Nano Cap New Millennium Growth Fund L P Acquires Shares of 227,500 Sprout Social, Inc. $SPT

Key Points

• Nano Cap New Millennium Growth Fund L P disclosed a new stake in Sprout Social, buying 227,500 shares worth about $2.56 million in the fourth quarter. The position represents about 2.2% of the fund’s portfolio and makes SPT its fifth-largest holding.
• Institutional interest remains active, with several other large investors also increasing or initiating positions, including Vanguard Group, Y Intercept Hong Kong, and ArrowMark Colorado Holdings. This suggests continued hedge fund and institutional involvement in the stock.
• Analyst sentiment is mixed: the stock carries a consensus Hold rating with an average price target of $13.22, while recent moves included both target cuts and a sell rating from Weiss Ratings. Insider activity has also been notable, with a recent sale by Justyn Russell Howard and 103,855 shares sold by insiders over the last 90 days.

Nano Cap New Millennium Growth Fund L P acquired a new stake in shares of Sprout Social, Inc. (NASDAQ:SPT - Free Report) during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm acquired 227,500 shares of the company's stock, valued at approximately $2,564,000. Sprout Social makes up about 2.2% of Nano Cap New Millennium Growth Fund L P's investment portfolio, making the stock its 5th largest holding. Nano Cap New Millennium Growth Fund L P owned 0.38% of Sprout Social at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Y Intercept Hong Kong Ltd lifted its stake in shares of Sprout Social by 121.5% in the third quarter. Y Intercept Hong Kong Ltd now owns 446,403 shares of the company's stock worth $5,768,000 after buying an additional 244,874 shares in the last quarter. LB Partners LLC purchased a new position in shares of Sprout Social in the third quarter worth about $2,455,000. Vanguard Group Inc. lifted its stake in shares of Sprout Social by 4.2% in the fourth quarter. Vanguard Group Inc. now owns 6,822,928 shares of the company's stock worth $76,894,000 after buying an additional 274,527 shares in the last quarter. Counterpoint Mutual Funds LLC lifted its stake in shares of Sprout Social by 941.1% in the third quarter. Counterpoint Mutual Funds LLC now owns 202,611 shares of the company's stock worth $2,618,000 after buying an additional 183,150 shares in the last quarter. Finally, ArrowMark Colorado Holdings LLC lifted its stake in shares of Sprout Social by 9.8% in the third quarter. ArrowMark Colorado Holdings LLC now owns 4,723,921 shares of the company's stock worth $61,033,000 after buying an additional 421,189 shares in the last quarter.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on the stock. Weiss Ratings reissued a "sell (e+)" rating on shares of Sprout Social in a research note on Tuesday, April 21st. Jefferies Financial Group decreased their price target on shares of Sprout Social from $15.00 to $12.00 and set a "buy" rating on the stock in a research note on Tuesday, February 3rd. The Goldman Sachs Group decreased their price target on shares of Sprout Social from $13.00 to $8.00 and set a "neutral" rating on the stock in a research note on Monday, March 2nd. Wall Street Zen raised shares of Sprout Social from a "hold" rating to a "buy" rating in a research note on Sunday, March 8th. Finally, Canaccord Genuity Group reissued a "hold" rating and issued a $9.00 price target (down from $16.00) on shares of Sprout Social in a research note on Friday, February 27th. Four analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $13.22.

Insider Transactions at Sprout Social

In other Sprout Social news, insider Justyn Russell Howard sold 40,000 shares of Sprout Social stock in a transaction dated Friday, April 10th. The shares were sold at an average price of $5.03, for a total transaction of $201,200.00. Following the completion of the sale, the insider directly owned 7,417 shares in the company, valued at $37,307.51. This trade represents a 84.36% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 103,855 shares of company stock worth $600,860 in the last ninety days. 9.60% of the stock is currently owned by company insiders.

Sprout Social Price Performance

Sprout Social stock opened at $6.69 on Friday. Sprout Social, Inc. has a 12-month low of $4.92 and a 12-month high of $22.59. The stock has a market cap of $402.14 million, a P/E ratio of -10.14 and a beta of 0.94. The company has a 50-day moving average price of $5.93 and a 200 day moving average price of $8.18. The company has a current ratio of 0.95, a quick ratio of 0.95 and a debt-to-equity ratio of 0.15.

Sprout Social (NASDAQ:SPT - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The company reported $0.23 earnings per share (EPS) for the quarter, topping 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 firm had revenue of $121.50 million during the quarter, compared to analysts' expectations 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 anticipate that Sprout Social, Inc. will post -0.38 earnings per share for the current year.

About Sprout Social

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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