Invenomic Capital Management LP Acquires Shares of 137,991 Sprout Social, Inc. $SPT

Key Points

• Invenomic Capital Management LP made a new investment of approximately $3.03 million in Sprout Social, acquiring 137,991 shares, representing about 0.24% ownership.
• Despite the investment interest, several analysts have adjusted their outlook on Sprout Social, with Goldman Sachs lowering its target price from $24.00 to $21.00 and Zacks Research downgrading the stock from "strong-buy" to "hold."
• Sprout Social's shares opened at $15.15, experiencing a negative net margin of 12.70%, yet revenues increased by 12.5% year-over-year to $111.78 million.

Invenomic Capital Management LP acquired a new stake in shares of Sprout Social, Inc. (NASDAQ:SPT - Free Report) in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor acquired 137,991 shares of the company's stock, valued at approximately $3,034,000. Invenomic Capital Management LP owned about 0.24% of Sprout Social at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently modified their holdings of the company. AQR Capital Management LLC bought a new position in Sprout Social in the first quarter worth about $365,000. Cubist Systematic Strategies LLC boosted its stake in shares of Sprout Social by 633.2% during the 1st quarter. Cubist Systematic Strategies LLC now owns 85,056 shares of the company's stock worth $1,870,000 after acquiring an additional 73,456 shares during the last quarter. Quarry LP boosted its stake in shares of Sprout Social by 85.2% during the 1st quarter. Quarry LP now owns 1,463 shares of the company's stock worth $32,000 after acquiring an additional 673 shares during the last quarter. Panagora Asset Management Inc. boosted its stake in shares of Sprout Social by 10.9% during the 1st quarter. Panagora Asset Management Inc. now owns 227,062 shares of the company's stock worth $4,993,000 after acquiring an additional 22,269 shares during the last quarter. Finally, Magnetar Financial LLC purchased a new position in shares of Sprout Social during the 1st quarter worth $335,000.

Insider Buying and Selling at Sprout Social

In other Sprout Social news, Director Karen Walker sold 5,000 shares of the stock in a transaction that occurred on Monday, July 14th. The shares were sold at an average price of $19.05, for a total transaction of $95,250.00. Following the sale, the director directly owned 28,963 shares in the company, valued at $551,745.15. This represents a 14.72% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Ryan Paul Barretto sold 16,800 shares of the stock in a transaction that occurred on Tuesday, July 8th. The shares were sold at an average price of $21.16, for a total transaction of $355,488.00. Following the completion of the sale, the chief executive officer directly owned 119,775 shares in the company, valued at approximately $2,534,439. This represents a 12.30% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 92,366 shares of company stock worth $1,754,519 in the last ninety days. 10.12% of the stock is owned by insiders.

Sprout Social Price Performance

NASDAQ SPT traded up $0.23 during trading hours on Thursday, hitting $14.10. 294,221 shares of the company's stock traded hands, compared to its average volume of 732,066. 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 has a market capitalization of $829.16 million, a PE ratio of -14.84 and a beta of 0.86. The firm's 50-day moving average is $16.86 and its 200-day moving average is $20.37. Sprout Social, Inc. has a 52-week low of $13.33 and a 52-week high of $36.30.

Sprout Social (NASDAQ:SPT - Get Free Report) last posted its earnings results on Wednesday, August 6th. The company reported $0.18 earnings per share for the quarter, beating the consensus estimate 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%. Sprout Social's revenue was up 12.5% on a year-over-year basis. During the same period in the previous year, the business posted $0.09 EPS. Equities analysts forecast that Sprout Social, Inc. will post -0.99 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

SPT has been the subject of several research reports. Canaccord Genuity Group dropped their price objective on shares of Sprout Social from $30.00 to $25.00 and set a "buy" rating for the company in a report on Thursday, August 7th. Oppenheimer dropped their price target on Sprout Social from $32.00 to $23.00 and set an "outperform" rating for the company in a research report on Thursday, August 7th. Needham & Company LLC reiterated a "buy" rating and issued a $32.00 price target on shares of Sprout Social in a research report on Wednesday, May 28th. Cantor Fitzgerald reiterated a "neutral" rating and issued a $24.00 price target on shares of Sprout Social in a research report on Tuesday, June 3rd. Finally, Zacks Research lowered Sprout Social from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, August 13th. Six research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company's stock. According to MarketBeat, Sprout Social presently has an average rating of "Moderate Buy" and a consensus target price of $27.36.

Sprout Social 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.