Sprout Social (NASDAQ:SPT) Upgraded to Strong-Buy at Zacks Research

Key Points

• Zacks Research upgraded Sprout Social from “hold” to “strong buy.” Despite the upgrade, analysts’ overall consensus remained “hold,” with an average price target of $12.17.
• Sprout Social reported quarterly EPS of $0.45, beating the $0.29 consensus estimate, and revenue of $125.15 million, slightly above expectations.
• Insiders sold 51,612 shares worth about $573,757 over the past three months; the article notes that the largest reported sale was made under a pre-arranged trading plan.

Sprout Social (NASDAQ:SPT - Get Free Report) was upgraded by investment analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research report issued on Tuesday, Zacks reports.

Several other brokerages have also recently weighed in on SPT. Morgan Stanley increased their price target on shares of Sprout Social from $10.00 to $11.00 and gave the company an "equal weight" rating in a research report on Thursday, August 13th. Stifel Nicolaus upped their price objective on shares of Sprout Social from $12.00 to $14.00 and gave the company a "buy" rating in a research note on Wednesday, October 14th. Cantor Fitzgerald upped their price objective on shares of Sprout Social from $8.00 to $13.00 and gave the company a "neutral" rating in a research note on Wednesday, November 4th. Needham & Company LLC reiterated a "buy" rating and set a $14.00 target price on shares of Sprout Social in a report on Wednesday, November 4th. Finally, Canaccord Genuity Group raised their target price on Sprout Social from $10.00 to $13.50 and gave the stock a "hold" rating in a research note on Wednesday, November 4th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, four have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat, Sprout Social currently has a consensus rating of "Hold" and an average target price of $12.17.

Sprout Social Price Performance

Shares of Sprout Social stock opened at $11.41 on Tuesday. The company has a debt-to-equity ratio of 0.16, a current ratio of 0.91 and a quick ratio of 0.91. Sprout Social has a one year low of $4.92 and a one year high of $13.35. The business's 50 day simple moving average is $11.08 and its two-hundred day simple moving average is $8.32. The stock has a market capitalization of $691.35 million, a P/E ratio of -25.36, a price-to-earnings-growth ratio of 1.15 and a beta of 0.95.

Sprout Social (NASDAQ:SPT - Get Free Report) last issued its earnings results on Tuesday, November 3rd. The company reported $0.45 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.29 by $0.16. Sprout Social had a negative net margin of 5.42% and a positive return on equity of 1.11%. The firm had revenue of $125.15 million for the quarter, compared to analysts' expectations of $123.83 million. Analysts forecast that Sprout Social will post 0.33 EPS for the current year.

Insider Buying and Selling

In other news, insider Justyn Howard sold 40,000 shares of the firm's stock in a transaction dated 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 directly owned 7,417 shares of the company's stock, valued at approximately $81,735.34. This trade represents a 84.36% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 51,612 shares of company stock valued at $573,757. 9.60% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Sprout Social

Hedge funds and other institutional investors have recently modified their holdings of the stock. Haveli Investment Management LLC purchased a new stake in Sprout Social in the second quarter worth about $16,405,033. Renaissance Technologies LLC grew its holdings in shares of Sprout Social by 79.4% during the 1st quarter. Renaissance Technologies LLC now owns 727,762 shares of the company's stock worth $4,148,000 after acquiring an additional 322,200 shares during the period. Arrowstreet Capital Limited Partnership raised its position in shares of Sprout Social by 46.9% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 442,496 shares of the company's stock worth $2,522,000 after acquiring an additional 141,258 shares in the last quarter. Pale Fire Capital SE bought a new position in shares of Sprout Social in the 1st quarter worth approximately $1,960,000. Finally, Pacer Advisors Inc. bought a new position in shares of Sprout Social in the 1st quarter worth approximately $1,500,000.

Sprout Social Company Profile

Sprout Social, Inc. provides cloud-based software that helps organizations manage their social media presence. Its platform supports activities such as publishing and scheduling content, engaging with audiences, monitoring social conversations, and analyzing social media performance. The company's tools also include social listening, customer care, and employee advocacy capabilities. Sprout Social serves businesses and agencies across a range of industries, helping teams coordinate social media work and gather insights from interactions across social networks.

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