Sprout Social (NASDAQ:SPT) Reaches New 12-Month Low - Here's Why

Key Points

• Sprout Social's stock has reached a new 52-week low, trading at $10.75, reflecting a significant decline over recent weeks.
• Multiple research analysts have downgraded their price targets and ratings for Sprout Social, with the average target price now at $27.36, indicating a consensus rating of "Hold."
• In recent insider trading, Justyn Russell Howard sold 20,000 shares at $11.81 each, significantly reducing their stake in the company by 72.95%.

Sprout Social, Inc. (NASDAQ:SPT - Get Free Report) shares reached a new 52-week low on Tuesday . The stock traded as low as $10.75 and last traded at $10.83, with a volume of 2010 shares traded. The stock had previously closed at $10.96.

Analyst Ratings Changes

Several research analysts recently weighed in on SPT shares. Weiss Ratings restated a "sell (e+)" rating on shares of Sprout Social in a research report on Wednesday, October 8th. The Goldman Sachs Group reduced their price target on shares of Sprout Social from $24.00 to $21.00 and set a "neutral" rating for the company in a research report on Thursday, August 7th. Oppenheimer reduced their price target on shares of Sprout Social from $32.00 to $23.00 and set an "outperform" rating for the company in a research report on Thursday, August 7th. Zacks Research downgraded shares of Sprout Social from a "strong-buy" rating to a "hold" rating in a report on Wednesday, August 13th. Finally, Canaccord Genuity Group cut their price objective on shares of Sprout Social from $30.00 to $25.00 and set a "buy" rating for the company in a report on Thursday, August 7th. Six research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock has an average rating of "Hold" and an average target price of $27.36.

Sprout Social Stock Performance

The firm's 50 day moving average price is $14.13 and its two-hundred day moving average price is $18.36. The company has a debt-to-equity ratio of 0.08, a quick ratio of 1.00 and a current ratio of 1.00. The firm has a market cap of $642.15 million, a PE ratio of -11.39 and a beta of 0.84.

Sprout Social (NASDAQ:SPT - Get Free Report) last posted its quarterly earnings results on Wednesday, August 6th. The company reported $0.18 earnings per share for the quarter, beating the consensus estimate 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 analysts' expectations of $110.93 million. During the same quarter in the prior year, the company posted $0.09 EPS. The business's revenue for the quarter was up 12.5% on a year-over-year basis. On average, research analysts forecast that Sprout Social, Inc. will post -0.99 earnings per share for the current year.

Insider Buying and Selling at Sprout Social

In related 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 completion of the transaction, the insider owned 7,417 shares of the company's stock, valued at approximately $87,594.77. This trade represents a 72.95% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Over the last three months, insiders have sold 50,566 shares of company stock worth $695,181. Company insiders own 10.12% of the company's stock.

Hedge Funds Weigh In On Sprout Social

A number of hedge funds have recently made changes to their positions in SPT. Brighton Jones LLC boosted its position in shares of Sprout Social by 391.7% during the 4th 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 period. GAMMA Investing LLC boosted its position in shares of Sprout Social by 19,500.0% during the 1st 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 period. Rhumbline Advisers boosted its position in shares of Sprout Social by 9.6% during the 1st quarter. Rhumbline Advisers now owns 76,976 shares of the company's stock worth $1,693,000 after purchasing an additional 6,774 shares during the period. Peregrine Capital Management LLC lifted its holdings in Sprout Social by 3.3% during the 1st quarter. Peregrine Capital Management LLC now owns 178,411 shares of the company's stock worth $3,923,000 after buying an additional 5,709 shares in the last quarter. Finally, RedJay Asset Management Inc. acquired a new stake in Sprout Social during the 1st quarter worth approximately $2,199,000.

Sprout Social Company Profile

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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