Arrowstreet Capital Limited Partnership Purchases 141,258 Shares of Sprout Social, Inc. $SPT

Key Points

• Arrowstreet Capital increased its Sprout Social stake by 46.9%, purchasing 141,258 shares to hold 442,496 shares worth approximately $2.52 million. Other institutional investors, including Vanguard and LB Partners, also expanded their positions.
• Sprout Social reported quarterly EPS of $0.23, beating estimates of $0.16, while revenue of $121.5 million topped expectations. Despite the earnings beat, the company posted an 8.18% negative net margin and analysts expect a full-year loss.
• SPT shares opened at $8.75, up 2.3%, while analysts’ average price target stands at $11.88 with an overall “Hold” rating. An insider separately sold 40,000 shares under a pre-arranged trading plan.

Arrowstreet Capital Limited Partnership lifted its position in shares of Sprout Social, Inc. (NASDAQ:SPT - Free Report) by 46.9% during the first quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 442,496 shares of the company's stock after buying an additional 141,258 shares during the quarter. Arrowstreet Capital Limited Partnership owned approximately 0.74% of Sprout Social worth $2,522,000 at the end of the most recent quarter.

Other hedge funds also recently bought and sold shares of the company. Vanguard Group Inc. raised its stake in Sprout Social by 4.2% during the 4th quarter. Vanguard Group Inc. now owns 6,822,928 shares of the company's stock valued at $76,894,000 after purchasing an additional 274,527 shares during the period. Nano Cap New Millennium Growth Fund L P bought a new position in Sprout Social in the 4th quarter worth approximately $2,564,000. Brighton Jones LLC boosted its stake in Sprout Social by 391.7% in the 4th quarter. Brighton Jones LLC now owns 35,985 shares of the company's stock worth $1,105,000 after purchasing an additional 28,667 shares during the period. EVR Research LP purchased a new stake in Sprout Social during the 4th quarter valued at approximately $3,381,000. Finally, LB Partners LLC grew its holdings in Sprout Social by 144.7% during the 1st quarter. LB Partners LLC now owns 1,510,979 shares of the company's stock valued at $8,613,000 after buying an additional 893,502 shares in the last quarter.

Sprout Social Trading Up 2.3%

Shares of SPT opened at $8.75 on Wednesday. The company's fifty day moving average is $7.71 and its 200 day moving average is $7.11. Sprout Social, Inc. has a fifty-two week low of $4.92 and a fifty-two week high of $17.41. The stock has a market capitalization of $525.96 million, a PE ratio of -13.26 and a beta of 0.97. The company has a debt-to-equity ratio of 0.15, a quick ratio of 0.95 and a current ratio of 0.95.

Sprout Social (NASDAQ:SPT - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The company reported $0.23 EPS for the quarter, beating the consensus estimate of $0.16 by $0.07. Sprout Social had a negative net margin of 8.18% and a negative return on equity of 13.90%. The business had revenue of $121.50 million during the quarter, compared to analyst estimates of $120.33 million. Sprout Social has set its Q2 2026 guidance at 0.150-0.160 EPS and its FY 2026 guidance at 0.880-0.970 EPS. Sell-side analysts expect that Sprout Social, Inc. will post -0.31 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, insider Justyn Russell Howard sold 40,000 shares of the firm's stock in a transaction on Friday, July 10th. The stock was sold at an average price of $8.28, for a total value of $331,200.00. Following the completion of the sale, the insider directly owned 7,417 shares in the company, valued at $61,412.76. This trade represents a 84.36% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 9.60% of the company's stock.

Analysts Set New Price Targets

Several equities analysts have recently commented on SPT shares. Barclays boosted their target price on shares of Sprout Social from $8.00 to $9.00 and gave the stock an "overweight" rating in a report on Monday, May 11th. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Sprout Social in a research note on Friday, July 17th. Four equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Hold" and an average price target of $11.88.

Sprout Social Profile

Sprout Social NASDAQ: SPT is a Chicago-based software company specializing in social media management solutions for businesses of all sizes. The company provides a cloud-based platform designed to help organizations improve their social media presence through a suite of tools for content scheduling, community engagement, social listening and analytics. Sprout Social's platform is built to streamline the workflows of marketing, customer care and public relations teams by providing a centralized hub for managing multiple social channels.

The company's product offerings include publishing and scheduling capabilities that allow users to plan and automate social content across networks such as Facebook, Instagram, Twitter, LinkedIn and Pinterest.

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