Sprout Social (NASDAQ:SPT) Sets New 1-Year High – Should You Buy?

Shares of Sprout Social, Inc. (NASDAQ:SPT) reached a new 52-week high during mid-day trading on Tuesday. The stock traded as high as $12.24 and last traded at $12.3260, with a volume of 66,959 shares trading hands. The stock had previously closed at $11.66.

Analyst Ratings Changes

Several equities analysts recently issued reports on the company. Morgan Stanley increased their target price on Sprout Social from $10.00 to $11.00 and gave the stock an “equal weight” rating in a research note on Thursday, August 13th. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Sprout Social in a research report on Thursday. Zacks Research downgraded Sprout Social from a “strong-buy” rating to a “hold” rating in a research report on Monday, October 12th. Stifel Nicolaus boosted their price target on shares of Sprout Social from $12.00 to $14.00 and gave the stock a “buy” rating in a research note on Wednesday, October 14th. Finally, Wall Street Zen raised shares of Sprout Social from a “buy” rating to a “strong-buy” rating in a research report on Saturday, August 15th. Four analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $10.88.

Sprout Social Stock Up 5.5%

The firm has a market cap of $745.26 million, a PE ratio of -24.52 and a beta of 1.01. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.14. The firm has a 50 day moving average price of $10.55 and a 200-day moving average price of $8.32.

Sprout Social (NASDAQ:SPT) last released its earnings results on Thursday, August 6th. The company reported $0.26 earnings per share for the quarter, topping analysts’ consensus estimates of $0.16 by $0.10. Sprout Social had a negative net margin of 6.13% and a negative return on equity of 8.80%. The firm had revenue of $123.85 million for the quarter, compared to analyst estimates of $122.19 million. Sprout Social has set its FY 2026 guidance at 1.110-1.150 EPS and its Q3 2026 guidance at 0.290-0.300 EPS. Research analysts forecast that Sprout Social, Inc. will post -0.02 EPS for the current fiscal year.

Insider Transactions at Sprout Social

In other Sprout Social news, insider Justyn Howard sold 40,000 shares of the stock in a transaction that occurred on Friday, October 9th. The shares were sold at an average price of $11.02, for a total value of $440,800.00. Following the sale, the insider directly owned 7,417 shares of the company’s stock, valued at approximately $81,735.34. This represents a 84.36% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 51,612 shares of company stock valued at $573,757 in the last ninety days. 9.60% of the stock is owned by insiders.

Institutional Investors Weigh In On Sprout Social

Several institutional investors have recently modified their holdings of SPT. Pale Fire Capital SE purchased a new position in Sprout Social in the first quarter valued at $1,960,000. Arrowstreet Capital Limited Partnership lifted its holdings in Sprout Social by 46.9% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 442,496 shares of the company’s stock worth $2,522,000 after buying an additional 141,258 shares during the last quarter. Pacer Advisors Inc. purchased a new stake in Sprout Social during the 1st quarter worth about $1,500,000. Bank of New York Mellon Corp purchased a new stake in Sprout Social during the 2nd quarter worth about $1,658,000. Finally, Haveli Investment Management LLC acquired a new position in shares of Sprout Social during the 2nd quarter worth about $16,405,033.

About Sprout Social

Sprout Social, Inc (NASDAQ:SPT) provides a cloud-based social media management and analytics platform for businesses, agencies and organizations. Its software helps customers manage their social media presence, coordinate workflows and use social data to support marketing, customer care, communications and business decision-making.

The company’s platform includes tools for publishing and scheduling content, monitoring and responding to messages, analyzing social media performance, and conducting social listening.