Sprout Social (NASDAQ:SPT) Trading Up 10.1% – Should You Buy?

Sprout Social, Inc. (NASDAQ:SPT)’s stock price traded up 10.1% during mid-day trading on Monday . The company traded as high as $8.34 and last traded at $8.3320. 234,595 shares were traded during mid-day trading, a decline of 85% from the average daily volume of 1,516,848 shares. The stock had previously closed at $7.57.

Wall Street Analyst Weigh In

A number of research firms have weighed in on SPT. Barclays raised their price target on Sprout Social from $8.00 to $9.00 and gave the company an “overweight” rating in a research note on Monday, May 11th. Weiss Ratings reissued a “sell (e+)” rating on shares of Sprout Social in a report on Friday, July 17th. Four equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $11.88.

Sprout Social Stock Performance

The company has a debt-to-equity ratio of 0.15, a current ratio of 0.95 and a quick ratio of 0.95. The stock has a 50-day moving average price of $7.45 and a 200-day moving average price of $7.20. The company has a market capitalization of $513.64 million, a price-to-earnings ratio of -12.95 and a beta of 0.99.

Sprout Social (NASDAQ:SPT) last posted its earnings results on Thursday, May 7th. The company reported $0.23 earnings per share for the quarter, topping analysts’ consensus estimates of $0.16 by $0.07. Sprout Social had a negative return on equity of 13.90% and a negative net margin of 8.18%.The business had revenue of $121.50 million for the quarter, compared to analyst estimates of $120.33 million. Sprout Social has set its Q2 2026 guidance at 0.150-0.160 EPS and its FY 2026 guidance at 0.880-0.970 EPS. As a group, analysts forecast that Sprout Social, Inc. will post -0.31 earnings per share for the current year.

Insider Activity

In other news, insider Justyn Russell Howard sold 40,000 shares of the firm’s stock in a transaction dated Friday, July 10th. The shares were sold at an average price of $8.28, for a total transaction of $331,200.00. Following the completion of the sale, the insider owned 7,417 shares in the company, valued at approximately $61,412.76. This trade represents a 84.36% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 9.60% of the company’s stock.

Institutional Investors Weigh In On Sprout Social

Several hedge funds have recently bought and sold shares of the stock. Summit Securities Group LLC boosted its holdings in shares of Sprout Social by 399.0% during the fourth quarter. Summit Securities Group LLC now owns 2,520 shares of the company’s stock worth $28,000 after acquiring an additional 2,015 shares during the period. Quadrant Capital Group LLC bought a new position in shares of Sprout Social during the fourth quarter worth approximately $28,000. Essential Partners LLC lifted its holdings in Sprout Social by 724.9% during the 1st quarter. Essential Partners LLC now owns 6,550 shares of the company’s stock worth $37,000 after purchasing an additional 5,756 shares during the last quarter. GAMMA Investing LLC boosted its stake in Sprout Social by 115.8% in the 2nd quarter. GAMMA Investing LLC now owns 6,368 shares of the company’s stock valued at $48,000 after purchasing an additional 3,417 shares during the period. Finally, Quarry LP boosted its stake in Sprout Social by 264.2% in the 3rd quarter. Quarry LP now owns 3,784 shares of the company’s stock valued at $49,000 after purchasing an additional 2,745 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.