Sprout Social (NASDAQ:SPT) Stock Rating Lowered by Zacks Research

Sprout Social (NASDAQ:SPT) was downgraded by Zacks Research from a “strong-buy” rating to a “hold” rating in a note issued to investors on Monday, Zacks reports.

SPT has been the topic of several other reports. Wall Street Zen upgraded shares of Sprout Social from a “buy” rating to a “strong-buy” rating in a research note on Saturday, August 15th. KeyCorp boosted their price target on Sprout Social from $6.00 to $7.00 and gave the company an “underweight” rating in a research report on Friday, August 7th. Morgan Stanley boosted their target price on Sprout Social from $10.00 to $11.00 and gave the company an “equal weight” rating in a report on Thursday, August 13th. Barclays increased their price target on Sprout Social from $9.00 to $12.00 and gave the stock an “overweight” rating in a report on Tuesday, August 11th. Finally, Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Sprout Social in a report on Friday, July 17th. Three investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $10.43.

Sprout Social Price Performance

NASDAQ:SPT opened at $11.20 on Monday. Sprout Social has a 12 month low of $4.92 and a 12 month high of $12.06. The firm has a market cap of $678.61 million, a P/E ratio of -22.40 and a beta of 1.01. The stock has a 50 day moving average of $10.39 and a two-hundred day moving average of $8.16. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.14.

Sprout Social (NASDAQ:SPT) last released its quarterly earnings data on Thursday, August 6th. The company reported $0.26 earnings per share (EPS) for the quarter, topping the consensus estimate 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 during the quarter, compared to analysts’ expectations 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. On average, analysts expect that Sprout Social will post -0.02 earnings per share for the current fiscal year.

Insider Transactions at Sprout Social

In related news, insider Justyn Howard sold 40,000 shares of the firm’s 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 trade represents a 84.36% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 51,612 shares of company stock valued at $573,757. 9.60% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Sprout Social

A number of large investors have recently modified their holdings of the stock. GAMMA Investing LLC boosted its stake in Sprout Social by 115.8% during the 2nd quarter. GAMMA Investing LLC now owns 6,368 shares of the company’s stock valued at $48,000 after acquiring an additional 3,417 shares during the last quarter. Essential Partners LLC grew its holdings in shares of Sprout Social by 724.9% during the first quarter. Essential Partners LLC now owns 6,550 shares of the company’s stock valued at $37,000 after purchasing an additional 5,756 shares during the last quarter. Commonwealth Financial Services LLC acquired a new position in Sprout Social during the 1st quarter valued at approximately $58,000. Integrated Wealth Concepts LLC acquired a new stake in Sprout Social in the second quarter worth $84,000. Finally, Versant Capital Management Inc boosted its stake in Sprout Social by 4,977.4% during the 2nd quarter. Versant Capital Management Inc now owns 11,932 shares of the company’s stock valued at $90,000 after purchasing an additional 11,697 shares during the period.

Sprout Social Company Profile

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.