Sprout Social (NASDAQ:SPT) Stock Price Down 6.6% – Time to Sell?

Sprout Social, Inc. (NASDAQ:SPT)’s share price was down 6.6% during trading on Friday . The stock traded as low as $9.60 and last traded at $9.4660. Approximately 293,358 shares traded hands during trading, a decline of 71% from the average daily volume of 1,023,872 shares. The stock had previously closed at $10.14.

Analyst Ratings Changes

A number of analysts recently issued reports on SPT shares. Barclays dropped their price target on shares of Sprout Social from $26.00 to $13.00 and set an “overweight” rating for the company in a research note on Monday. Morgan Stanley decreased their price objective on shares of Sprout Social from $17.00 to $14.00 and set an “equal weight” rating for the company in a report on Thursday, November 13th. Weiss Ratings restated a “sell (e+)” rating on shares of Sprout Social in a research note on Wednesday, October 8th. Finally, Canaccord Genuity Group reduced their price target on shares of Sprout Social from $25.00 to $16.00 and set a “buy” rating on the stock in a research report on Friday, November 7th. Six equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $24.64.

Sprout Social Trading Down 5.5%

The stock has a market cap of $567.04 million, a P/E ratio of -11.83 and a beta of 0.81. The firm’s 50 day simple moving average is $10.55 and its two-hundred day simple moving average is $13.40. 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 posted its quarterly earnings results on Wednesday, November 5th. The company reported $0.23 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.16 by $0.07. Sprout Social had a negative net margin of 10.59% and a negative return on equity of 18.93%. The company had revenue of $115.59 million for the quarter, compared to the consensus estimate of $114.86 million. During the same period last year, the firm posted $0.13 EPS. The company’s revenue for the quarter was up 12.7% on a year-over-year basis. 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, equities research analysts predict that Sprout Social, Inc. will post -0.99 earnings per share for the current fiscal year.

Insider Buying and Selling at Sprout Social

In related news, Director Aaron Edward Frederick Rankin bought 90,661 shares of the stock in a transaction dated Wednesday, December 17th. The stock was bought at an average cost of $11.14 per share, with a total value of $1,009,963.54. Following the completion of the acquisition, the director owned 114,969 shares of the company’s stock, valued at $1,280,754.66. This trade represents a 372.97% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Justyn Russell Howard sold 40,000 shares of the stock in a transaction that occurred on Friday, January 9th. The stock was sold at an average price of $10.70, for a total value of $428,000.00. Following the sale, the insider owned 7,417 shares in the company, valued at $79,361.90. The trade was a 84.36% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 10.12% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Sprout Social

Several hedge funds and other institutional investors have recently modified their holdings of SPT. Topline Capital Management LLC acquired a new stake in shares of Sprout Social in the 3rd quarter worth about $17,555,000. Cubist Systematic Strategies LLC grew its position in Sprout Social by 739.6% in the 2nd quarter. Cubist Systematic Strategies LLC now owns 714,089 shares of the company’s stock worth $14,932,000 after purchasing an additional 629,033 shares during the last quarter. Norges Bank acquired a new stake in shares of Sprout Social in the second quarter valued at approximately $10,694,000. Canada Pension Plan Investment Board raised its holdings in shares of Sprout Social by 20,382.0% during the second quarter. Canada Pension Plan Investment Board now owns 471,087 shares of the company’s stock valued at $9,850,000 after buying an additional 468,787 shares during the last quarter. Finally, Federated Hermes Inc. boosted its position in shares of Sprout Social by 182.3% during the second quarter. Federated Hermes Inc. now owns 687,234 shares of the company’s stock worth $14,370,000 after buying an additional 443,774 shares during the period.

About Sprout Social

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.