Sprout Social (NASDAQ:SPT) Reaches New 1-Year Low - Should You Sell?

Key Points

• Sprout Social's stock hit a new 52-week low of $16.18, with trading volumes reaching 612,248 shares and a current average rating of "Hold" from analysts.
• Despite the falling stock price, several analysts have provided mixed ratings, with Barclays and Goldman Sachs lowering their price targets, while Needham & Company maintained a "buy" rating with a target of $32.00.
• Insider trading activity included significant sales by both the Director and CEO, indicating a decrease in their ownership stakes, with a total of 112,375 shares sold by insiders over the past 90 days.

Sprout Social, Inc. (NASDAQ:SPT - Get Free Report)'s stock price hit a new 52-week low on Wednesday . The stock traded as low as $16.18 and last traded at $16.23, with a volume of 612248 shares changing hands. The stock had previously closed at $16.73.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on the company. Oppenheimer lowered their price target on Sprout Social from $32.00 to $23.00 and set an "outperform" rating for the company in a research report on Thursday. Cantor Fitzgerald reaffirmed a "neutral" rating and issued a $24.00 target price on shares of Sprout Social in a report on Tuesday, June 3rd. The Goldman Sachs Group dropped their target price on shares of Sprout Social from $24.00 to $21.00 and set a "neutral" rating on the stock in a research note on Thursday. Needham & Company LLC reissued a "buy" rating and set a $32.00 price target on shares of Sprout Social in a research report on Wednesday, May 28th. Finally, Morgan Stanley decreased their price objective on shares of Sprout Social from $30.00 to $22.00 and set an "equal weight" rating for the company in a report on Wednesday, April 16th. One equities research analyst has rated the stock with a sell rating, five have assigned a hold rating and six have issued a buy rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $27.42.

Sprout Social Stock Performance

The business's 50 day simple moving average is $19.81 and its two-hundred day simple moving average is $23.26. The firm has a market capitalization of $857.57 million, a PE ratio of -15.52 and a beta of 0.99. The company has a current ratio of 0.97, a quick ratio of 0.97 and a debt-to-equity ratio of 0.11.

Sprout Social (NASDAQ:SPT - Get Free Report) last posted its quarterly earnings data on Wednesday, August 6th. The company reported $0.18 EPS for the quarter, beating analysts' consensus estimates of $0.15 by $0.03. The company had revenue of $111.78 million during the quarter, compared to analysts' expectations of $110.93 million. Sprout Social had a negative return on equity of 26.65% and a negative net margin of 12.70%. Sprout Social's revenue for the quarter was up 12.5% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.09 earnings per share. Research analysts expect that Sprout Social, Inc. will post -0.99 earnings per share for the current fiscal year.

Insider Transactions at Sprout Social

In related news, Director Karen Walker sold 5,000 shares of the business's stock in a transaction that occurred on Monday, July 14th. The shares were sold at an average price of $19.05, for a total transaction of $95,250.00. Following the completion of the sale, the director directly owned 28,963 shares in the company, valued at approximately $551,745.15. The trade was a 14.72% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Justyn Russell Howard sold 40,000 shares of the stock in a transaction that occurred on Tuesday, July 8th. The stock was sold at an average price of $21.12, for a total transaction of $844,800.00. Following the completion of the transaction, the insider owned 7,417 shares in the company, valued at $156,647.04. The trade was a 84.36% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 112,375 shares of company stock worth $2,389,535 in the last quarter. Company insiders own 10.12% of the company's stock.

Hedge Funds Weigh In On Sprout Social

Institutional investors and hedge funds have recently bought and sold shares of the stock. Versant Capital Management Inc raised its holdings in Sprout Social by 1,319.4% during the first quarter. Versant Capital Management Inc now owns 1,462 shares of the company's stock valued at $32,000 after acquiring an additional 1,359 shares during the period. Quarry LP raised its stake in Sprout Social by 85.2% during the 1st quarter. Quarry LP now owns 1,463 shares of the company's stock valued at $32,000 after purchasing an additional 673 shares during the period. First Horizon Advisors Inc. lifted its holdings in Sprout Social by 78.9% in the 2nd quarter. First Horizon Advisors Inc. now owns 1,531 shares of the company's stock worth $32,000 after purchasing an additional 675 shares in the last quarter. Caitong International Asset Management Co. Ltd bought a new position in Sprout Social in the 1st quarter worth approximately $47,000. Finally, CWM LLC grew its holdings in Sprout Social by 266.3% during the 2nd quarter. CWM LLC now owns 3,934 shares of the company's stock valued at $82,000 after buying an additional 2,860 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.