Oppenheimer Issues Pessimistic Forecast for Sprout Social (NASDAQ:SPT) Stock Price

Key Points

• Oppenheimer has lowered its price target for Sprout Social from $32.00 to $23.00 while maintaining an "outperform" rating, indicating a potential upside of 45.62% from the current stock price.
• Other analysts, including Barclays and Morgan Stanley, have also reduced their target prices, with a consensus price target of $28.42 and an average rating of "Hold".
• Sprout Social's recent quarterly earnings showed a 12.5% year-over-year revenue increase, with the company reporting $111.78 million in revenue, surpassing analyst expectations.

Sprout Social (NASDAQ:SPT - Get Free Report) had its price target decreased by analysts at Oppenheimer from $32.00 to $23.00 in a report released on Thursday,Benzinga reports. The firm presently has an "outperform" rating on the stock. Oppenheimer's target price would suggest a potential upside of 45.62% from the stock's current price.

A number of other research analysts also recently issued reports on SPT. Barclays decreased their target price on shares of Sprout Social from $34.00 to $26.00 and set an "overweight" rating for the company in a research report on Monday, April 21st. Morgan Stanley dropped their price objective on shares of 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. The Goldman Sachs Group decreased their target price on shares of Sprout Social from $29.00 to $23.00 and set a "neutral" rating on the stock in a report on Thursday, April 17th. Needham & Company LLC restated a "buy" rating and issued a $32.00 price objective on shares of Sprout Social in a report on Wednesday, May 28th. Finally, Cantor Fitzgerald reiterated a "neutral" rating and set a $24.00 target price on shares of Sprout Social in a report on Tuesday, June 3rd. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating and six have issued a buy rating to the stock. Based on data from MarketBeat, the company has an average rating of "Hold" and a consensus price target of $28.42.

Sprout Social Price Performance

Shares of NASDAQ SPT opened at $15.79 on Thursday. Sprout Social has a fifty-two week low of $15.94 and a fifty-two week high of $36.30. The firm's 50-day simple moving average is $19.95 and its 200 day simple moving average is $23.39. The company has a debt-to-equity ratio of 0.11, a quick ratio of 0.97 and a current ratio of 0.97. The stock has a market cap of $918.89 million, a price-to-earnings ratio of -15.29 and a beta of 0.99.

Sprout Social (NASDAQ:SPT - Get Free Report) last released its quarterly earnings results on Wednesday, August 6th. The company reported $0.18 EPS for the quarter, beating analysts' consensus estimates of $0.15 by $0.03. Sprout Social had a negative net margin of 14.25% and a negative return on equity of 31.03%. The firm had revenue of $111.78 million during the quarter, compared to analyst estimates of $110.93 million. During the same period in the previous year, the business earned $0.09 EPS. The business's revenue for the quarter was up 12.5% on a year-over-year basis. As a group, research analysts anticipate that Sprout Social will post -0.99 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Sprout Social news, Director Karen Walker sold 5,000 shares of the business's stock in a transaction dated Monday, July 14th. The stock was sold at an average price of $19.05, for a total transaction of $95,250.00. Following the completion of the sale, the director directly owned 28,963 shares of the company's stock, valued at approximately $551,745.15. The trade was a 14.72% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Justyn Russell Howard sold 40,000 shares of the company's stock in a transaction dated Tuesday, July 8th. The shares were sold at an average price of $21.12, for a total value of $844,800.00. Following the completion of the sale, the insider directly owned 7,417 shares of the company's stock, valued at approximately $156,647.04. This trade represents a 84.36% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 112,375 shares of company stock valued at $2,389,535. 10.12% of the stock is owned by company insiders.

Institutional Trading of Sprout Social

Hedge funds have recently made changes to their positions in the company. Versant Capital Management Inc lifted its position in shares of Sprout Social by 1,319.4% during the 1st quarter. Versant Capital Management Inc now owns 1,462 shares of the company's stock valued at $32,000 after buying an additional 1,359 shares during the last quarter. Quarry LP grew its position in shares of Sprout Social by 85.2% in the 1st quarter. Quarry LP now owns 1,463 shares of the company's stock worth $32,000 after buying an additional 673 shares during the last quarter. First Horizon Advisors Inc. lifted its stake in shares of Sprout Social by 78.9% in the 2nd quarter. First Horizon Advisors Inc. now owns 1,531 shares of the company's stock valued at $32,000 after purchasing an additional 675 shares during the period. Caitong International Asset Management Co. Ltd purchased a new position in Sprout Social during the first quarter valued at $47,000. Finally, CWM LLC increased its holdings in shares of Sprout Social by 266.3% in the 2nd quarter. CWM LLC now owns 3,934 shares of the company's stock worth $82,000 after purchasing an additional 2,860 shares in the last quarter.

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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