Sprout Social (NASDAQ:SPT) Stock Jumps 5.3% – What’s Next?

Sprout Social, Inc. (NASDAQ:SPT) rose 5.3% during trading on Wednesday. The company traded as high as $10.68 and last traded at $10.6660. 409,555 shares were traded during trading, a decline of 72% from the average daily volume of 1,438,676 shares. The stock had previously closed at $10.13.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on the company. Wall Street Zen raised Sprout Social from a “buy” rating to a “strong-buy” rating in a research report on Saturday, August 15th. KeyCorp raised their target price on shares of Sprout Social from $6.00 to $7.00 and gave the company an “underweight” rating in a research note on Friday, August 7th. Zacks Research raised shares of Sprout Social from a “hold” rating to a “strong-buy” rating in a research report on Monday, August 10th. Weiss Ratings restated a “sell (e+)” rating on shares of Sprout Social in a report on Friday, July 17th. Finally, Barclays raised their price target on Sprout Social from $9.00 to $12.00 and gave the company an “overweight” rating in a research report on Tuesday, August 11th. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $10.43.

Sprout Social Stock Performance

The firm’s 50 day moving average price is $10.24 and its 200-day moving average price is $8.05. The firm has a market cap of $663.18 million, a price-to-earnings ratio of -21.89 and a beta of 1.01. The company has a debt-to-equity ratio of 0.14, a current ratio of 1.03 and a quick ratio of 1.03.

Sprout Social (NASDAQ:SPT) last released its earnings results on Thursday, August 6th. The company reported $0.26 EPS for the quarter, beating the consensus estimate of $0.16 by $0.10. The firm had revenue of $123.85 million during the quarter, compared to analysts’ expectations of $122.19 million. Sprout Social had a negative net margin of 6.13% and a negative return on equity of 8.80%. 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. On average, analysts anticipate that Sprout Social, Inc. will post -0.02 earnings per share for the current year.

Insider Buying and Selling at Sprout Social

In related news, insider Justyn Howard sold 10,895 shares of Sprout Social stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $11.45, for a total transaction of $124,747.75. Following the sale, the insider directly owned 239,840 shares of the company’s stock, valued at $2,746,168. This trade represents a 4.35% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 9.60% of the company’s stock.

Hedge Funds Weigh In On Sprout Social

Several large investors have recently added to or reduced their stakes in the company. GAMMA Investing LLC increased its position in shares of Sprout Social by 115.8% during the second quarter. GAMMA Investing LLC now owns 6,368 shares of the company’s stock valued at $48,000 after purchasing an additional 3,417 shares during the period. Essential Partners LLC boosted its stake in Sprout Social by 724.9% during the first quarter. Essential Partners LLC now owns 6,550 shares of the company’s stock worth $37,000 after buying an additional 5,756 shares in the last quarter. Commonwealth Financial Services LLC acquired a new stake in Sprout Social during the first quarter worth $58,000. Integrated Wealth Concepts LLC bought a new stake in Sprout Social in the 2nd quarter valued at $84,000. Finally, Versant Capital Management Inc increased its holdings in Sprout Social by 4,977.4% in the 2nd quarter. Versant Capital Management Inc now owns 11,932 shares of the company’s stock valued at $90,000 after buying an additional 11,697 shares during the period.

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.