Sprout Social (NASDAQ:SPT) Sets New 52-Week Low - Time to Sell?

Key Points

• Sprout Social's shares reached a new 52-week low of $10.33 during trading, currently priced at $10.63, with significant trading volume of over 1.28 million shares.
• Recent analyst ratings show a mix of sentiment, with a average rating of "Hold" and a target price of $27.36, with multiple price target reductions from various analysts.
• The company reported positive earnings, with an EPS of $0.18 exceeding expectations, while also noting a negative net margin of 12.70% and a decrease in insider holdings.

Shares of Sprout Social, Inc. (NASDAQ:SPT - Get Free Report) hit a new 52-week low during mid-day trading on Monday . The stock traded as low as $10.33 and last traded at $10.63, with a volume of 1287319 shares. The stock had previously closed at $10.82.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on the stock. Weiss Ratings restated a "sell (e+)" rating on shares of Sprout Social in a research note on Wednesday, October 8th. The Goldman Sachs Group reduced their price objective on shares of Sprout Social from $24.00 to $21.00 and set a "neutral" rating for the company in a research note on Thursday, August 7th. Oppenheimer reduced their price objective on shares of Sprout Social from $32.00 to $23.00 and set an "outperform" rating for the company in a research note on Thursday, August 7th. Canaccord Genuity Group cut their price target on shares of Sprout Social from $30.00 to $25.00 and set a "buy" rating for the company in a report on Thursday, August 7th. Finally, Zacks Research lowered shares of Sprout Social from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, August 13th. Six equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $27.36.

Sprout Social Price Performance

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's 50-day moving average is $13.78 and its 200-day moving average is $18.06. The company has a market cap of $632.80 million, a PE ratio of -11.32 and a beta of 0.84.

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

Insider Activity

In other news, insider Justyn Russell Howard sold 20,000 shares of the firm's stock in a transaction dated Tuesday, October 7th. The shares were sold at an average price of $11.81, for a total value of $236,200.00. Following the completion of the sale, the insider owned 7,417 shares in the company, valued at approximately $87,594.77. This trade represents a 72.95% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. In the last three months, insiders have sold 50,566 shares of company stock valued at $695,181. 10.12% of the stock is currently owned by company insiders.

Institutional Trading of Sprout Social

Several large investors have recently bought and sold shares of the stock. Quarry LP lifted 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 acquiring an additional 673 shares during the period. First Horizon Advisors Inc. grew its holdings in shares of Sprout Social by 78.9% in the second quarter. First Horizon Advisors Inc. now owns 1,531 shares of the company's stock valued at $32,000 after purchasing an additional 675 shares during the period. Caitong International Asset Management Co. Ltd purchased a new position in Sprout Social during the first quarter worth about $47,000. CWM LLC raised its holdings in Sprout Social by 266.3% in the second quarter. CWM LLC now owns 3,934 shares of the company's stock valued at $82,000 after acquiring an additional 2,860 shares in the last quarter. Finally, AlphaQuest LLC lifted its stake in Sprout Social by 205.1% in the first quarter. AlphaQuest LLC now owns 4,479 shares of the company's stock worth $98,000 after acquiring an additional 3,011 shares during 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.

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