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

Key Points

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Sprout Social, Inc. (NASDAQ:SPT - Get Free Report) reached a new 52-week low during mid-day trading on Thursday . The company traded as low as $18.00 and last traded at $17.99, with a volume of 34753 shares. The stock had previously closed at $18.59.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on SPT shares. Cantor Fitzgerald restated a "neutral" rating and set a $24.00 target price on shares of Sprout Social in a research note on Tuesday, June 3rd. Morgan Stanley dropped 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 research note on Wednesday, April 16th. Barclays dropped their price objective on shares of Sprout Social from $34.00 to $26.00 and set an "overweight" rating for the company in a research note on Monday, April 21st. Needham & Company LLC reiterated a "buy" rating and issued a $32.00 price objective on shares of Sprout Social in a research note on Wednesday, May 28th. Finally, Oppenheimer dropped their price objective on shares of Sprout Social from $38.00 to $32.00 and set an "outperform" rating for the company in a research note on Friday, May 9th. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating and six have assigned a buy rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $29.17.

Sprout Social Stock Up 1.3%

The firm's 50-day moving average price is $20.26 and its 200 day moving average price is $23.60. The company has a market capitalization of $975.27 million, a price-to-earnings ratio of -16.17 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 issued its earnings results on Thursday, May 8th. The company reported $0.22 EPS for the quarter, beating the consensus estimate of $0.15 by $0.07. The company had revenue of $109.29 million during the quarter, compared to analysts' expectations of $107.63 million. Sprout Social had a negative net margin of 14.25% and a negative return on equity of 31.03%. The business's revenue for the quarter was up 12.9% compared to the same quarter last year. During the same period in the previous year, the company earned $0.10 EPS. On average, sell-side analysts forecast that Sprout Social, Inc. will post -0.99 EPS for the current fiscal year.

Insider Buying and Selling

In related news, insider Justyn Russell Howard sold 40,000 shares of the company's stock in a transaction that occurred on Tuesday, July 8th. The shares were sold at an average price of $21.12, for a total transaction of $844,800.00. Following the completion of the transaction, the insider directly owned 7,417 shares in the company, valued at $156,647.04. This represents a 84.36% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Karen Walker sold 5,000 shares of the company's stock in a transaction that occurred on Monday, July 14th. The stock was sold at an average price of $19.05, for a total transaction of $95,250.00. Following the transaction, the director owned 28,963 shares of the company's stock, valued at approximately $551,745.15. This represents a 14.72% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 152,375 shares of company stock worth $3,221,935 in the last three months. 10.12% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Sprout Social

A number of institutional investors have recently added to or reduced their stakes in SPT. Brighton Jones LLC grew its holdings in 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 acquiring an additional 28,667 shares during the last quarter. Sei Investments Co. grew its holdings in Sprout Social by 3.0% during the 4th quarter. Sei Investments Co. now owns 35,893 shares of the company's stock worth $1,102,000 after acquiring an additional 1,038 shares during the last quarter. KLP Kapitalforvaltning AS bought a new stake in Sprout Social during the 4th quarter worth approximately $338,000. Vanguard Group Inc. grew its holdings in Sprout Social by 2.5% during the 4th quarter. Vanguard Group Inc. now owns 5,886,167 shares of the company's stock worth $180,764,000 after acquiring an additional 141,141 shares during the last quarter. Finally, Norges Bank bought a new stake in Sprout Social during the 4th quarter worth approximately $13,422,000.

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.