Wall Street Zen Upgrades Sprout Social (NASDAQ:SPT) to Buy

Sprout Social (NASDAQ:SPT) was upgraded by investment analysts at Wall Street Zen from a “hold” rating to a “buy” rating in a report released on Sunday.

A number of other analysts also recently issued reports on the company. Jefferies Financial Group cut their price objective on Sprout Social from $15.00 to $12.00 and set a “buy” rating for the company in a research report on Tuesday, February 3rd. KeyCorp lowered their target price on shares of Sprout Social from $9.00 to $6.00 and set an “underweight” rating for the company in a research note on Friday, February 27th. Morgan Stanley dropped their price target on shares of Sprout Social from $17.00 to $14.00 and set an “equal weight” rating for the company in a research report on Thursday, November 13th. The Goldman Sachs Group reduced their price target on shares of Sprout Social from $13.00 to $8.00 and set a “neutral” rating on the stock in a research note on Monday, March 2nd. Finally, Canaccord Genuity Group restated a “hold” rating and issued a $9.00 price objective (down from $16.00) on shares of Sprout Social in a report on Friday, February 27th. Four investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, Sprout Social has an average rating of “Hold” and an average target price of $13.67.

Sprout Social Trading Down 3.1%

SPT opened at $6.25 on Friday. Sprout Social has a one year low of $5.98 and a one year high of $25.81. The stock has a market capitalization of $369.94 million, a PE ratio of -8.45 and a beta of 0.94. The business’s 50 day moving average price is $8.57 and its 200 day moving average price is $10.76. The company has a debt-to-equity ratio of 0.20, a quick ratio of 0.93 and a current ratio of 0.93.

Sprout Social (NASDAQ:SPT) last issued its quarterly earnings data on Thursday, February 26th. The company reported $0.20 earnings per share for the quarter, topping the consensus estimate of $0.16 by $0.04. Sprout Social had a negative return on equity of 16.10% and a negative net margin of 9.47%.The company had revenue of $120.89 million during the quarter, compared to analyst estimates of $118.68 million. Sprout Social has set its FY 2026 guidance at 0.880-0.970 EPS and its Q1 2026 guidance at 0.150-0.160 EPS. As a group, equities research analysts expect that Sprout Social will post -0.99 EPS for the current year.

Insider Activity at Sprout Social

In other Sprout Social news, CEO Ryan Paul Barretto purchased 93,984 shares of Sprout Social stock in a transaction dated Friday, January 9th. The shares were acquired at an average price of $10.67 per share, with a total value of $1,002,809.28. Following the completion of the transaction, the chief executive officer owned 875,256 shares of the company’s stock, valued at $9,338,981.52. This trade represents a 12.03% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Justyn Russell Howard sold 40,000 shares of the firm’s stock in a transaction that occurred on Friday, January 9th. The shares were sold at an average price of $10.70, for a total transaction of $428,000.00. Following the completion of the transaction, the insider directly owned 7,417 shares of the company’s stock, valued at approximately $79,361.90. The trade was a 84.36% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 10.12% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Sprout Social

Large investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. boosted its position in Sprout Social by 4.2% in the 4th quarter. Vanguard Group Inc. now owns 6,822,928 shares of the company’s stock valued at $76,894,000 after buying an additional 274,527 shares during the period. 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 in the last quarter. State Street Corp increased its position in shares of Sprout Social by 8.2% during the fourth quarter. State Street Corp now owns 1,546,142 shares of the company’s stock worth $17,425,000 after acquiring an additional 117,757 shares during the period. Topline Capital Management LLC acquired a new stake in shares of Sprout Social in the third quarter valued at $17,555,000. Finally, Geode Capital Management LLC raised its stake in shares of Sprout Social by 11.0% in the fourth quarter. Geode Capital Management LLC now owns 1,254,451 shares of the company’s stock valued at $14,141,000 after acquiring an additional 123,983 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.