Sprout Social (NASDAQ:SPT) Trading Down 6.8% – What’s Next?

Shares of Sprout Social, Inc. (NASDAQ:SPT) were down 6.8% on Friday . The company traded as low as $10.50 and last traded at $10.5050. Approximately 180,194 shares changed hands during mid-day trading, a decline of 81% from the average daily volume of 937,825 shares. The stock had previously closed at $11.27.

Wall Street Analyst Weigh In

Several research analysts have commented on SPT shares. Weiss Ratings restated a “sell (e+)” rating on shares of Sprout Social in a research report on Wednesday, October 8th. Morgan Stanley decreased their price objective on Sprout Social from $17.00 to $14.00 and set an “equal weight” rating for the company in a report on Thursday, November 13th. Finally, Canaccord Genuity Group cut their target price on Sprout Social from $25.00 to $16.00 and set a “buy” rating on the stock in a research note on Friday, November 7th. Six equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $25.82.

Sprout Social Stock Down 8.2%

The firm’s fifty day moving average price is $10.54 and its 200-day moving average price is $13.97. The company has a debt-to-equity ratio of 0.23, a current ratio of 0.89 and a quick ratio of 0.89. The firm has a market capitalization of $612.62 million, a P/E ratio of -12.78 and a beta of 0.81.

Sprout Social (NASDAQ:SPT) last announced its earnings results on Wednesday, November 5th. The company reported $0.23 EPS for the quarter, topping the consensus estimate of $0.16 by $0.07. The firm had revenue of $115.59 million for the quarter, compared to analysts’ expectations of $114.86 million. Sprout Social had a negative return on equity of 18.93% and a negative net margin of 10.59%.The firm’s quarterly revenue was up 12.7% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.13 earnings per share. 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 forecast that Sprout Social, Inc. will post -0.99 earnings per share for the current year.

Insider Activity

In other news, Director Aaron Edward Frederick Rankin bought 90,661 shares of the stock in a transaction that occurred on Wednesday, December 17th. The shares were purchased 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 directly owned 114,969 shares in the company, valued at approximately $1,280,754.66. The trade was a 372.97% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Justyn Russell Howard sold 20,000 shares of the company’s stock in a transaction dated Tuesday, November 4th. The shares were sold at an average price of $10.22, for a total transaction of $204,400.00. Following the completion of the sale, the insider directly owned 7,417 shares of the company’s stock, valued at $75,801.74. The trade was a 72.95% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 10.12% of the company’s stock.

Institutional Trading of Sprout Social

Large investors have recently added to or reduced their stakes in the business. Fox Run Management L.L.C. purchased a new position in Sprout Social during the 2nd quarter valued at about $880,000. Segall Bryant & Hamill LLC boosted its holdings in shares of Sprout Social by 20.4% during the second quarter. Segall Bryant & Hamill LLC now owns 237,415 shares of the company’s stock worth $4,964,000 after purchasing an additional 40,223 shares during the period. CenterBook Partners LP grew its position in Sprout Social by 254.4% during the second quarter. CenterBook Partners LP now owns 118,840 shares of the company’s stock valued at $2,485,000 after purchasing an additional 85,309 shares in the last quarter. Magnetar Financial LLC grew its position in Sprout Social by 357.9% during the second quarter. Magnetar Financial LLC now owns 69,813 shares of the company’s stock valued at $1,460,000 after purchasing an additional 54,567 shares in the last quarter. Finally, Jennison Associates LLC increased its stake in Sprout Social by 8.7% in the 2nd quarter. Jennison Associates LLC now owns 2,392,450 shares of the company’s stock valued at $50,026,000 after buying an additional 192,007 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.