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

Sprout Social, Inc. (NASDAQ:SPT - Get Free Report)'s share price 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 changing hands.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on SPT. Canaccord Genuity Group reduced their price objective on Sprout Social from $40.00 to $35.00 and set a "buy" rating for the company in a research report on Wednesday, February 26th. Morgan Stanley cut their target price on Sprout Social from $30.00 to $22.00 and set an "equal weight" rating on the stock in a research note on Wednesday, April 16th. Stifel Nicolaus reduced their price target on Sprout Social from $45.00 to $34.00 and set a "buy" rating for the company in a research report on Wednesday, February 26th. Piper Sandler lowered their price target on Sprout Social from $29.00 to $27.00 and set a "neutral" rating on the stock in a report on Wednesday, February 26th. Finally, Cantor Fitzgerald restated a "neutral" rating and set a $24.00 price objective on shares of Sprout Social in a research note on Tuesday. One equities research analyst has rated the stock with a sell rating, six have assigned a hold rating and six have given a buy rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $30.00.

Sprout Social Stock Down 0.4%

The company has a debt-to-equity ratio of 0.19, a quick ratio of 0.96 and a current ratio of 0.96. The stock's fifty day simple moving average is $21.27 and its two-hundred day simple moving average is $27.19. The company has a market capitalization of $1.28 billion, a price-to-earnings ratio of -18.35 and a beta of 1.04.

Sprout Social (NASDAQ:SPT - Get Free Report) last issued its earnings results on Thursday, May 8th. The company reported $0.22 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.15 by $0.07. The business had revenue of $109.29 million for the quarter, compared to analysts' expectations of $107.63 million. Sprout Social had a negative return on equity of 40.94% and a negative net margin of 17.24%. The company's quarterly revenue was up 12.9% on a year-over-year basis. During the same period in the previous year, the firm posted $0.10 EPS. On average, sell-side analysts anticipate that Sprout Social, Inc. will post -0.99 EPS for the current year.

Insider Buying and Selling

In other news, insider Justyn Russell Howard sold 40,000 shares of the stock in a transaction on Friday, April 4th. The stock was sold at an average price of $19.99, for a total value of $799,600.00. Following the completion of the sale, the insider now owns 7,417 shares in the company, valued at $148,265.83. This represents a 84.36% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Aaron Edward Frederick Rankin sold 23,646 shares of Sprout Social stock in a transaction on Monday, March 17th. The shares were sold at an average price of $24.58, for a total value of $581,218.68. Following the transaction, the director now owns 42,122 shares in the company, valued at $1,035,358.76. This represents a 35.95% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 176,021 shares of company stock valued at $3,738,636. 10.12% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Sprout Social

A number of institutional investors have recently bought and sold shares of SPT. Barclays PLC lifted its position in shares of Sprout Social by 339.5% in the third quarter. Barclays PLC now owns 90,234 shares of the company's stock worth $2,623,000 after purchasing an additional 69,704 shares in the last quarter. Brighton Jones LLC lifted its position in Sprout Social by 391.7% in the 4th quarter. Brighton Jones LLC now owns 35,985 shares of the company's stock worth $1,105,000 after buying an additional 28,667 shares in the last quarter. KBC Group NV lifted its position in Sprout Social by 77.1% in the 4th quarter. KBC Group NV now owns 2,525 shares of the company's stock worth $78,000 after buying an additional 1,099 shares in the last quarter. Jennison Associates LLC boosted its stake in shares of Sprout Social by 0.3% during the 4th quarter. Jennison Associates LLC now owns 2,171,567 shares of the company's stock valued at $66,689,000 after buying an additional 7,311 shares during the period. Finally, Rhumbline Advisers grew its holdings in shares of Sprout Social by 2.1% during the 4th quarter. Rhumbline Advisers now owns 70,202 shares of the company's stock valued at $2,156,000 after acquiring an additional 1,446 shares in the last quarter.

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.