Sprinklr (NYSE:CXM) Rating Lowered to Hold at Wall Street Zen

Key Points

• Wall Street Zen downgraded Sprinklr from “Buy” to “Hold.” The broader analyst consensus is also “Hold,” with an average price target of $8.21.
• Sprinklr’s latest earnings slightly beat expectations at $0.11 per share versus $0.10 forecast, but revenue of $213.74 million was marginally below estimates and grew just 0.8% year over year.
• Shares fell 5.3% to $5.91 amid concerns about slowing growth, services-related margin pressure and business transition efforts; insiders have sold 395,880 shares worth about $2.21 million over the past 90 days.

Sprinklr (NYSE:CXM - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued on Saturday, Wall Street Zen reports.

Other research analysts have also issued research reports about the stock. UBS Group set a $7.50 price objective on shares of Sprinklr in a research report on Thursday. Morgan Stanley boosted their target price on shares of Sprinklr from $7.00 to $8.00 and gave the company an "equal weight" rating in a research note on Thursday. DA Davidson increased their price target on Sprinklr from $6.00 to $6.50 and gave the stock a "neutral" rating in a research report on Thursday. Citigroup increased their price objective on shares of Sprinklr from $6.00 to $8.00 and gave the stock a "neutral" rating in a report on Thursday. Finally, Cantor Fitzgerald reissued a "neutral" rating on shares of Sprinklr in a research note on Thursday. Two investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, Sprinklr has a consensus rating of "Hold" and an average price target of $8.21.

Sprinklr Trading Down 5.3%

Shares of Sprinklr stock opened at $5.91 on Friday. The stock has a market capitalization of $1.38 billion, a price-to-earnings ratio of 59.11 and a beta of 0.65. Sprinklr has a 1-year low of $4.72 and a 1-year high of $8.27. The firm has a fifty day simple moving average of $6.38 and a 200-day simple moving average of $5.80.

Sprinklr (NYSE:CXM - Get Free Report) last released its earnings results on Wednesday, September 2nd. The company reported $0.11 earnings per share for the quarter, topping analysts' consensus estimates of $0.10 by $0.01. Sprinklr had a net margin of 2.65% and a return on equity of 7.21%. The firm had revenue of $213.74 million during the quarter, compared to analyst estimates of $214.45 million. During the same quarter in the previous year, the business earned $0.13 EPS. The business's revenue was up .8% on a year-over-year basis. Sprinklr has set its FY 2027 guidance at 0.470-0.470 EPS and its Q3 2027 guidance at 0.110-0.110 EPS. As a group, research analysts predict that Sprinklr will post 0.23 earnings per share for the current year.

Insider Buying and Selling

In related news, CTO Amitabh Misra sold 29,180 shares of the firm's stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $5.30, for a total transaction of $154,654.00. Following the sale, the chief technology officer directly owned 854,779 shares in the company, valued at $4,530,328.70. This trade represents a 3.30% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, General Counsel Jacob Scott sold 71,585 shares of Sprinklr stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $6.97, for a total value of $498,947.45. Following the completion of the sale, the general counsel directly owned 576,827 shares in the company, valued at $4,020,484.19. This represents a 11.04% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 395,880 shares of company stock valued at $2,210,116. 25.18% of the stock is owned by company insiders.

Institutional Trading of Sprinklr

Institutional investors have recently made changes to their positions in the business. Aster Capital Management DIFC Ltd raised its holdings in Sprinklr by 148.9% during the fourth quarter. Aster Capital Management DIFC Ltd now owns 3,243 shares of the company's stock worth $25,000 after acquiring an additional 1,940 shares in the last quarter. Larson Financial Group LLC lifted its holdings in Sprinklr by 24,370.6% during the 3rd quarter. Larson Financial Group LLC now owns 4,160 shares of the company's stock worth $32,000 after purchasing an additional 4,143 shares during the last quarter. Essential Partners LLC boosted its position in shares of Sprinklr by 563.7% in the first quarter. Essential Partners LLC now owns 4,440 shares of the company's stock valued at $27,000 after acquiring an additional 3,771 shares during the period. Summit Securities Group LLC boosted its holdings in Sprinklr by 210.8% in the 1st quarter. Summit Securities Group LLC now owns 4,572 shares of the company's stock valued at $27,000 after purchasing an additional 3,101 shares during the period. Finally, Empowered Funds LLC bought a new stake in shares of Sprinklr in the fourth quarter valued at approximately $38,000. Institutional investors own 40.19% of the company's stock.

Key Sprinklr News

Here are the key news stories impacting Sprinklr this week:

• Positive Sentiment: Sprinklr reported adjusted earnings of $0.11 per share, slightly above the $0.10 consensus estimate. Morgan Stanley raised its price target from $7 to $8 while maintaining an Equal Weight rating, and DA Davidson lifted its target from $6 to $6.50 with a Neutral rating. Sprinklr Q2 earnings results
• Positive Sentiment: Rosenblatt Securities reaffirmed its Buy rating and $8.50 price target, implying substantial potential upside if Sprinklr can stabilize growth and improve profitability. Rosenblatt Sprinklr rating
• Neutral Sentiment: Management’s outlook calls for fiscal 2027 subscription revenue of approximately $782.5 million to $784.5 million. Analysts are focusing on the company’s artificial-intelligence adoption and its transition in services, which could support longer-term growth but have not yet produced a clear acceleration. Sprinklr fiscal 2027 outlook
• Negative Sentiment: Quarterly revenue of $213.74 million fell slightly short of the $214.45 million consensus estimate and increased only 0.8% year over year. Coverage also pointed to slowing growth, margin pressure from services, and the continued transition of the business, which are weighing on investor confidence despite the earnings beat. Sprinklr shares and Q2 revenue miss

About Sprinklr

Sprinklr, Inc NYSE: CXM is a leading enterprise software firm specializing in customer experience management. The company offers a unified, AI-driven platform designed to help organizations engage customers across multiple digital and social channels. By consolidating marketing, advertising, research, care and engagement functions into a single SaaS solution, Sprinklr enables brands to deliver consistent and personalized experiences at scale.

Sprinklr's platform includes modules for social media management, customer service automation, social advertising and market research, supplemented by AI and machine learning capabilities.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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