Sprout Social (NASDAQ:SPT) Trading 4.7% Higher – Should You Buy?

Sprout Social, Inc. (NASDAQ:SPT)’s stock price shot up 4.7% during mid-day trading on Tuesday . The stock traded as high as $10.06 and last traded at $9.9950. 204,250 shares changed hands during mid-day trading, a decline of 86% from the average session volume of 1,497,869 shares. The stock had previously closed at $9.55.

Analyst Ratings Changes

A number of analysts recently commented on the company. Barclays increased their price objective on Sprout Social from $9.00 to $12.00 and gave the company an “overweight” rating in a research note on Tuesday, August 11th. Wall Street Zen upgraded shares of Sprout Social from a “buy” rating to a “strong-buy” rating in a report on Saturday. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Sprout Social in a research note on Friday, July 17th. Morgan Stanley lifted their price target on shares of Sprout Social from $10.00 to $11.00 and gave the stock an “equal weight” rating in a report on Thursday, August 13th. Finally, Zacks Research raised shares of Sprout Social from a “hold” rating to a “strong-buy” rating in a research report on Monday, August 10th. 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. Based on data from MarketBeat.com, Sprout Social has a consensus rating of “Hold” and an average price target of $10.43.

Sprout Social Stock Performance

The firm has a market cap of $602.59 million, a PE ratio of -19.89 and a beta of 0.97. The stock has a 50-day moving average price of $8.11 and a 200 day moving average price of $7.10. The company has a debt-to-equity ratio of 0.14, a current ratio of 1.03 and a quick ratio of 1.03.

Sprout Social (NASDAQ:SPT) last released its earnings results on Thursday, August 6th. The company reported $0.26 earnings per share for the quarter, topping the consensus estimate of $0.16 by $0.10. Sprout Social had a negative return on equity of 8.80% and a negative net margin of 6.13%.The firm had revenue of $123.85 million for the quarter, compared to the consensus estimate of $122.19 million. 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. Research analysts forecast that Sprout Social, Inc. will post -0.25 earnings per share for the current year.

Insider Buying and Selling at Sprout Social

In related news, insider Justyn Russell Howard sold 40,000 shares of the firm’s stock in a transaction that occurred on Friday, July 10th. The shares were sold at an average price of $8.28, for a total value of $331,200.00. Following the sale, the insider directly owned 7,417 shares of the company’s stock, valued at approximately $61,412.76. This trade 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 is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 9.60% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Sprout Social

Several institutional investors and hedge funds have recently bought and sold shares of SPT. Haveli Investment Management LLC purchased a new position in Sprout Social during the second quarter worth approximately $16,405,033,000. LB Partners LLC increased its holdings in shares of Sprout Social by 144.7% during the 1st quarter. LB Partners LLC now owns 1,510,979 shares of the company’s stock worth $8,613,000 after buying an additional 893,502 shares during the last quarter. Cubist Systematic Strategies LLC increased its holdings in shares of Sprout Social by 739.6% during the 2nd quarter. Cubist Systematic Strategies LLC now owns 714,089 shares of the company’s stock worth $14,932,000 after buying an additional 629,033 shares during the last quarter. Canada Pension Plan Investment Board raised its position in shares of Sprout Social by 20,382.0% in the 2nd quarter. Canada Pension Plan Investment Board now owns 471,087 shares of the company’s stock worth $9,850,000 after buying an additional 468,787 shares during the period. Finally, Y Intercept Hong Kong Ltd raised its position in shares of Sprout Social by 252.2% in the 1st quarter. Y Intercept Hong Kong Ltd now owns 626,762 shares of the company’s stock worth $3,573,000 after buying an additional 448,783 shares during the period.

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.