Sprout Social (NASDAQ:SPT) Releases FY 2025 Earnings Guidance

Key Points

• Sprout Social updated its FY 2025 earnings guidance, projecting an EPS of 0.710-0.750 and revenue of $452.9 million-$455.9 million, both exceeding consensus estimates.
• Several analysts adjusted their target prices for Sprout Social, with Goldman Sachs reducing it from $24.00 to $21.00 and maintaining a "neutral" rating.
• Insider transactions included CEO Ryan Paul Barretto selling 16,800 shares at approximately $21.16, reducing his stake by 12.30%.

Sprout Social (NASDAQ:SPT - Get Free Report) updated its FY 2025 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of 0.710-0.750 for the period, compared to the consensus estimate of 0.732. The company issued revenue guidance of $452.9 million-$455.9 million, compared to the consensus revenue estimate of $451.5 million. Sprout Social also updated its Q3 2025 guidance to 0.150-0.160 EPS.

Analysts Set New Price Targets

A number of research firms recently commented on SPT. Barclays decreased their target price on Sprout Social from $34.00 to $26.00 and set an "overweight" rating on the stock in a research report on Monday, April 21st. Canaccord Genuity Group decreased their price objective on Sprout Social from $30.00 to $25.00 and set a "buy" rating on the stock in a research report on Thursday. The Goldman Sachs Group decreased their price objective on Sprout Social from $24.00 to $21.00 and set a "neutral" rating on the stock in a research report on Thursday. Cantor Fitzgerald restated a "neutral" rating and set a $24.00 price objective on shares of Sprout Social in a research report on Tuesday, June 3rd. Finally, Needham & Company LLC restated a "buy" rating and set a $32.00 price objective on shares of Sprout Social in a research report on Wednesday, May 28th. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating and six have given a buy rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $27.42.

Sprout Social Trading Down 4.1%

Shares of SPT stock traded down $0.57 on Monday, reaching $13.37. 1,115,164 shares of the company's stock were exchanged, compared to its average volume of 743,352. Sprout Social has a 52 week low of $13.33 and a 52 week high of $36.30. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 0.08. The stock has a market capitalization of $777.87 million, a PE ratio of -14.07 and a beta of 0.99. The company's fifty day simple moving average is $19.49 and its 200 day simple moving average is $22.85.

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

Insider Transactions at Sprout Social

In related news, Director Karen Walker sold 5,000 shares of the stock in a transaction that occurred on Monday, July 14th. The stock was sold at an average price of $19.05, for a total value of $95,250.00. Following the transaction, the director owned 28,963 shares of the company's stock, valued at $551,745.15. This represents a 14.72% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Ryan Paul Barretto sold 16,800 shares of the stock in a transaction that occurred on Tuesday, July 8th. The stock was sold at an average price of $21.16, for a total value of $355,488.00. Following the completion of the transaction, the chief executive officer directly owned 119,775 shares in the company, valued at approximately $2,534,439. This trade represents a 12.30% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 112,375 shares of company stock worth $2,389,535. Insiders own 10.12% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Goldman Sachs Group Inc. grew its stake in Sprout Social by 23.0% in the first quarter. Goldman Sachs Group Inc. now owns 325,750 shares of the company's stock worth $7,163,000 after purchasing an additional 60,947 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in Sprout Social by 2.4% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 53,127 shares of the company's stock valued at $1,168,000 after acquiring an additional 1,265 shares in the last quarter. Brighton Jones LLC boosted its position in Sprout Social by 391.7% during the 4th quarter. Brighton Jones LLC now owns 35,985 shares of the company's stock valued at $1,105,000 after acquiring an additional 28,667 shares in the last quarter. AQR Capital Management LLC bought a new stake in Sprout Social during the 1st quarter valued at $365,000. Finally, Empowered Funds LLC bought a new stake in Sprout Social during the 1st quarter valued at $325,000.

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.