Sprinklr (NYSE:CXM) Trading Down 6.2% - Time to Sell?

Key Points

• Sprinklr shares fell 6.2% to about $5.55 on trading volume well below average, bringing the stock below its 50-day moving average but near its 200-day average.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an $8.21 average price target; targets range from $7.50 to $8.50.
• Sprinklr modestly beat quarterly EPS estimates but missed revenue expectations, while revenue grew just 0.8% year over year. Insiders sold shares during the quarter, although institutional investors own about 40.2% of the company.

Shares of Sprinklr, Inc. (NYSE:CXM - Get Free Report) fell 6.2% on Tuesday . The company traded as low as $5.53 and last traded at $5.5450. 738,216 shares traded hands during trading, a decline of 79% from the average session volume of 3,456,252 shares. The stock had previously closed at $5.91.

Analysts Set New Price Targets

A number of equities analysts recently commented on the stock. Morgan Stanley lifted their price target on shares of Sprinklr from $7.00 to $8.00 and gave the stock an "equal weight" rating in a research note on Thursday, September 3rd. Weiss Ratings raised shares of Sprinklr from a "sell (d)" rating to a "sell (d+)" rating in a research note on Wednesday, August 5th. Rosenblatt Securities reaffirmed a "buy" rating and set a $8.50 target price on shares of Sprinklr in a research note on Thursday, September 3rd. UBS Group set a $7.50 price target on Sprinklr in a report on Thursday. Finally, Citigroup raised their price target on Sprinklr from $6.00 to $8.00 and gave the stock a "neutral" rating in a research note on Thursday, September 3rd. Two equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Sprinklr currently has a consensus rating of "Hold" and a consensus target price of $8.21.

Sprinklr Trading Down 6.3%

The firm has a market capitalization of $1.30 billion, a P/E ratio of 55.36 and a beta of 0.65. The stock has a 50-day simple moving average of $6.40 and a two-hundred day simple moving average of $5.80.

Sprinklr (NYSE:CXM - Get Free Report) last announced its quarterly earnings results on Wednesday, September 2nd. The company reported $0.11 EPS for the quarter, beating the consensus estimate of $0.10 by $0.01. Sprinklr had a return on equity of 7.21% and a net margin of 2.65%.The firm had revenue of $213.74 million for the quarter, compared to analyst estimates of $214.45 million. During the same quarter last year, the firm posted $0.13 earnings per share. The business's revenue for the quarter was up .8% on a year-over-year basis. Sprinklr has set its FY 2027 guidance at 0.470-0.470 EPS and its Q3 2027 guidance at 0.110-0.110 EPS. As a group, research analysts expect that Sprinklr, Inc. will post 0.23 EPS for the current year.

Insider Activity

In other Sprinklr news, CTO Amitabh Misra sold 29,180 shares of the company's stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $5.30, for a total transaction of $154,654.00. Following the completion of the sale, the chief technology officer owned 854,779 shares in the company, valued at $4,530,328.70. This represents a 3.30% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, General Counsel Jacob Scott sold 71,585 shares of the stock in a transaction on Monday, August 10th. The shares were sold at an average price of $6.97, for a total value of $498,947.45. Following the sale, the general counsel directly owned 576,827 shares in the company, valued at $4,020,484.19. This trade represents a 11.04% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 395,880 shares of company stock valued at $2,210,116. 25.18% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Sprinklr

Several institutional investors and hedge funds have recently added to or reduced their stakes in CXM. SG Americas Securities LLC boosted its position in shares of Sprinklr by 84.9% in the 1st quarter. SG Americas Securities LLC now owns 8,377,479 shares of the company's stock worth $50,265,000 after purchasing an additional 3,846,652 shares in the last quarter. Private Management Group Inc. increased its position in Sprinklr by 1,249.3% during the 4th quarter. Private Management Group Inc. now owns 2,412,330 shares of the company's stock valued at $18,768,000 after buying an additional 2,233,542 shares in the last quarter. Sea Cliff Partners Management LP raised its stake in Sprinklr by 1,174.6% in the second quarter. Sea Cliff Partners Management LP now owns 2,166,792 shares of the company's stock valued at $18,331,000 after buying an additional 1,996,792 shares during the last quarter. Norges Bank acquired a new stake in Sprinklr in the fourth quarter worth about $11,524,000. Finally, Goldman Sachs Group Inc. boosted its holdings in Sprinklr by 138.8% in the fourth quarter. Goldman Sachs Group Inc. now owns 1,646,893 shares of the company's stock worth $12,813,000 after acquiring an additional 957,149 shares in the last quarter. Hedge funds and other institutional investors own 40.19% of the company's stock.

About Sprinklr

Sprinklr, Inc NYSE: CXM is a leading enterprise software firm specializing in customer experience management. The company offers a unified, AI-driven platform designed to help organizations engage customers across multiple digital and social channels. By consolidating marketing, advertising, research, care and engagement functions into a single SaaS solution, Sprinklr enables brands to deliver consistent and personalized experiences at scale.

Sprinklr's platform includes modules for social media management, customer service automation, social advertising and market research, supplemented by AI and machine learning capabilities.

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