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

Shares of Sprout Social, Inc. (NASDAQ:SPT) were down 6% on Tuesday . The company traded as low as $10.71 and last traded at $10.68. 262,383 shares traded hands during trading, a decline of 82% from the average daily volume of 1,487,569 shares. The stock had previously closed at $11.36.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on the company. Morgan Stanley raised their price objective on Sprout Social from $10.00 to $11.00 and gave the company an “equal weight” rating in a research note on Thursday, August 13th. Barclays increased their target price on Sprout Social from $9.00 to $12.00 and gave the stock an “overweight” rating in a report on Tuesday, August 11th. Weiss Ratings reissued a “sell (e+)” rating on shares of Sprout Social in a research report on Friday, July 17th. KeyCorp boosted their price target on shares of Sprout Social from $6.00 to $7.00 and gave the company an “underweight” rating in a research note on Friday, August 7th. Finally, Zacks Research upgraded shares of Sprout Social from a “hold” rating to a “strong-buy” rating in a 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 assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $10.43.

Sprout Social Price Performance

The stock has a market capitalization of $613.78 million, a P/E ratio of -20.26 and a beta of 0.95. The business has a fifty day simple moving average of $9.37 and a 200 day simple moving average of $7.45. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.14.

Sprout Social (NASDAQ:SPT) last posted its earnings results on Thursday, August 6th. The company reported $0.26 earnings per share for the quarter, beating analysts’ consensus estimates 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 company had revenue of $123.85 million for the quarter, compared to analyst estimates 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. On average, analysts expect that Sprout Social, Inc. will post -0.02 earnings per share for the current year.

Insider Transactions at Sprout Social

In other news, insider Justyn Howard sold 40,000 shares of the company’s stock in a transaction 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 completion of the sale, the insider owned 7,417 shares in the company, valued at $61,412.76. This represents a 84.36% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 51,612 shares of company stock worth $464,157. 9.60% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in Sprout Social by 2.4% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 53,127 shares of the company’s stock worth $1,168,000 after purchasing an additional 1,265 shares in the last quarter. Russell Investments Group Ltd. increased its position in shares of Sprout Social by 39.1% during the 4th quarter. Russell Investments Group Ltd. now owns 6,235 shares of the company’s stock valued at $70,000 after purchasing an additional 1,752 shares during the last quarter. Tower Research Capital LLC TRC raised its stake in shares of Sprout Social by 55.5% during the 2nd 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 during the period. Summit Securities Group LLC raised its stake in shares of Sprout Social by 399.0% during the 4th quarter. Summit Securities Group LLC now owns 2,520 shares of the company’s stock worth $28,000 after purchasing an additional 2,015 shares during the period. Finally, Headlands Technologies LLC boosted its holdings in shares of Sprout Social by 13.0% in the 2nd quarter. Headlands Technologies LLC now owns 18,573 shares of the company’s stock worth $388,000 after buying an additional 2,131 shares during the last quarter.

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.