Sprout Social (NASDAQ:SPT) Sets New 1-Year Low - What's Next?

Key Points

• Sprout Social's shares hit a new 52-week low at $12.77 during trading, down from a previous close of $13.81.
• Analysts have recently downgraded their price targets for Sprout Social, with Canaccord Genuity setting a target of $25.00 and Goldman Sachs revising it down to $21.00, amidst a consensus rating of "Moderate Buy".
• The company reported earnings of $0.18 per share for the last quarter, exceeding expectations, but still recorded a negative return on equity of 25.95%.

Sprout Social, Inc. (NASDAQ:SPT - Get Free Report) shares reached a new 52-week low during trading on Wednesday . The company traded as low as $12.77 and last traded at $12.92, with a volume of 2034645 shares changing hands. The stock had previously closed at $13.81.

Analyst Ratings Changes

SPT has been the topic of a number of recent analyst reports. 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 report on Thursday, August 7th. Cantor Fitzgerald restated a "neutral" rating and set a $24.00 price target on shares of Sprout Social in a research note on Tuesday, June 3rd. Zacks Research cut Sprout Social from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, August 13th. Oppenheimer decreased their price target on Sprout Social from $32.00 to $23.00 and set an "outperform" rating on the stock in a research note on Thursday, August 7th. Finally, The Goldman Sachs Group decreased their price target on Sprout Social from $24.00 to $21.00 and set a "neutral" rating on the stock in a research note on Thursday, August 7th. Six analysts have rated the stock with a Buy rating and six have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $27.36.

Sprout Social Stock Down 6.4%

The business has a 50-day moving average price of $15.28 and a two-hundred day moving average price of $19.20. 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 firm has a market cap of $759.83 million, a PE ratio of -13.60 and a beta of 0.86.

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

Insider Transactions at Sprout Social

In other news, CEO Ryan Paul Barretto sold 16,800 shares of the company's stock in a transaction dated Tuesday, July 8th. The stock was sold at an average price of $21.16, for a total transaction of $355,488.00. Following the completion of the transaction, the chief executive officer directly owned 119,775 shares of the company's stock, valued at approximately $2,534,439. This represents a 12.30% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Justyn Russell Howard sold 20,000 shares of the stock in a transaction dated Friday, September 5th. The shares were sold at an average price of $14.94, for a total value of $298,800.00. Following the completion of the transaction, the insider owned 7,417 shares in the company, valued at approximately $110,809.98. The trade was a 72.95% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 92,366 shares of company stock valued at $1,754,519. 10.12% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Cubist Systematic Strategies LLC grew its holdings in shares of Sprout Social by 739.6% during the second quarter. Cubist Systematic Strategies LLC now owns 714,089 shares of the company's stock worth $14,932,000 after purchasing an additional 629,033 shares during the last quarter. Nuveen LLC purchased a new position in shares of Sprout Social during the first quarter worth about $13,131,000. Norges Bank purchased a new position in shares of Sprout Social during the second quarter worth about $10,694,000. Canada Pension Plan Investment Board grew its holdings in shares of Sprout Social by 20,382.0% during the second quarter. Canada Pension Plan Investment Board now owns 471,087 shares of the company's stock worth $9,850,000 after purchasing an additional 468,787 shares during the last quarter. Finally, Federated Hermes Inc. grew its holdings in shares of Sprout Social by 182.3% during the second quarter. Federated Hermes Inc. now owns 687,234 shares of the company's stock worth $14,370,000 after purchasing an additional 443,774 shares during the last quarter.

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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