Sprout Social (NASDAQ:SPT) Price Target Cut to $25.00 by Analysts at Canaccord Genuity Group

Key Points

• Canaccord Genuity Group has lowered Sprout Social's price target from $30.00 to $25.00, while maintaining a "buy" rating, indicating a potential upside of 69.61% from the current stock price.
• Other firms like Goldman Sachs and Morgan Stanley have also reduced their price targets to $21.00 and $22.00 respectively, highlighting a generally cautious outlook on Sprout Social.
• Despite recent challenges, Sprout Social reported a 12.5% increase in revenue year-over-year for the latest quarter, surpassing analysts' earnings and revenue estimates.

Sprout Social (NASDAQ:SPT - Get Free Report) had its target price lowered by stock analysts at Canaccord Genuity Group from $30.00 to $25.00 in a report released on Thursday,Benzinga reports. The firm currently has a "buy" rating on the stock. Canaccord Genuity Group's price target suggests a potential upside of 79.48% from the stock's previous close.

Other analysts have also issued reports about the company. Cantor Fitzgerald reissued a "neutral" rating and set a $24.00 target price on shares of Sprout Social in a report on Tuesday, June 3rd. Oppenheimer cut their target price on Sprout Social from $32.00 to $23.00 and set an "outperform" rating for the company in a research note on Thursday. The Goldman Sachs Group cut their price objective on Sprout Social from $24.00 to $21.00 and set a "neutral" rating on the stock in a research report on Thursday. Needham & Company LLC reissued a "buy" rating and issued a $32.00 target price on shares of Sprout Social in a report on Wednesday, May 28th. Finally, Morgan Stanley cut their price target on Sprout Social from $30.00 to $22.00 and set an "equal weight" rating for the company in a report on Wednesday, April 16th. One research analyst has rated the stock with a sell rating, five have issued a hold rating and six have assigned a buy rating to the stock. According to MarketBeat, the stock has an average rating of "Hold" and an average price target of $27.42.

Sprout Social Stock Down 0.1%

Shares of Sprout Social stock traded down $0.01 during trading hours on Thursday, hitting $13.93. The company had a trading volume of 109,068 shares, compared to its average volume of 685,042. Sprout Social has a twelve month low of $13.68 and a twelve month high of $36.30. The company has a market cap of $810.33 million, a P/E ratio of -14.63 and a beta of 0.99. The company has a debt-to-equity ratio of 0.08, a current ratio of 1.00 and a quick ratio of 1.00. The company's 50-day moving average is $19.66 and its two-hundred day moving average is $22.99.

Sprout Social (NASDAQ:SPT - Get Free Report) last posted its quarterly earnings data on Wednesday, August 6th. The company reported $0.18 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.15 by $0.03. The company had revenue of $111.78 million for the quarter, compared to analyst estimates of $110.93 million. Sprout Social had a negative net margin of 12.70% and a negative return on equity of 25.95%. The business's quarterly revenue was up 12.5% on a year-over-year basis. During the same quarter last year, the firm posted $0.09 earnings per share. Analysts anticipate that Sprout Social will post -0.99 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Ryan Paul Barretto sold 16,800 shares of Sprout Social stock in a transaction on Tuesday, July 8th. The stock was sold at an average price of $21.16, for a total transaction of $355,488.00. Following the sale, the chief executive officer directly owned 119,775 shares in the company, valued at $2,534,439. The trade was a 12.30% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Karen Walker sold 5,000 shares of the company's stock in a transaction that occurred on Monday, July 14th. The stock was sold at an average price of $19.05, for a total transaction of $95,250.00. Following the completion of the transaction, the director owned 28,963 shares in the company, valued at approximately $551,745.15. This trade represents a 14.72% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 112,375 shares of company stock worth $2,389,535 over the last ninety days. Corporate insiders own 10.12% of the company's stock.

Hedge Funds Weigh In On Sprout Social

Hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. lifted its stake in Sprout Social by 0.3% in the 1st quarter. Vanguard Group Inc. now owns 5,900,938 shares of the company's stock valued at $129,762,000 after buying an additional 14,771 shares in the last quarter. Cadian Capital Management LP boosted its stake in Sprout Social by 6.1% in the 4th quarter. Cadian Capital Management LP now owns 4,548,323 shares of the company's stock worth $139,679,000 after purchasing an additional 263,267 shares during the period. Jennison Associates LLC lifted its stake in shares of Sprout Social by 8.7% in the 2nd quarter. Jennison Associates LLC now owns 2,392,450 shares of the company's stock valued at $50,026,000 after purchasing an additional 192,007 shares during the last quarter. Dorsey Asset Management LLC increased its holdings in shares of Sprout Social by 16.7% during the 4th quarter. Dorsey Asset Management LLC now owns 2,306,149 shares of the company's stock worth $70,822,000 after purchasing an additional 330,155 shares during the period. Finally, ArrowMark Colorado Holdings LLC boosted its stake in Sprout Social by 380.7% in the fourth quarter. ArrowMark Colorado Holdings LLC now owns 1,772,219 shares of the company's stock worth $54,425,000 after purchasing an additional 1,403,549 shares in the last quarter.

Sprout Social Company Profile

Sprout Social, Inc designs, develops, and operates a web-based social media management platform in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company provides cloud software for social messaging, data and workflows in a unified system of record, intelligence, and action.