Sprout Social (NASDAQ:SPT) Stock Jumps 7% - Here's Why

Key Points

• Sprout Social shares jumped about 7% to roughly $10.45, with trading volume significantly below the stock’s average.
• Analyst sentiment improved as Barclays raised its price target to $12 and Morgan Stanley lifted its target to $11; the consensus rating remains “Hold” with a $10.43 target.
• 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, though it remains unprofitable on a net-margin basis.

Sprout Social, Inc. (NASDAQ:SPT - Get Free Report)'s stock price shot up 7% on Thursday. The company traded as high as $10.38 and last traded at $10.4540. Approximately 331,410 shares traded hands during trading, a decline of 77% from the average daily volume of 1,455,118 shares. The stock had previously closed at $9.77.

Analysts Set New Price Targets

Several research firms recently commented on SPT. Barclays boosted their price objective on shares of Sprout Social from $9.00 to $12.00 and gave the stock an "overweight" rating in a research report on Tuesday, August 11th. Morgan Stanley increased their price target on Sprout Social from $10.00 to $11.00 and gave the stock an "equal weight" rating in a research note on Thursday, August 13th. Weiss Ratings restated a "sell (e+)" rating on shares of Sprout Social in a report on Friday, July 17th. Zacks Research raised shares of Sprout Social from a "hold" rating to a "strong-buy" rating in a research note on Monday, August 10th. Finally, Wall Street Zen upgraded Sprout Social from a "buy" rating to a "strong-buy" rating in a report on Saturday, August 15th. One 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 assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $10.43.

Sprout Social Trading Up 6.9%

The firm has a 50-day moving average price of $9.98 and a 200-day moving average price of $7.85. The company has a market capitalization of $632.86 million, a price-to-earnings ratio of -20.97 and a beta of 0.95. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.14.

Sprout Social (NASDAQ:SPT - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The company reported $0.26 earnings per share for the quarter, topping the consensus estimate of $0.16 by $0.10. The firm had revenue of $123.85 million for the quarter, compared to analysts' expectations 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. As a group, sell-side 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 the company's 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 sale, the insider directly owned 239,840 shares in the company, valued at $2,746,168. This represents a 4.35% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 51,612 shares of company stock valued at $464,157 over the last quarter. Insiders own 9.60% of the company's stock.

Hedge Funds Weigh In On Sprout Social

Several large investors have recently bought and sold shares of SPT. Sequoia Financial Advisors LLC bought a new stake in shares of Sprout Social in the second quarter worth about $192,000. WINTON GROUP Ltd grew its stake 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 worth $204,000 after acquiring an additional 3,600 shares in the last quarter. Integrated Wealth Concepts LLC bought a new position in shares of Sprout Social in the 2nd quarter valued at about $84,000. Squarepoint Ops LLC acquired a new position in shares of Sprout Social during the 2nd quarter worth approximately $457,000. Finally, Proficio Capital Partners LLC bought a new stake in Sprout Social during the second quarter worth $119,000.

About Sprout Social

Sprout Social, Inc NASDAQ: SPT is a software company that provides social media management and analytics tools for businesses, agencies and other organizations. Its cloud-based platform helps users manage social media activities from a centralized interface, supporting functions such as content publishing, audience engagement, workflow coordination and performance reporting.

The company's product offerings include social media monitoring and listening, analytics, customer care, employee advocacy and influencer marketing capabilities.

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