Sprout Social (NASDAQ:SPT) Shares Down 6.6% – Here’s Why

Sprout Social, Inc. (NASDAQ:SPT)’s share price dropped 6.6% on Friday . The company traded as low as $9.60 and last traded at $9.4660. Approximately 293,358 shares changed hands during mid-day trading, a decline of 71% from the average daily volume of 1,023,872 shares. The stock had previously closed at $10.14.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on SPT. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Sprout Social in a research report on Wednesday, October 8th. Barclays decreased their price objective on shares of Sprout Social from $26.00 to $13.00 and set an “overweight” rating for the company in a research report on Monday, January 12th. Morgan Stanley lowered their target price on shares of Sprout Social from $17.00 to $14.00 and set an “equal weight” rating for the company in a research note on Thursday, November 13th. Finally, Canaccord Genuity Group cut their price target on shares of 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 investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $24.64.

Sprout Social Trading Down 7.8%

The company has a current ratio of 0.89, a quick ratio of 0.89 and a debt-to-equity ratio of 0.23. The firm has a market cap of $553.43 million, a price-to-earnings ratio of -11.54 and a beta of 0.81. The company has a fifty day moving average price of $10.54 and a 200-day moving average price of $13.27.

Sprout Social (NASDAQ:SPT) last announced its quarterly earnings results on Wednesday, November 5th. The company reported $0.23 earnings per share for the quarter, beating the consensus estimate of $0.16 by $0.07. The company had revenue of $115.59 million during 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%.Sprout Social’s quarterly revenue was up 12.7% on a year-over-year basis. During the same period last year, the business 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, research analysts expect that Sprout Social, Inc. will post -0.99 EPS for the current year.

Insiders Place Their Bets

In other Sprout Social news, CEO Ryan Paul Barretto purchased 93,984 shares of the business’s stock in a transaction that occurred on Friday, January 9th. The stock was purchased at an average price of $10.67 per share, for a total transaction of $1,002,809.28. Following the purchase, the chief executive officer directly owned 875,256 shares in the company, valued at approximately $9,338,981.52. This trade represents a 12.03% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Justyn Russell Howard sold 40,000 shares of the company’s stock in a transaction dated Friday, January 9th. The stock was sold at an average price of $10.70, for a total value of $428,000.00. Following the completion of the transaction, the insider directly owned 7,417 shares of the company’s stock, valued at $79,361.90. The trade was a 84.36% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 10.12% of the company’s stock.

Institutional Trading of Sprout Social

Institutional investors and hedge funds have recently made changes to their positions in the business. First Horizon Advisors Inc. lifted its position in shares of Sprout Social by 78.9% during the 2nd quarter. First Horizon Advisors Inc. now owns 1,531 shares of the company’s stock valued at $32,000 after buying an additional 675 shares in the last quarter. Diversified Trust Co raised its position in Sprout Social by 6.1% during the third quarter. Diversified Trust Co now owns 17,982 shares of the company’s stock worth $232,000 after acquiring an additional 1,040 shares during the period. Rhumbline Advisers lifted its holdings in Sprout Social by 1.6% during the second quarter. Rhumbline Advisers now owns 78,240 shares of the company’s stock valued at $1,636,000 after purchasing an additional 1,264 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in shares of Sprout Social by 2.4% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 53,127 shares of the company’s stock valued at $1,168,000 after purchasing an additional 1,265 shares during the period. Finally, Tower Research Capital LLC TRC increased its stake in shares of Sprout Social by 55.5% during the second quarter. Tower Research Capital LLC TRC now owns 5,496 shares of the company’s stock worth $115,000 after purchasing an additional 1,962 shares in the last quarter.

Sprout Social Company Profile

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.