Sprout Social, Inc. (NASDAQ:SPT) Given Average Recommendation of "Hold" by Brokerages

Key Points

• Analyst consensus: Sprout Social has an average rating of "Hold" from 11 brokerages (2 sell, 5 hold, 4 buy) and an average 1‑year price target of $13.11, with several firms cutting targets recently.
• Shares trade around $6.70 (52‑week range $4.92–$25.48) and the company, with a market cap near $399M, remains unprofitable (P/E -9.05) despite beating the last quarter's EPS ($0.20 vs. $0.16) and issuing FY‑2026 EPS guidance of $0.88–$0.97.
• Insider activity: Executive Justyn Russell Howard sold 40,000 shares under a Rule 10b5‑1 plan (an ~84% reduction in his holdings), and insiders have sold 103,855 shares (~$600,860) in the past 90 days while institutions like Vanguard have increased stakes.

Sprout Social, Inc. (NASDAQ:SPT - Get Free Report) has earned an average rating of "Hold" from the eleven brokerages that are currently covering the stock, MarketBeat reports. Two research analysts have rated the stock with a sell recommendation, five have given a hold recommendation and four have assigned a buy recommendation to the company. The average 1 year price target among analysts that have issued a report on the stock in the last year is $13.1111.

A number of equities research analysts have recently commented on SPT shares. Needham & Company LLC lowered their price target on shares of Sprout Social from $32.00 to $14.00 and set a "buy" rating for the company in a report on Friday, February 27th. Wall Street Zen raised shares of Sprout Social from a "hold" rating to a "buy" rating in a research note on Sunday, March 8th. KeyCorp reduced their price target on Sprout Social from $9.00 to $6.00 and set an "underweight" rating on the stock in a research note on Friday, February 27th. Canaccord Genuity Group restated a "hold" rating and set a $9.00 price objective (down from $16.00) on shares of Sprout Social in a report on Friday, February 27th. Finally, Jefferies Financial Group lowered their price objective on Sprout Social from $15.00 to $12.00 and set a "buy" rating for the company in a research report on Tuesday, February 3rd.

Sprout Social Stock Performance

Sprout Social stock opened at $6.70 on Wednesday. Sprout Social has a fifty-two week low of $4.92 and a fifty-two week high of $25.48. The company has a market capitalization of $399.05 million, a price-to-earnings ratio of -9.05 and a beta of 0.94. The stock has a fifty day moving average of $5.94 and a two-hundred day moving average of $8.54. The company has a debt-to-equity ratio of 0.20, a quick ratio of 0.93 and a current ratio of 0.93.

Sprout Social (NASDAQ:SPT - Get Free Report) last posted its quarterly earnings data on Thursday, February 26th. The company reported $0.20 EPS for the quarter, beating analysts' consensus estimates of $0.16 by $0.04. The business had revenue of $120.89 million for the quarter, compared to analyst estimates of $118.68 million. Sprout Social had a negative return on equity of 16.10% and a negative net margin of 9.47%.Sprout Social has set its FY 2026 guidance at 0.880-0.970 EPS and its Q1 2026 guidance at 0.150-0.160 EPS. On average, analysts anticipate that Sprout Social will post -0.39 EPS for the current fiscal year.

Insider Activity

In related news, insider Justyn Russell Howard sold 40,000 shares of the company's stock in a transaction that occurred on Friday, April 10th. The shares were sold at an average price of $5.03, for a total transaction of $201,200.00. Following the completion of the transaction, the insider owned 7,417 shares of the company's stock, valued at approximately $37,307.51. This represents a 84.36% decrease in their ownership of the stock. 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. Insiders have sold 103,855 shares of company stock valued at $600,860 over the last 90 days. 9.60% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the company. Nordea Investment Management AB purchased a new stake in shares of Sprout Social in the third quarter worth about $1,702,000. Y Intercept Hong Kong Ltd raised its holdings in shares of Sprout Social by 121.5% during the 3rd quarter. Y Intercept Hong Kong Ltd now owns 446,403 shares of the company's stock valued at $5,768,000 after buying an additional 244,874 shares during the period. LB Partners LLC acquired a new position in Sprout Social during the 3rd quarter worth approximately $2,455,000. Vanguard Group Inc. boosted its holdings in Sprout Social by 4.4% in the 3rd quarter. Vanguard Group Inc. now owns 6,548,401 shares of the company's stock worth $84,605,000 after acquiring an additional 276,300 shares during the period. Finally, Counterpoint Mutual Funds LLC grew its position in Sprout Social by 941.1% in the third quarter. Counterpoint Mutual Funds LLC now owns 202,611 shares of the company's stock valued at $2,618,000 after acquiring an additional 183,150 shares in the last quarter.

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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