Sprout Social (NASDAQ:SPT) Shares Up 6% - Here's Why

Key Points

• Sprout Social's shares increased by 6% during mid-day trading, reaching a high of $11.35, compared to the previous close of $10.80.
• Multiple brokerages have recently downgraded their target prices for Sprout Social, with Oppenheimer setting a new target of $23.00, down from $32.00.
• The company reported a quarterly revenue of $111.78 million, exceeding analysts' expectations, and achieved earnings per share of $0.18, beating the consensus estimate by $0.03.

Sprout Social, Inc. (NASDAQ:SPT - Get Free Report) shares shot up 6% during mid-day trading on Tuesday . The company traded as high as $11.35 and last traded at $11.45. 106,650 shares changed hands during mid-day trading, a decline of 87% from the average session volume of 822,694 shares. The stock had previously closed at $10.80.

Analyst Upgrades and Downgrades

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

Sprout Social Stock Up 4.8%

The stock's fifty day moving average is $13.73 and its two-hundred day moving average is $17.99. 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 company has a market capitalization of $665.85 million, a PE ratio of -11.99 and a beta of 0.84.

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

Insider Transactions at Sprout Social

In related news, insider Justyn Russell Howard sold 20,000 shares of the business's stock in a transaction dated Tuesday, October 7th. The stock was sold at an average price of $11.81, for a total value of $236,200.00. Following the sale, the insider directly owned 7,417 shares in the company, valued at approximately $87,594.77. The trade was a 72.95% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. In the last quarter, insiders sold 50,566 shares of company stock valued at $695,181. Insiders own 10.12% of the company's stock.

Institutional Investors Weigh In On Sprout Social

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Quarry LP increased its position in shares of Sprout Social by 85.2% during 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 during the period. First Horizon Advisors Inc. increased 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 buying an additional 675 shares during the period. PNC Financial Services Group Inc. increased its position in shares of Sprout Social by 8.7% during the first quarter. PNC Financial Services Group Inc. now owns 9,367 shares of the company's stock valued at $206,000 after buying an additional 747 shares during the period. Diversified Trust Co increased its position in shares of Sprout Social by 6.1% during the third quarter. Diversified Trust Co now owns 17,982 shares of the company's stock valued at $232,000 after buying an additional 1,040 shares during the period. Finally, Rhumbline Advisers increased its position in shares of Sprout Social by 1.6% during the second quarter. Rhumbline Advisers now owns 78,240 shares of the company's stock valued at $1,636,000 after buying an additional 1,264 shares during the period.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.