Sprout Social (NASDAQ:SPT) Hits New 12-Month Low - Here's What Happened

Key Points

• Sprout Social's stock hit a new 52-week low of $12.13 during trading, closing at $12.26, reflecting a significant decline from its previous levels.
• Multiple analysts have downgraded Sprout Social's price targets, with Oppenheimer reducing it from $32.00 to $23.00, highlighting a mixed outlook from the investment community.
• The company reported quarterly earnings of $0.18 EPS, exceeding expectations, but continues to face a negative return on equity of 25.95% and a net margin of 12.70%.

Sprout Social, Inc. (NASDAQ:SPT - Get Free Report)'s share price hit a new 52-week low during trading on Tuesday . The company traded as low as $12.13 and last traded at $12.26, with a volume of 1648121 shares changing hands. The stock had previously closed at $12.49.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on the stock. Oppenheimer dropped their target price on shares of Sprout Social from $32.00 to $23.00 and set an "outperform" rating for the company in a report on Thursday, August 7th. The Goldman Sachs Group cut their price target on Sprout Social from $24.00 to $21.00 and set a "neutral" rating for the company in a report on Thursday, August 7th. Zacks Research lowered Sprout Social from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, August 13th. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Sprout Social in a research note on Saturday, September 27th. Finally, Canaccord Genuity Group cut their price objective on Sprout Social from $30.00 to $25.00 and set a "buy" rating on the stock in a report on Thursday, August 7th. Six research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $27.36.

Sprout Social Trading Down 1.8%

The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 0.08. The stock has a market capitalization of $721.01 million, a PE ratio of -12.91 and a beta of 0.84. The business's 50-day moving average is $14.74 and its two-hundred day moving average is $18.81.

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

Insider Transactions at Sprout Social

In other news, Director Karen Walker sold 5,000 shares of the business's stock in a transaction that occurred on Monday, July 14th. The stock was sold at an average price of $19.05, for a total transaction of $95,250.00. Following the sale, the director owned 28,963 shares of the company's stock, valued at $551,745.15. The trade was a 14.72% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Justyn Russell Howard sold 20,000 shares of Sprout Social stock in a transaction on Friday, September 5th. The stock was sold at an average price of $14.94, for a total value of $298,800.00. Following the transaction, the insider directly owned 7,417 shares of the company's stock, valued at $110,809.98. This trade represents a 72.95% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 35,566 shares of company stock worth $554,231. 10.12% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Zurcher Kantonalbank Zurich Cantonalbank increased its position in Sprout Social by 11.2% during the first quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 16,976 shares of the company's stock worth $373,000 after buying an additional 1,703 shares in the last quarter. Cubist Systematic Strategies LLC increased its position in Sprout Social by 633.2% during the 1st quarter. Cubist Systematic Strategies LLC now owns 85,056 shares of the company's stock worth $1,870,000 after purchasing an additional 73,456 shares in the last quarter. Brighton Jones LLC raised its stake in Sprout Social by 391.7% in the 4th quarter. Brighton Jones LLC now owns 35,985 shares of the company's stock valued at $1,105,000 after purchasing an additional 28,667 shares during the last quarter. Teacher Retirement System of Texas purchased a new position in Sprout Social in the 1st quarter valued at about $363,000. Finally, Rhumbline Advisers lifted its holdings in Sprout Social by 9.6% in the 1st quarter. Rhumbline Advisers now owns 76,976 shares of the company's stock valued at $1,693,000 after purchasing an additional 6,774 shares in the last quarter.

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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