.59% and a negative return on equity of 18.93%. The firm’s revenue for the quarter was up 12.7% compared to the same quarter last year. During the same period last year, the business earned $0.13 EPS. Sprout Social has set its FY 2025 guidance at 0.770-0.790 EPS and its Q4 2025 guidance at 0.150-0.170 EPS. As a group, analysts forecast that Sprout Social, Inc. will post -0.99 earnings per share for the current fiscal year.

Insider Activity at Sprout Social

In related news, insider Justyn Russell Howard sold 20,000 shares of the firm’s stock in a transaction on Tuesday, November 4th. The stock was sold at an average price of $10.22, for a total transaction of $204,400.00. Following the transaction, the insider directly owned 7,417 shares in the company, valued at $75,801.74. This trade represents a 72.95% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Aaron Edward Frederick Rankin acquired 90,661 shares of the stock in a transaction that occurred on Wednesday, December 17th. The shares were acquired at an average cost of $11.14 per share, with a total value of $1,009,963.54. Following the transaction, the director owned 114,969 shares in the company, valued at approximately $1,280,754.66. The trade was a 372.97% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Corporate insiders own 10.12% of the company’s stock.

Hedge Funds Weigh In On Sprout Social

Large investors have recently made changes to their positions in the business. Vanguard Group Inc. raised its stake in shares of Sprout Social by 4.4% during the 3rd quarter. Vanguard Group Inc. now owns 6,548,401 shares of the company’s stock worth $84,605,000 after purchasing an additional 276,300 shares in the last quarter. ArrowMark Colorado Holdings LLC grew its stake in shares of Sprout Social by 9.8% in the third quarter. ArrowMark Colorado Holdings LLC now owns 4,723,921 shares of the company’s stock worth $61,033,000 after acquiring an additional 421,189 shares during the last quarter. Jennison Associates LLC increased its holdings in shares of Sprout Social by 8.7% during the 2nd quarter. Jennison Associates LLC now owns 2,392,450 shares of the company’s stock worth $50,026,000 after purchasing an additional 192,007 shares during the period. Topline Capital Management LLC acquired a new position in Sprout Social in the 3rd quarter valued at approximately $17,555,000. Finally, Geode Capital Management LLC boosted its stake in Sprout Social by 1.5% during the second quarter. Geode Capital Management LLC now owns 1,241,902 shares of the company’s stock worth $25,971,000 after buying an additional 18,456 shares in the last quarter.

Sprout Social Company Profile

Sprout Social (NASDAQ: SPT) is a Chicago-based software company specializing in social media management solutions for businesses of all sizes. The company provides a cloud-based platform designed to help organizations improve their social media presence through a suite of tools for content scheduling, community engagement, social listening and analytics. Sprout Social’s platform is built to streamline the workflows of marketing, customer care and public relations teams by providing a centralized hub for managing multiple social channels.

The company’s product offerings include publishing and scheduling capabilities that allow users to plan and automate social content across networks such as Facebook, Instagram, Twitter, LinkedIn and Pinterest.