Sprout Social (NASDAQ:SPT) Shares Down 6% – Here’s What Happened

by · The Cerbat Gem

Sprout Social, Inc. (NASDAQ:SPT – Get Free Report) was down 6% during mid-day trading on Tuesday . The company traded as low as $10.71 and last traded at $10.68. Approximately 262,383 shares were traded during mid-day trading, a decline of 82% from the average session volume of 1,487,569 shares. The stock had previously closed at $11.36.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on SPT. Wall Street Zen upgraded shares of Sprout Social from a “buy” rating to a “strong-buy” rating in a report on Saturday, August 15th. Zacks Research raised shares of Sprout Social from a “hold” rating to a “strong-buy” rating in a research report on Monday, August 10th. Morgan Stanley increased their price objective on shares of Sprout Social from $10.00 to $11.00 and gave the stock an “equal weight” rating in a research note on Thursday, August 13th. Weiss Ratings restated a “sell (e+)” rating on shares of Sprout Social in a report on Friday, July 17th. Finally, KeyCorp lifted their target price on Sprout Social from $6.00 to $7.00 and gave the company an “underweight” rating in a research report on Friday, August 7th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, three have given a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $10.43.

Check Out Our Latest Stock Report on Sprout Social

Sprout Social Stock Performance

The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.14. The stock’s fifty day moving average is $9.27 and its two-hundred day moving average is $7.41. The firm has a market capitalization of $637.53 million, a price-to-earnings ratio of -21.05 and a beta of 0.95.

Sprout Social (NASDAQ:SPT – Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The company reported $0.26 EPS for the quarter, beating analysts’ consensus estimates of $0.16 by $0.10. The company had revenue of $123.85 million during the quarter, compared to the consensus estimate 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 predict that Sprout Social, Inc. will post -0.02 earnings per share for the current year.

Insider Buying and Selling

In other Sprout Social news, insider Justyn Howard sold 40,000 shares of the business’s stock in a transaction that occurred on Friday, July 10th. The stock was sold at an average price of $8.28, for a total transaction of $331,200.00. Following the transaction, the insider owned 7,417 shares of the company’s stock, valued at $61,412.76. The trade was a 84.36% decrease in their ownership of the stock. The sale 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 sold a total of 51,612 shares of company stock worth $464,157 in the last three months. Company insiders own 9.60% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in SPT. Vanguard Group Inc. raised its stake 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 acquiring an additional 274,527 shares during the period. Pale Fire Capital SE acquired a new position in shares of Sprout Social in the first quarter valued at $1,960,000. Arrowstreet Capital Limited Partnership increased its holdings in shares of Sprout Social by 46.9% in the first quarter. Arrowstreet Capital Limited Partnership now owns 442,496 shares of the company’s stock valued at $2,522,000 after purchasing an additional 141,258 shares during the last quarter. Nano Cap New Millennium Growth Fund L P bought a new position in shares of Sprout Social in the fourth quarter valued at about $2,564,000. Finally, Brighton Jones LLC raised its position in shares of Sprout Social by 391.7% in the fourth quarter. Brighton Jones LLC now owns 35,985 shares of the company’s stock valued at $1,105,000 after purchasing an additional 28,667 shares during the period.

About Sprout Social

(Get Free Report)

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.

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