Sprout Social (NASDAQ:SPT) Trading 4.2% Higher - What's Next?

Key Points

• Sprout Social shares rose 4.2% to approximately $10.56, although trading volume was 72% below the average session level.
• Analyst views remain mixed: the consensus rating is Hold with a $10.43 target price, while recent target changes ranged from $7 to $12.
• The company beat quarterly expectations, reporting $0.26 EPS versus a $0.16 estimate and $123.85 million in revenue versus $122.19 million expected, but it continues to report negative margins and return on equity.

Sprout Social, Inc. (NASDAQ:SPT - Get Free Report) shares traded up 4.2% during mid-day trading on Thursday . The stock traded as high as $10.55 and last traded at $10.5550. 414,181 shares changed hands during trading, a decline of 72% from the average session volume of 1,485,734 shares. The stock had previously closed at $10.13.

Analyst Ratings Changes

Several research firms recently weighed in on SPT. Wall Street Zen upgraded Sprout Social from a "buy" rating to a "strong-buy" rating in a research report on Saturday, August 15th. Barclays increased their target price on 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 raised their price objective on Sprout Social from $10.00 to $11.00 and gave the stock an "equal weight" rating in a report on Thursday, August 13th. Weiss Ratings restated a "sell (e+)" rating on shares of Sprout Social in a report on Friday, July 17th. Finally, KeyCorp raised their target price on shares of Sprout Social from $6.00 to $7.00 and gave the company an "underweight" rating in a research note on Friday, August 7th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, three have issued a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $10.43.

Sprout Social Stock Up 4.2%

The company has a market capitalization of $639.59 million, a PE ratio of -21.11 and a beta of 0.95. The company has a debt-to-equity ratio of 0.14, a quick ratio of 1.03 and a current ratio of 1.03. The firm has a fifty day simple moving average of $9.37 and a 200-day simple moving average of $7.45.

Sprout Social (NASDAQ:SPT - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The company reported $0.26 EPS for the quarter, topping the consensus estimate of $0.16 by $0.10. Sprout Social had a negative net margin of 6.13% and a negative return on equity of 8.80%. The business had revenue of $123.85 million for the quarter, compared to analysts' expectations of $122.19 million. 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. Equities research analysts anticipate that Sprout Social, Inc. will post -0.02 EPS for the current fiscal year.

Insider Buying and Selling at Sprout Social

In related news, insider Justyn Howard sold 10,895 shares of the firm's stock in a transaction that occurred 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 owned 239,840 shares of the company's stock, valued at approximately $2,746,168. This trade represents a 4.35% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 51,612 shares of company stock worth $464,157. 9.60% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of SPT. Sequoia Financial Advisors LLC acquired a new stake in Sprout Social in the 2nd quarter valued at about $192,000. WINTON GROUP Ltd lifted its holdings in shares of Sprout Social by 15.4% during the second 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. Integrated Wealth Concepts LLC acquired a new position in shares of Sprout Social in the 2nd quarter valued at $84,000. Squarepoint Ops LLC purchased a new position in Sprout Social in the 2nd quarter worth about $457,000. Finally, Proficio Capital Partners LLC purchased a new position in Sprout Social in the 2nd quarter worth about $119,000.

Sprout Social Company Profile

Sprout Social NASDAQ: SPT is a Chicago-based software company specializing in social media management solutions for businesses of all sizes. The company provides a cloud-based platform designed to help organizations improve their social media presence through a suite of tools for content scheduling, community engagement, social listening and analytics. Sprout Social's platform is built to streamline the workflows of marketing, customer care and public relations teams by providing a centralized hub for managing multiple social channels.

The company's product offerings include publishing and scheduling capabilities that allow users to plan and automate social content across networks such as Facebook, Instagram, Twitter, LinkedIn and Pinterest.

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