Canaccord Genuity Group Issues Pessimistic Forecast for Sprout Social (NASDAQ:SPT) Stock Price

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 price target lowered by Canaccord Genuity Group from $30.00 to $25.00 in a research note issued on Thursday,Benzinga reports. The firm currently has a "buy" rating on the stock. Canaccord Genuity Group's price target points to a potential upside of 69.61% from the company's current price.

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

Sprout Social Price Performance

Sprout Social stock traded down $1.32 during midday trading on Thursday, hitting $14.74. The company's stock had a trading volume of 1,521,731 shares, compared to its average volume of 685,834. The company has a quick ratio of 0.97, a current ratio of 0.97 and a debt-to-equity ratio of 0.11. The stock's 50-day moving average price is $19.95 and its 200-day moving average price is $23.39. Sprout Social has a 12 month low of $14.59 and a 12 month high of $36.30. The company has a market capitalization of $857.51 million, a PE ratio of -14.17 and a beta of 0.99.

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, topping the consensus estimate of $0.15 by $0.03. The firm had revenue of $111.78 million for the quarter, compared to the consensus estimate of $110.93 million. Sprout Social had a negative return on equity of 31.03% and a negative net margin of 14.25%. The business's revenue for the quarter was up 12.5% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.09 EPS. Analysts anticipate that Sprout Social will post -0.99 earnings per share for the current fiscal year.

Insider Transactions at Sprout Social

In other news, insider Justyn Russell Howard sold 40,000 shares of the company's stock in a transaction on Tuesday, July 8th. The stock was sold at an average price of $21.12, for a total transaction of $844,800.00. Following the transaction, the insider owned 7,417 shares of the company's stock, valued at $156,647.04. This represents a 84.36% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Ryan Paul Barretto sold 16,800 shares of the company's stock in a transaction on Tuesday, July 8th. The shares were sold at an average price of $21.16, for a total value of $355,488.00. Following the transaction, the chief executive officer directly owned 119,775 shares in the company, valued at $2,534,439. This trade represents a 12.30% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 112,375 shares of company stock worth $2,389,535. Insiders own 10.12% of the company's stock.

Hedge Funds Weigh In On Sprout Social

Several hedge funds have recently added to or reduced their stakes in SPT. ArrowMark Colorado Holdings LLC grew its holdings in shares of Sprout Social by 380.7% during the fourth quarter. ArrowMark Colorado Holdings LLC now owns 1,772,219 shares of the company's stock worth $54,425,000 after buying an additional 1,403,549 shares in the last quarter. Nuveen LLC bought a new position in shares of Sprout Social during the first quarter worth about $13,131,000. Dorsey Asset Management LLC grew its holdings in shares of Sprout Social by 16.7% during the fourth quarter. Dorsey Asset Management LLC now owns 2,306,149 shares of the company's stock worth $70,822,000 after buying an additional 330,155 shares in the last quarter. Cadian Capital Management LP grew its holdings in shares of Sprout Social by 6.1% during the fourth quarter. Cadian Capital Management LP now owns 4,548,323 shares of the company's stock worth $139,679,000 after buying an additional 263,267 shares in the last quarter. Finally, Federated Hermes Inc. bought a new position in shares of Sprout Social during the first quarter worth about $5,354,000.

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.

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