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

Sprout Social, Inc. (NASDAQ:SPT - Get Free Report) gapped down before the market opened on Tuesday . The stock had previously closed at $21.70, but opened at $21.13. Sprout Social shares last traded at $21.21, with a volume of 89,975 shares.

Analyst Ratings Changes

SPT has been the topic of several recent analyst reports. Canaccord Genuity Group dropped their target price on Sprout Social from $40.00 to $35.00 and set a "buy" rating on the stock in a research report on Wednesday, February 26th. Oppenheimer cut their price objective on Sprout Social from $38.00 to $32.00 and set an "outperform" rating for the company in a research report on Friday, May 9th. Piper Sandler reduced their target price on Sprout Social from $29.00 to $27.00 and set a "neutral" rating for the company in a report on Wednesday, February 26th. The Goldman Sachs Group lowered their price target on shares of Sprout Social from $29.00 to $23.00 and set a "neutral" rating on the stock in a research note on Thursday, April 17th. Finally, Scotiabank reduced their price objective on shares of Sprout Social from $28.00 to $25.00 and set a "sector perform" rating for the company in a research note on Thursday, February 27th. One equities research analyst has rated the stock with a sell rating, six have given a hold rating and six have given a buy rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $30.00.

Sprout Social Price Performance

The company has a market capitalization of $1.26 billion, a PE ratio of -18.10 and a beta of 1.04. The company has a current ratio of 0.96, a quick ratio of 0.96 and a debt-to-equity ratio of 0.19. The company's 50 day moving average price is $21.27 and its 200-day moving average price is $27.14.

Sprout Social (NASDAQ:SPT - Get Free Report) last announced its quarterly 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. Sprout Social had a negative net margin of 17.24% and a negative return on equity of 40.94%. The company had revenue of $109.29 million for the quarter, compared to analyst estimates of $107.63 million. During the same quarter last year, the business earned $0.10 earnings per share. Sprout Social's revenue was up 12.9% compared to the same quarter last year. On average, sell-side analysts forecast that Sprout Social, Inc. will post -0.99 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Sprout Social news, Director Aaron Edward Frederick Rankin sold 23,646 shares of the company's stock in a transaction that occurred on Monday, March 17th. The stock was sold at an average price of $24.58, for a total value of $581,218.68. Following the completion of the sale, the director now directly owns 42,122 shares in the company, valued at $1,035,358.76. This represents a 35.95% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Justyn Russell Howard sold 40,000 shares of the stock in a transaction on Tuesday, June 3rd. The shares were sold at an average price of $21.65, for a total value of $866,000.00. Following the transaction, the insider now directly owns 7,417 shares of the company's stock, valued at approximately $160,578.05. The trade was a 84.36% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 176,021 shares of company stock worth $3,738,636. 10.12% of the stock is owned by company insiders.

Institutional Investors Weigh In On Sprout Social

Institutional investors and hedge funds have recently bought and sold shares of the business. Versant Capital Management Inc raised its holdings in shares of Sprout Social by 1,319.4% in 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 increased its holdings in shares of Sprout Social by 85.2% in the first quarter. Quarry LP now owns 1,463 shares of the company's stock valued at $32,000 after buying an additional 673 shares in the last quarter. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Sprout Social during the 1st quarter valued at $47,000. US Bancorp DE lifted its position in shares of Sprout Social by 2,392.6% during the 4th quarter. US Bancorp DE now owns 1,695 shares of the company's stock valued at $52,000 after acquiring an additional 1,627 shares during the last quarter. Finally, KBC Group NV boosted its stake in shares of Sprout Social by 77.1% during the 4th quarter. KBC Group NV now owns 2,525 shares of the company's stock worth $78,000 after acquiring an additional 1,099 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.