Sprout Social (NASDAQ:SPT) Shares Down 5.4% - Here's What Happened

Key Points

• Sprout Social's stock declined by 5.4% to close at $14.32, with trading volume down 59% compared to its average session.
• Analysts have mixed opinions on the stock; Goldman Sachs reduced its price target significantly while others maintain bullish ratings, leading to a consensus price target of $27.36.
• The company reported earnings of $0.18 per share, surpassing expectations, with a revenue increase of 12.5% year-over-year, although it shows negative returns and margins.

Sprout Social, Inc. (NASDAQ:SPT - Get Free Report)'s stock price traded down 5.4% on Wednesday . The company traded as low as $14.44 and last traded at $14.32. 298,518 shares traded hands during trading, a decline of 59% from the average session volume of 727,448 shares. The stock had previously closed at $15.14.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on the company. The Goldman Sachs Group reduced their price target 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. Needham & Company LLC reaffirmed a "buy" rating and set a $32.00 price target on shares of Sprout Social in a research report on Wednesday, May 28th. Cantor Fitzgerald reaffirmed a "neutral" rating and set a $24.00 price target on shares of Sprout Social in a research report on Tuesday, June 3rd. Zacks Research downgraded Sprout Social from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, August 13th. Finally, Oppenheimer reduced 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, August 7th. Six research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $27.36.

Sprout Social Trading Down 7.4%

The business has a 50 day moving average of $17.00 and a two-hundred day moving average of $20.42. 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 market cap of $824.17 million, a P/E ratio of -14.75 and a beta of 0.86.

Sprout Social (NASDAQ:SPT - Get Free Report) last posted its quarterly earnings results on Wednesday, August 6th. The company reported $0.18 earnings per share for the quarter, beating 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 analysts' expectations of $110.93 million. During the same quarter in the prior year, the business earned $0.09 EPS. The firm's revenue for the quarter was up 12.5% on a year-over-year basis. Analysts predict that Sprout Social, Inc. will post -0.99 earnings per share for the current year.

Insiders Place Their Bets

In other Sprout Social news, CEO Ryan Paul Barretto sold 16,800 shares of the stock in a transaction on Tuesday, July 8th. The stock was sold at an average price of $21.16, for a total transaction of $355,488.00. Following the transaction, the chief executive officer owned 119,775 shares in the company, valued at $2,534,439. This trade represents a 12.30% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Karen Walker sold 5,000 shares of the stock in a transaction 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 transaction, the director owned 28,963 shares in the company, valued at $551,745.15. The trade was a 14.72% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 92,366 shares of company stock worth $1,754,519 in the last 90 days. Company insiders own 10.12% of the company's stock.

Institutional Trading of Sprout Social

Large investors have recently modified their holdings of the stock. Versant Capital Management Inc grew its holdings in shares of Sprout Social by 1,319.4% during the 1st 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 in the last quarter. Quarry LP grew its holdings in shares of Sprout Social by 85.2% during the 1st quarter. Quarry LP now owns 1,463 shares of the company's stock worth $32,000 after purchasing an additional 673 shares in the last quarter. First Horizon Advisors Inc. grew its holdings in shares of Sprout Social by 78.9% during 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 acquired a new stake in shares of Sprout Social during the 1st quarter worth $47,000. Finally, CWM LLC boosted its stake 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 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.

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