Sprout Social (NASDAQ:SPT) Trading Down 3.1% – Should You Sell?

Sprout Social, Inc. (NASDAQ:SPT)’s stock price was down 3.1% during trading on Tuesday . The company traded as low as $5.53 and last traded at $5.60. Approximately 1,139,384 shares were traded during mid-day trading, a decline of 35% from the average daily volume of 1,750,532 shares. The stock had previously closed at $5.78.

Analyst Ratings Changes

A number of equities analysts recently commented on SPT shares. Needham & Company LLC dropped their price objective on Sprout Social from $32.00 to $14.00 and set a “buy” rating on the stock in a report on Friday, February 27th. Weiss Ratings restated a “sell (e+)” rating on shares of Sprout Social in a report on Thursday, January 22nd. Barclays dropped their price objective on Sprout Social from $26.00 to $13.00 and set an “overweight” rating on the stock in a report on Monday, January 12th. KeyCorp dropped their price objective on Sprout Social from $9.00 to $6.00 and set an “underweight” rating on the stock in a report on Friday, February 27th. 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 analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, Sprout Social has a consensus rating of “Hold” and an average price target of $13.67.

Sprout Social Stock Down 3.1%

The stock has a market cap of $333.54 million, a P/E ratio of -7.57 and a beta of 1.00. The company has a quick ratio of 0.93, a current ratio of 0.93 and a debt-to-equity ratio of 0.20. The business has a 50-day simple moving average of $6.68 and a 200-day simple moving average of $9.40.

Sprout Social (NASDAQ:SPT) last posted its quarterly earnings data on Thursday, February 26th. The company reported $0.20 earnings per share for the quarter, beating 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 analysts’ expectations 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. Analysts expect that Sprout Social, Inc. will post -0.99 EPS for the current year.

Insider Activity at Sprout Social

In other news, insider Justyn Russell Howard sold 40,000 shares of the stock in a transaction that occurred on Wednesday, March 11th. The stock was sold at an average price of $5.96, for a total value of $238,400.00. Following the completion of the sale, the insider directly owned 7,417 shares of the company’s stock, valued at approximately $44,205.32. This 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 can be accessed through this hyperlink. Also, CEO Ryan Paul Barretto acquired 93,984 shares of Sprout Social stock in a transaction dated Friday, January 9th. The stock was acquired at an average cost of $10.67 per share, with a total value of $1,002,809.28. Following the completion of the transaction, the chief executive officer directly owned 875,256 shares of the company’s stock, valued at $9,338,981.52. This trade represents a 12.03% increase in their position. The SEC filing for this purchase provides additional information. Insiders sold 103,855 shares of company stock valued at $827,660 over the last three months. 10.12% of the stock is owned by company insiders.

Institutional Investors Weigh In On Sprout Social

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

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.