Sprout Social (NASDAQ:SPT) Sets New 1-Year Low – What’s Next?

Sprout Social, Inc. (NASDAQ:SPT)’s stock price reached a new 52-week low during mid-day trading on Thursday . The stock traded as low as $8.56 and last traded at $8.68, with a volume of 545858 shares. The stock had previously closed at $9.31.

Analysts Set New Price Targets

SPT has been the topic of several recent analyst reports. Canaccord Genuity Group reduced their target price on Sprout Social from $25.00 to $16.00 and set a “buy” rating on the stock in a report on Friday, November 7th. Barclays cut their price objective on shares of Sprout Social from $26.00 to $13.00 and set an “overweight” rating on the stock in a research report on Monday, January 12th. Morgan Stanley dropped their target price on Sprout Social from $17.00 to $14.00 and set an “equal weight” rating on the stock in a report on Thursday, November 13th. Finally, Weiss Ratings reiterated a “sell (e+)” rating on shares of Sprout Social in a research note on Thursday, January 22nd. Six investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $24.64.

Sprout Social Stock Performance

The firm has a market capitalization of $535.66 million, a price-to-earnings ratio of -11.17 and a beta of 0.81. 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 stock’s 50-day moving average is $10.42 and its 200-day moving average is $12.55.

Sprout Social (NASDAQ:SPT) last announced its quarterly earnings results on Wednesday, November 5th. The company reported $0.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.16 by $0.07. Sprout Social had a negative net margin of 10.59% and a negative return on equity of 18.93%. The company had revenue of $115.59 million during the quarter, compared to the consensus estimate of $114.86 million. During the same period in the prior year, the business earned $0.13 earnings per share. The company’s revenue for the quarter was up 12.7% compared to the same quarter last year. 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. On average, analysts predict that Sprout Social, Inc. will post -0.99 EPS for the current fiscal year.

Insider Activity

In related news, insider Justyn Russell Howard sold 40,000 shares of the firm’s stock in a transaction that occurred on Friday, January 9th. The shares were sold at an average price of $10.70, for a total value of $428,000.00. Following the completion of the transaction, the insider owned 7,417 shares in the company, valued at $79,361.90. This trade represents a 84.36% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Ryan Paul Barretto purchased 93,984 shares of the business’s stock in a transaction dated Friday, January 9th. The shares were acquired at an average price of $10.67 per share, for a total transaction of $1,002,809.28. Following the acquisition, the chief executive officer 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. 10.12% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Sprout Social

A number of institutional investors have recently made changes to their positions in the stock. Nordea Investment Management AB acquired a new position in shares of Sprout Social during the 3rd quarter valued at $1,702,000. Y Intercept Hong Kong Ltd increased its stake in Sprout Social by 121.5% in the third quarter. Y Intercept Hong Kong Ltd now owns 446,403 shares of the company’s stock valued at $5,768,000 after purchasing an additional 244,874 shares in the last quarter. LB Partners LLC acquired a new position in shares of Sprout Social during the third quarter valued at about $2,455,000. Fox Run Management L.L.C. bought a new position in shares of Sprout Social during the 2nd quarter worth about $880,000. Finally, Segall Bryant & Hamill LLC grew its stake in shares of Sprout Social by 20.4% in the 2nd quarter. Segall Bryant & Hamill LLC now owns 237,415 shares of the company’s stock valued at $4,964,000 after buying an additional 40,223 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.