Sprout Social (NASDAQ:SPT) Shares Down 5.4% - What's Next?

Key Points

• Sprout Social's stock fell 5.4% on Tuesday, trading as low as $13.42 before closing at $13.06, with a notable decline in trading volume.
• Several analysts have revised their price targets for Sprout Social, with new targets ranging from $21.00 to $25.00 and a consensus target price of $27.36, reflecting a shift in market outlook.
• The company recently reported a quarterly revenue of $111.78 million, representing a 12.5% year-over-year increase, while also surpassing EPS estimates with a reported $0.18.

Sprout Social, Inc. (NASDAQ:SPT - Get Free Report)'s stock price fell 5.4% during trading on Tuesday . The stock traded as low as $13.42 and last traded at $13.06. 510,424 shares traded hands during trading, a decline of 34% from the average session volume of 773,913 shares. The stock had previously closed at $13.81.

Analysts Set New Price Targets

Several research analysts have commented on the stock. Zacks Research downgraded shares of Sprout Social from a "strong-buy" rating to a "hold" rating in a report on Wednesday, August 13th. 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 report on Thursday, August 7th. Oppenheimer lowered their target price on shares of Sprout Social from $32.00 to $23.00 and set an "outperform" rating on the stock in a research note on Thursday, August 7th. Cantor Fitzgerald reissued a "neutral" rating and issued a $24.00 price target on shares of Sprout Social in a research note on Tuesday, June 3rd. Finally, The Goldman Sachs Group dropped their price objective on shares of Sprout Social from $24.00 to $21.00 and set a "neutral" rating for the company in a report on Thursday, August 7th. Six investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to MarketBeat, Sprout Social presently has an average rating of "Moderate Buy" and a consensus target price of $27.36.

Sprout Social Price Performance

The stock has a market capitalization of $762.47 million, a PE ratio of -13.58 and a beta of 0.86. The firm's 50 day simple moving average is $15.40 and its 200 day simple moving average is $19.25. The company has a debt-to-equity ratio of 0.08, a current ratio of 1.00 and a quick ratio of 1.00.

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

Insider Activity at Sprout Social

In other news, CEO Ryan Paul Barretto sold 16,800 shares of the firm's stock in a transaction dated Tuesday, July 8th. The shares were sold at an average price of $21.16, for a total transaction of $355,488.00. Following the sale, the chief executive officer owned 119,775 shares of the company's stock, valued at $2,534,439. This trade represents a 12.30% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Justyn Russell Howard sold 20,000 shares of the firm's stock in a transaction dated Friday, September 5th. The shares were sold at an average price of $14.94, for a total transaction of $298,800.00. Following the sale, the insider directly owned 7,417 shares in the company, valued at approximately $110,809.98. The trade was a 72.95% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 92,366 shares of company stock valued at $1,754,519. 10.12% of the stock is owned by insiders.

Institutional Trading of Sprout Social

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Versant Capital Management Inc boosted its position in shares of Sprout Social by 1,319.4% in 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 holdings in Sprout Social by 85.2% in 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 last quarter. First Horizon Advisors Inc. grew its position in shares of Sprout Social by 78.9% during 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 in the last quarter. Caitong International Asset Management Co. Ltd bought a new stake in shares of Sprout Social in the first quarter worth about $47,000. Finally, CWM LLC boosted its stake in Sprout Social by 266.3% during 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 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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