Wellington Management Group LLP Lowers Position in Sprout Social, Inc. $SPT

Key Points

• Wellington Management Group LLP reduced its holdings in Sprout Social, Inc. by 21.0%, now owning approximately 2.83 million shares valued at $62.2 million.
• Despite the reduction in position from Wellington, multiple other hedge funds increased their stakes in Sprout Social, with increases ranging from 0.4% to a staggering 1,319.4%.
• Sprout Social reported an EPS of $0.18 for the last quarter, exceeding estimates, alongside a 12.5% year-over-year revenue growth, totaling approximately $111.78 million.

Wellington Management Group LLP cut its holdings in Sprout Social, Inc. (NASDAQ:SPT - Free Report) by 21.0% during the 1st quarter, according to the company in its most recent disclosure with the SEC. The firm owned 2,829,877 shares of the company's stock after selling 753,525 shares during the quarter. Wellington Management Group LLP owned 4.90% of Sprout Social worth $62,229,000 as of its most recent SEC filing.

Several other institutional investors have also recently added to or reduced their stakes in SPT. Vanguard Group Inc. raised its position in shares of Sprout Social by 0.3% during the first quarter. Vanguard Group Inc. now owns 5,900,938 shares of the company's stock worth $129,762,000 after purchasing an additional 14,771 shares during the period. Cadian Capital Management LP raised its position 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 purchasing an additional 263,267 shares during the period. Dorsey Asset Management LLC raised its position 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 purchasing an additional 330,155 shares during the period. Jennison Associates LLC raised its position in shares of Sprout Social by 1.3% during the first quarter. Jennison Associates LLC now owns 2,200,443 shares of the company's stock worth $48,388,000 after purchasing an additional 28,876 shares during the period. Finally, ArrowMark Colorado Holdings LLC raised its position 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 purchasing an additional 1,403,549 shares during the period.

Analyst Ratings Changes

A number of brokerages have recently weighed in on SPT. Needham & Company LLC reaffirmed a "buy" rating and set a $32.00 target price on shares of Sprout Social in a research report on Wednesday, May 28th. Oppenheimer lowered their target price on Sprout Social from $32.00 to $23.00 and set an "outperform" rating on the stock in a research report on Thursday, August 7th. 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 report on Thursday, August 7th. Zacks Research lowered Sprout Social from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, August 13th. Finally, Canaccord Genuity Group lowered their price target on Sprout Social from $30.00 to $25.00 and set a "buy" rating for the company in a research report on Thursday, August 7th. Six research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $27.36.

Sprout Social Stock Performance

Shares of SPT stock traded down $0.08 on Thursday, hitting $15.62. 140,114 shares of the stock were exchanged, compared to its average volume of 716,550. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 0.08. The firm has a market capitalization of $918.32 million, a PE ratio of -16.44 and a beta of 0.99. Sprout Social, Inc. has a one year low of $13.33 and a one year high of $36.30. The firm's 50 day moving average is $17.89 and its two-hundred day moving average is $21.46.

Sprout Social (NASDAQ:SPT - Get Free Report) last posted its quarterly earnings results on Wednesday, August 6th. The company reported $0.18 earnings per share for the quarter, topping the consensus estimate of $0.15 by $0.03. The company had revenue of $111.78 million during the quarter, compared to the consensus estimate of $110.93 million. Sprout Social had a negative return on equity of 25.95% and a negative net margin of 12.70%.The firm's quarterly revenue was up 12.5% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.09 EPS. Sell-side analysts expect that Sprout Social, Inc. will post -0.99 earnings per share for the current fiscal year.

Insider Transactions at Sprout Social

In related news, insider Justyn Russell Howard sold 40,000 shares of the stock in a transaction dated Tuesday, July 8th. The stock was sold at an average price of $21.12, for a total transaction of $844,800.00. Following the sale, the insider owned 7,417 shares of the company's stock, valued at approximately $156,647.04. This represents a 84.36% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Ryan Paul Barretto sold 16,800 shares of the stock in a transaction dated Tuesday, July 8th. The stock was sold at an average price of $21.16, for a total value of $355,488.00. Following the sale, 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. In the last 90 days, insiders sold 112,375 shares of company stock worth $2,389,535. 10.12% of the stock is owned by company insiders.

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.