Sprout Social, Inc. (NASDAQ:SPT) Receives Consensus Rating of "Hold" from Brokerages

Key Points

• Sprout Social, Inc. has received a consensus rating of "Hold" from thirteen analysts, with one sell recommendation, six holds, and six buys.
• Recent price target revisions include cuts from Canaccord Genuity ($30 to $25) and Goldman Sachs ($24 to $21), reflecting cautious sentiment among analysts.
• Insider Justyn Russell Howard sold 20,000 shares at an average price of $11.81, representing a significant 72.95% decrease in their ownership of the stock.

Sprout Social, Inc. (NASDAQ:SPT - Get Free Report) has earned a consensus rating of "Hold" from the thirteen analysts that are covering the firm, Marketbeat.com reports. One equities research analyst has rated the stock with a sell recommendation, six have issued a hold recommendation and six have issued a buy recommendation on the company. The average 1-year price objective among analysts that have updated their coverage on the stock in the last year is $27.3636.

A number of research firms have recently commented on SPT. Canaccord Genuity Group cut their price target on shares of Sprout Social from $30.00 to $25.00 and set a "buy" rating on the stock in a report on Thursday, August 7th. The Goldman Sachs Group cut their price target on shares of Sprout Social from $24.00 to $21.00 and set a "neutral" rating on the stock in a report on Thursday, August 7th. Zacks Research cut shares of Sprout Social from a "strong-buy" rating to a "hold" rating in a report on Wednesday, August 13th. Weiss Ratings reiterated a "sell (e+)" rating on shares of Sprout Social in a report on Wednesday, October 8th. Finally, Oppenheimer cut their price target on shares of Sprout Social from $32.00 to $23.00 and set an "outperform" rating on the stock in a report on Thursday, August 7th.

Insider Activity at Sprout Social

In other news, insider Justyn Russell Howard sold 20,000 shares of the stock in a transaction that occurred on Tuesday, October 7th. The shares were sold at an average price of $11.81, for a total transaction of $236,200.00. Following the sale, the insider owned 7,417 shares in the company, valued at $87,594.77. This represents a 72.95% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Insiders have sold a total of 50,566 shares of company stock worth $695,181 in the last 90 days. Corporate insiders own 10.12% of the company's stock.

Institutional Investors Weigh In On Sprout Social

Several institutional investors and hedge funds have recently added to or reduced their stakes in SPT. Brighton Jones LLC boosted its holdings in Sprout Social by 391.7% in the fourth quarter. Brighton Jones LLC now owns 35,985 shares of the company's stock worth $1,105,000 after purchasing an additional 28,667 shares during the last quarter. GAMMA Investing LLC boosted its holdings in Sprout Social by 19,500.0% in the first quarter. GAMMA Investing LLC now owns 9,016 shares of the company's stock worth $198,000 after purchasing an additional 8,970 shares during the last quarter. Peregrine Capital Management LLC boosted its holdings in Sprout Social by 3.3% in the first quarter. Peregrine Capital Management LLC now owns 178,411 shares of the company's stock worth $3,923,000 after purchasing an additional 5,709 shares during the last quarter. RedJay Asset Management Inc. purchased a new stake in Sprout Social in the first quarter worth approximately $2,199,000. Finally, Teacher Retirement System of Texas purchased a new stake in Sprout Social in the first quarter worth approximately $363,000.

Sprout Social Price Performance

Shares of NASDAQ SPT opened at $10.51 on Friday. Sprout Social has a fifty-two week low of $10.33 and a fifty-two week high of $36.30. The company has a 50 day simple moving average of $13.78 and a two-hundred day simple moving average of $18.11. The company has a market capitalization of $618.09 million, a price-to-earnings ratio of -11.06 and a beta of 0.84. The company has a debt-to-equity ratio of 0.08, a quick ratio of 1.00 and a current ratio of 1.00.

Sprout Social (NASDAQ:SPT - Get Free Report) last announced its earnings results on Wednesday, August 6th. The company reported $0.18 earnings per share for the quarter, beating analysts' consensus estimates of $0.15 by $0.03. Sprout Social had a negative net margin of 12.70% and a negative return on equity of 25.95%. The business had revenue of $111.78 million during the quarter, compared to the consensus estimate of $110.93 million. During the same quarter last year, the firm earned $0.09 earnings per share. The business's revenue for the quarter was up 12.5% on a year-over-year basis. Analysts expect that Sprout Social will post -0.99 EPS for the current fiscal year.

About Sprout Social

Sprout Social, Inc designs, develops, and operates a web-based social media management platform in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company provides cloud software for social messaging, data and workflows in a unified system of record, intelligence, and action.

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