Sprout Social (NASDAQ:SPT) Stock Price Expected to Rise, KeyCorp Analyst Says

Key Points

• KeyCorp raised its Sprout Social price target from $7 to $10 but maintained an “underweight” rating, with its target implying 16.18% downside from the prior close.
• Analyst views remain mixed: Sprout Social has a consensus “hold” rating and an average price target of $11.44.
• Quarterly earnings and revenue topped expectations, but the company’s next-quarter revenue outlook was described as slightly below forecasts, potentially tempering the strong results.

Sprout Social (NASDAQ:SPT - Get Free Report) had its target price lifted by research analysts at KeyCorp from $7.00 to $10.00 in a research report issued to clients and investors on Wednesday, Benzinga reports. The firm presently has an "underweight" rating on the stock. KeyCorp's price target suggests a potential downside of 16.18% from the stock's previous close.

A number of other research firms also recently commented on SPT. Cantor Fitzgerald increased their target price on shares of Sprout Social from $8.00 to $13.00 and gave the company a "neutral" rating in a research report on Wednesday. Zacks Research cut shares of Sprout Social from a "strong-buy" rating to a "hold" rating in a research report on Monday, October 12th. Barclays upped their price objective on shares of Sprout Social from $9.00 to $12.00 and gave the company an "overweight" rating in a research note on Tuesday, August 11th. Stifel Nicolaus raised their price objective on Sprout Social from $12.00 to $14.00 and gave the stock a "buy" rating in a report on Wednesday, October 14th. Finally, Needham & Company LLC reiterated a "buy" rating on shares of Sprout Social in a research report on Wednesday. Four research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, Sprout Social has a consensus rating of "Hold" and an average price target of $11.44.

Sprout Social Stock Performance

Shares of SPT opened at $11.93 on Wednesday. The stock has a 50 day moving average price of $11.09 and a 200 day moving average price of $8.28. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.14. The company has a market capitalization of $722.84 million, a price-to-earnings ratio of -23.86 and a beta of 0.95. Sprout Social has a 52-week low of $4.92 and a 52-week high of $13.35.

Sprout Social (NASDAQ:SPT - Get Free Report) last released its quarterly earnings data on Tuesday, November 3rd. The company reported $0.45 earnings per share for the quarter, topping analysts' consensus estimates of $0.29 by $0.16. The company had revenue of $125.15 million for the quarter, compared to analysts' expectations of $123.83 million. Sprout Social had a negative net margin of 6.13% and a negative return on equity of 8.80%. Research analysts predict that Sprout Social will post -0.02 EPS for the current fiscal year.

Insider Activity at Sprout Social

In related news, insider Justyn Howard sold 40,000 shares of the company's stock in a transaction on Friday, October 9th. The shares were sold at an average price of $11.02, for a total value of $440,800.00. Following the completion of the sale, the insider owned 7,417 shares in the company, valued at $81,735.34. This represents a 84.36% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 51,612 shares of company stock valued at $573,757. Insiders own 9.60% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the business. Pale Fire Capital SE acquired a new stake in Sprout Social during the 1st quarter worth approximately $1,960,000. Arrowstreet Capital Limited Partnership increased its holdings in shares of Sprout Social by 46.9% in the first quarter. Arrowstreet Capital Limited Partnership now owns 442,496 shares of the company's stock valued at $2,522,000 after purchasing an additional 141,258 shares during the period. Pacer Advisors Inc. acquired a new position in shares of Sprout Social in the first quarter valued at approximately $1,500,000. Bank of New York Mellon Corp acquired a new position in shares of Sprout Social in the second quarter valued at approximately $1,658,000. Finally, Haveli Investment Management LLC purchased a new stake in shares of Sprout Social during the second quarter worth approximately $16,405,033.

Key Stories Impacting Sprout Social

Here are the key news stories impacting Sprout Social this week:

• Positive Sentiment: Q3 adjusted earnings were $0.45 per share, above analyst expectations of about $0.29–$0.30 and up from $0.23 a year earlier. Revenue of $125.15 million also topped the $123.83 million consensus. Sprout Social additionally reported record non-GAAP operating income of $26.3 million, a 21% margin. Sprout Social Announces Third Quarter 2026 Financial Results
• Negative Sentiment: Despite the quarterly beat, the company’s revenue outlook for the next quarter was described as slightly below analyst expectations. That softer forward signal could temper the positive impact of the results. Sprout Social’s Q3 2026 Results and Guidance
• Negative Sentiment: A shareholder-law firm said it is investigating potential fiduciary-duty claims after a federal court declined to dismiss a securities-fraud class action against the company. The ongoing litigation adds legal and reputational uncertainty, though the alert itself is not a finding of wrongdoing. Shareholder Alert Regarding Sprout Social

About Sprout Social

Sprout Social, Inc is a software company that provides a cloud-based social media management platform for businesses and organizations. Its platform helps customers manage social media publishing, engagement, customer care, analytics, listening and employee advocacy from a centralized environment.

The company's products are designed to help marketing, communications, sales and customer service teams plan and publish content, monitor conversations, respond to audiences, evaluate social media performance and gain insights from online activity.

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