Sprout Social (NASDAQ:SPT) Stock Price Up 5.9% - What's Next?

Key Points

• Sprout Social's stock rose by 5.9% on Monday, reaching a price of $14.46, although trading volume dropped significantly to 185,105 shares compared to its average of 734,645.
• Analysts have mixed ratings for the company, with a consensus rating of "Moderate Buy" and a target price of $27.36, despite some downgrades from firms like Zacks Research.
• Recent financial results showed that Sprout Social reported earnings of $0.18 per share, exceeding estimates, while revenue rose 12.5% from the previous year at $111.78 million.

Shares of Sprout Social, Inc. (NASDAQ:SPT - Get Free Report) rose 5.9% on Monday . The company traded as high as $14.42 and last traded at $14.46. Approximately 185,105 shares changed hands during trading, a decline of 75% from the average daily volume of 734,645 shares. The stock had previously closed at $13.65.

Analyst Upgrades and Downgrades

A number of analysts have recently commented on the company. Needham & Company LLC reissued a "buy" rating and issued a $32.00 price target on shares of Sprout Social in a research report on Wednesday, May 28th. Cantor Fitzgerald reissued a "neutral" rating and issued a $24.00 price target on shares of Sprout Social in a research report on Tuesday, June 3rd. Zacks Research cut Sprout Social from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, August 13th. Oppenheimer lowered their price objective on Sprout Social from $32.00 to $23.00 and set an "outperform" rating on the stock in a research report on Thursday, August 7th. Finally, Canaccord Genuity Group lowered their price objective on Sprout Social from $30.00 to $25.00 and set a "buy" rating on the stock in a research report on Thursday, August 7th. Six investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat, Sprout Social has a consensus rating of "Moderate Buy" and a consensus target price of $27.36.

Sprout Social Stock Performance

The firm has a market capitalization of $825.69 million, a PE ratio of -14.78 and a beta of 0.86. 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 business's 50 day simple moving average is $16.57 and its two-hundred day simple moving average is $20.08.

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

Insider Transactions at Sprout Social

In other news, Director Karen Walker sold 5,000 shares of the company's stock in a transaction on Monday, July 14th. The stock was sold at an average price of $19.05, for a total value of $95,250.00. Following the completion of the sale, the director directly owned 28,963 shares in the company, valued at $551,745.15. This represents a 14.72% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, insider Justyn Russell Howard sold 20,000 shares of the company's stock in a transaction on Friday, September 5th. The stock was sold at an average price of $14.94, for a total value of $298,800.00. Following the completion of the sale, the insider owned 7,417 shares of the company's stock, valued at $110,809.98. This trade represents a 72.95% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 92,366 shares of company stock worth $1,754,519 in the last three months. Corporate insiders own 10.12% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Zurcher Kantonalbank Zurich Cantonalbank lifted its holdings in shares of Sprout Social by 11.2% in the 1st quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 16,976 shares of the company's stock valued at $373,000 after acquiring an additional 1,703 shares during the last quarter. Cubist Systematic Strategies LLC lifted its holdings in shares of Sprout Social by 633.2% in the 1st quarter. Cubist Systematic Strategies LLC now owns 85,056 shares of the company's stock valued at $1,870,000 after acquiring an additional 73,456 shares during the last quarter. Brighton Jones LLC lifted its holdings in shares of Sprout Social by 391.7% in the 4th quarter. Brighton Jones LLC now owns 35,985 shares of the company's stock valued at $1,105,000 after acquiring an additional 28,667 shares during the last quarter. Rhumbline Advisers lifted its holdings in shares of Sprout Social by 9.6% in the 1st quarter. Rhumbline Advisers now owns 76,976 shares of the company's stock valued at $1,693,000 after acquiring an additional 6,774 shares during the last quarter. Finally, Teacher Retirement System of Texas bought a new stake in Sprout Social in the first quarter worth about $363,000.

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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