Sprout Social (NASDAQ:SPT) Shares Up 5.3% - What's Next?

Key Points

• Sprout Social shares rose 5.3% to approximately $10.67, though trading volume was 72% below the average session level.
• Analyst sentiment remains mixed: the stock has an overall consensus rating of “Hold” and an average price target of $10.43, with recent upgrades from Barclays, Wall Street Zen and Zacks Research offset by sell and underweight ratings.
• The company exceeded quarterly expectations, reporting adjusted EPS of $0.26 versus $0.16 expected and revenue of $123.85 million versus $122.19 million forecast. However, Sprout Social remains unprofitable, with a negative net margin of 6.13%, while insiders have sold more than 51,000 shares over the past 90 days.

Sprout Social, Inc. (NASDAQ:SPT - Get Free Report) rose 5.3% during mid-day trading on Wednesday. The stock traded as high as $10.68 and last traded at $10.6660. Approximately 409,555 shares were traded during trading, a decline of 72% from the average session volume of 1,438,676 shares. The stock had previously closed at $10.13.

Analyst Ratings Changes

Several equities analysts have commented on the company. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Sprout Social in a report on Friday, July 17th. Wall Street Zen raised shares of Sprout Social from a "buy" rating to a "strong-buy" rating in a report on Saturday, August 15th. Barclays upped their target price on shares of Sprout Social from $9.00 to $12.00 and gave the company an "overweight" rating in a research note on Tuesday, August 11th. KeyCorp raised their price target on shares of Sprout Social from $6.00 to $7.00 and gave the stock an "underweight" rating in a research note on Friday, August 7th. Finally, Zacks Research raised Sprout Social from a "hold" rating to a "strong-buy" rating in a report on Monday, August 10th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, three have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $10.43.

Sprout Social Stock Up 5.3%

The firm has a market cap of $646.50 million, a price-to-earnings ratio of -21.34 and a beta of 1.01. The business's 50-day moving average is $10.15 and its 200-day moving average is $7.97. The company has a debt-to-equity ratio of 0.14, a quick ratio of 1.03 and a current ratio of 1.03.

Sprout Social (NASDAQ:SPT - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The company reported $0.26 EPS for the quarter, beating analysts' consensus estimates of $0.16 by $0.10. The firm had revenue of $123.85 million for the quarter, compared to analyst estimates of $122.19 million. Sprout Social had a negative net margin of 6.13% and a negative return on equity of 8.80%. Sprout Social has set its FY 2026 guidance at 1.110-1.150 EPS and its Q3 2026 guidance at 0.290-0.300 EPS. On average, equities analysts predict that Sprout Social, Inc. will post -0.02 EPS for the current year.

Insiders Place Their Bets

In other Sprout Social news, insider Justyn Howard sold 10,895 shares of Sprout Social stock in a transaction on Wednesday, September 2nd. The stock was sold at an average price of $11.45, for a total value of $124,747.75. Following the completion of the transaction, the insider owned 239,840 shares in the company, valued at approximately $2,746,168. The trade was a 4.35% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 51,612 shares of company stock worth $464,157. Company insiders own 9.60% of the company's stock.

Institutional Trading of Sprout Social

A number of hedge funds and other institutional investors have recently made changes to their positions in SPT. SG Americas Securities LLC raised its stake in Sprout Social by 10.7% during the first quarter. SG Americas Securities LLC now owns 34,463 shares of the company's stock worth $196,000 after acquiring an additional 3,319 shares in the last quarter. GAMMA Investing LLC boosted its stake in shares of Sprout Social by 115.8% in the 2nd quarter. GAMMA Investing LLC now owns 6,368 shares of the company's stock valued at $48,000 after purchasing an additional 3,417 shares in the last quarter. WINTON GROUP Ltd grew its holdings in shares of Sprout Social by 15.4% during the 2nd quarter. WINTON GROUP Ltd now owns 27,000 shares of the company's stock valued at $204,000 after purchasing an additional 3,600 shares during the last quarter. PNC Financial Services Group Inc. increased its position in Sprout Social by 27.2% during the 1st quarter. PNC Financial Services Group Inc. now owns 20,889 shares of the company's stock worth $119,000 after purchasing an additional 4,467 shares in the last quarter. Finally, Essential Partners LLC increased its position in Sprout Social by 724.9% during the 1st quarter. Essential Partners LLC now owns 6,550 shares of the company's stock worth $37,000 after purchasing an additional 5,756 shares in the last quarter.

Sprout Social Company Profile

Sprout Social, Inc NASDAQ: SPT provides a cloud-based social media management and analytics platform for businesses, agencies and organizations. Its software helps customers manage their social media presence, coordinate workflows and use social data to support marketing, customer care, communications and business decision-making.

The company's platform includes tools for publishing and scheduling content, monitoring and responding to messages, analyzing social media performance, and conducting social listening.

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