Sprout Social (NASDAQ:SPT) Trading 5.9% Higher - 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.

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

Wall Street Analyst Weigh In

SPT has been the subject of several recent analyst reports. Cantor Fitzgerald restated a "neutral" rating and set a $24.00 target price on shares of Sprout Social in a research note on Tuesday, June 3rd. Oppenheimer lowered their target price on shares of Sprout Social from $32.00 to $23.00 and set an "outperform" rating for the company in a report on Thursday, August 7th. The Goldman Sachs Group dropped their target price on shares of Sprout Social from $24.00 to $21.00 and set a "neutral" rating on the stock in a research report on Thursday, August 7th. Canaccord Genuity Group dropped their target price on shares of Sprout Social from $30.00 to $25.00 and set a "buy" rating on the stock in a research report on Thursday, August 7th. Finally, Needham & Company LLC reaffirmed a "buy" rating and issued a $32.00 target price on shares of Sprout Social in a research report on Wednesday, May 28th. Six research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company's stock. According to MarketBeat, Sprout Social currently has an average rating of "Moderate Buy" and an average price target of $27.36.

Sprout Social Price Performance

The stock's fifty day moving average price is $15.98 and its 200-day moving average price is $19.74. The company has a debt-to-equity ratio of 0.08, a quick ratio of 1.00 and a current ratio of 1.00. The firm has a market cap of $837.45 million, a PE ratio of -14.99 and a beta of 0.86.

Sprout Social (NASDAQ:SPT - Get Free Report) last announced its quarterly earnings results on Wednesday, August 6th. The company reported $0.18 earnings per share (EPS) for the quarter, beating 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 business had revenue of $111.78 million during the quarter, compared to the consensus estimate of $110.93 million. During the same quarter last year, the firm posted $0.09 EPS. The business's revenue was up 12.5% compared to the same quarter last year. As a group, equities analysts forecast that Sprout Social, Inc. will post -0.99 EPS for the current fiscal year.

Insider Transactions at Sprout Social

In related news, CEO Ryan Paul Barretto sold 16,800 shares of the firm's stock in a transaction that occurred on Tuesday, July 8th. The shares were sold at an average price of $21.16, for a total value of $355,488.00. Following the transaction, the chief executive officer owned 119,775 shares in the company, valued at approximately $2,534,439. This trade represents a 12.30% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider Justyn Russell Howard sold 40,000 shares of the firm's stock in a transaction that occurred on Tuesday, July 8th. The shares were sold at an average price of $21.12, for a total transaction of $844,800.00. Following the completion of the transaction, the insider owned 7,417 shares in the company, valued at $156,647.04. The trade was a 84.36% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 92,366 shares of company stock worth $1,754,519 in the last three months. Company insiders own 10.12% of the company's stock.

Institutional Trading of Sprout Social

Hedge funds have recently made changes to their positions in the company. Zurcher Kantonalbank Zurich Cantonalbank raised its stake in shares of Sprout Social by 11.2% during the first quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 16,976 shares of the company's stock valued at $373,000 after purchasing an additional 1,703 shares during the period. Cubist Systematic Strategies LLC increased its stake in shares of Sprout Social by 633.2% in the first quarter. Cubist Systematic Strategies LLC now owns 85,056 shares of the company's stock worth $1,870,000 after buying an additional 73,456 shares during the last quarter. Brighton Jones LLC increased its stake in shares of Sprout Social by 391.7% in the fourth 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 during the last quarter. Rhumbline Advisers increased its stake in shares of Sprout Social by 9.6% in the first quarter. Rhumbline Advisers now owns 76,976 shares of the company's stock worth $1,693,000 after buying an additional 6,774 shares during the last quarter. Finally, Teacher Retirement System of Texas bought a new stake in shares of Sprout Social in the first quarter worth $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.