Sprout Social (NASDAQ:SPT) Stock Price Down 3.9% - Should You Sell?

Key Points

• Sprout Social shares fell 3.9% to $9.68 in thin trading, with volume down 95% from the average session.
• Analyst views remain mixed: the stock carries a consensus “Hold” rating and a $10.43 price target, with ratings ranging from Strong Buy to Sell.
• The company beat quarterly expectations, reporting $0.26 in EPS versus $0.16 expected and revenue of $123.85 million, although it continues to post negative net margins and return on equity.

Sprout Social, Inc. (NASDAQ:SPT - Get Free Report) dropped 3.9% during mid-day trading on Friday . The company traded as low as $9.62 and last traded at $9.68. Approximately 79,870 shares were traded during mid-day trading, a decline of 95% from the average session volume of 1,493,338 shares. The stock had previously closed at $10.07.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on SPT shares. KeyCorp upped their target price on Sprout Social from $6.00 to $7.00 and gave the company an "underweight" rating in a report on Friday, August 7th. Barclays boosted their price objective on Sprout Social from $9.00 to $12.00 and gave the stock an "overweight" rating in a report on Tuesday, August 11th. Morgan Stanley raised their target price on shares of Sprout Social from $10.00 to $11.00 and gave the stock an "equal weight" rating in a report on Thursday, August 13th. Zacks Research upgraded shares of Sprout Social from a "hold" rating to a "strong-buy" rating in a report on Monday, August 10th. Finally, Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Sprout Social in a research note on Friday, July 17th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $10.43.

Sprout Social Stock Performance

The firm's fifty day moving average is $8.28 and its 200 day moving average is $7.12. The firm has a market capitalization of $611.98 million, a price-to-earnings ratio of -20.20 and a beta of 0.97. The company has a debt-to-equity ratio of 0.14, a current ratio of 1.03 and a quick ratio of 1.03.

Sprout Social (NASDAQ:SPT - Get Free Report) last released its earnings results on Thursday, August 6th. The company reported $0.26 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.16 by $0.10. Sprout Social had a negative net margin of 6.13% and a negative return on equity of 8.80%. The company had revenue of $123.85 million during the quarter, compared to the consensus estimate of $122.19 million. Sprout Social has set its FY 2026 guidance at 1.110-1.150 EPS and its Q3 2026 guidance at 0.290-0.300 EPS. On average, analysts predict that Sprout Social, Inc. will post -0.02 EPS for the current fiscal year.

Insider Buying and Selling

In other Sprout Social news, insider Justyn Russell Howard sold 40,000 shares of the company's stock in a transaction dated Friday, July 10th. The stock was sold at an average price of $8.28, for a total value of $331,200.00. Following the transaction, the insider directly owned 7,417 shares of the company's stock, valued at $61,412.76. This represents a 84.36% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 9.60% of the stock is owned by company insiders.

Hedge Funds Weigh In On Sprout Social

Several hedge funds and other institutional investors have recently added to or reduced their stakes in SPT. Proficio Capital Partners LLC acquired a new stake in Sprout Social in the second quarter valued at approximately $119,000. Headlands Technologies LLC bought a new position in shares of Sprout Social during the 2nd quarter valued at $111,000. Haveli Investment Management LLC acquired a new stake in shares of Sprout Social in the 2nd quarter valued at $16,405,033,000. Bank of New York Mellon Corp bought a new stake in Sprout Social in the second quarter worth $1,658,000. Finally, GAMMA Investing LLC boosted its holdings in Sprout Social by 115.8% in the second quarter. GAMMA Investing LLC now owns 6,368 shares of the company's stock worth $48,000 after purchasing an additional 3,417 shares in the last quarter.

About Sprout Social

Sprout Social NASDAQ: SPT is a Chicago-based software company specializing in social media management solutions for businesses of all sizes. The company provides a cloud-based platform designed to help organizations improve their social media presence through a suite of tools for content scheduling, community engagement, social listening and analytics. Sprout Social's platform is built to streamline the workflows of marketing, customer care and public relations teams by providing a centralized hub for managing multiple social channels.

The company's product offerings include publishing and scheduling capabilities that allow users to plan and automate social content across networks such as Facebook, Instagram, Twitter, LinkedIn and Pinterest.

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