Sprout Social (NASDAQ:SPT) Hits New 52-Week Low - Here's Why

Key Points

• Sprout Social's stock has reached a new 12-month low, trading as low as $13.33, raising concerns among investors about whether it's time to sell.
• Analysts have significantly lowered their target prices, with estimates ranging from $21.00 to $25.00, reflecting a mixed consensus rating of "Hold."
• The company reported earnings of $0.18 per share for the last quarter, exceeding analyst expectations, but continues to face challenges with a negative return on equity of 25.95%.

Sprout Social, Inc. (NASDAQ:SPT - Get Free Report)'s share price reached a new 52-week low during trading on Tuesday . The stock traded as low as $13.33 and last traded at $13.37, with a volume of 1115164 shares. The stock had previously closed at $13.94.

Analyst Ratings Changes

Several equities research analysts have recently commented on the company. Oppenheimer cut their price target on Sprout Social from $32.00 to $23.00 and set an "outperform" rating for the company in a research note on Thursday, August 7th. Barclays cut their price objective on Sprout Social from $34.00 to $26.00 and set an "overweight" rating for the company in a research report on Monday, April 21st. Cantor Fitzgerald reiterated a "neutral" rating and issued a $24.00 price objective on shares of Sprout Social in a research report on Tuesday, June 3rd. Canaccord Genuity Group cut their price objective on Sprout Social from $30.00 to $25.00 and set a "buy" rating for the company in a research report on Thursday, August 7th. Finally, The Goldman Sachs Group cut their price objective on Sprout Social from $24.00 to $21.00 and set a "neutral" rating for the company in a research report on Thursday, August 7th. 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 company. According to MarketBeat.com, Sprout Social has a consensus rating of "Hold" and a consensus target price of $27.42.

Sprout Social Stock Up 1.1%

The firm has a market capitalization of $820.92 million, a price-to-earnings ratio of -14.85 and a beta of 0.99. 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 firm has a 50 day moving average price of $18.85 and a two-hundred day moving average price of $22.45.

Sprout Social (NASDAQ:SPT - Get Free Report) last released its quarterly earnings data 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. The business had revenue of $111.78 million for the quarter, compared to analyst estimates of $110.93 million. Sprout Social had a negative return on equity of 25.95% and a negative net margin of 12.70%. The company's revenue was up 12.5% compared to the same quarter last year. During the same period in the previous year, the company posted $0.09 EPS. On average, equities analysts expect that Sprout Social, Inc. will post -0.99 earnings per share for the current fiscal year.

Insider Activity at Sprout Social

In other news, CEO Ryan Paul Barretto sold 16,800 shares of Sprout Social 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 owned 119,775 shares in the company, valued at approximately $2,534,439. This trade represents a 12.30% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Karen Walker sold 5,000 shares of Sprout Social 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 completion of the transaction, the director owned 28,963 shares of the company's stock, valued at approximately $551,745.15. The trade was a 14.72% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 112,375 shares of company stock worth $2,389,535. 10.12% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Versant Capital Management Inc raised its position in shares of Sprout Social by 1,319.4% during the first quarter. Versant Capital Management Inc now owns 1,462 shares of the company's stock worth $32,000 after purchasing an additional 1,359 shares during the period. Quarry LP increased its position in Sprout Social by 85.2% in the 1st quarter. Quarry LP now owns 1,463 shares of the company's stock worth $32,000 after purchasing an additional 673 shares during the last quarter. First Horizon Advisors Inc. increased its position 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 during the last quarter. Caitong International Asset Management Co. Ltd acquired a new position in Sprout Social in the 1st quarter worth about $47,000. Finally, CWM LLC boosted its stake in shares of Sprout Social by 266.3% during the 2nd quarter. CWM LLC now owns 3,934 shares of the company's stock worth $82,000 after acquiring an additional 2,860 shares in 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.