Sprout Social (NASDAQ:SPT) Trading 10.1% Higher - Should You Buy?

Key Points

• Sprout Social shares jumped 10.1% to $8.33 in Monday trading, though volume was about 85% below the average session volume.
• Analyst sentiment remains mixed: the stock has a consensus “Hold” rating and an average price target of $11.88, with ratings split among Buy, Hold and Sell recommendations.
• The company exceeded quarterly earnings and revenue estimates, but continues to report negative profitability metrics; an insider also sold 40,000 shares at an average price of $8.28 under a pre-arranged trading plan.

Sprout Social, Inc. (NASDAQ:SPT - Get Free Report)'s share price was up 10.1% during trading on Monday . The company traded as high as $8.34 and last traded at $8.3320. 234,595 shares changed hands during trading, a decline of 85% from the average session volume of 1,516,848 shares. The stock had previously closed at $7.57.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on the company. Barclays increased their target price on Sprout Social from $8.00 to $9.00 and gave the company an "overweight" rating in a research note on Monday, May 11th. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Sprout Social in a research note on Friday, July 17th. Four research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $11.88.

Sprout Social Stock Performance

The firm has a market cap of $513.64 million, a P/E ratio of -12.95 and a beta of 0.99. The company has a debt-to-equity ratio of 0.15, a quick ratio of 0.95 and a current ratio of 0.95. The stock's 50-day moving average is $7.45 and its 200 day moving average is $7.20.

Sprout Social (NASDAQ:SPT - Get Free Report) last posted its earnings results on Thursday, May 7th. The company reported $0.23 earnings per share for the quarter, topping the consensus estimate of $0.16 by $0.07. Sprout Social had a negative return on equity of 13.90% and a negative net margin of 8.18%.The firm had revenue of $121.50 million for the quarter, compared to analyst estimates of $120.33 million. Sprout Social has set its Q2 2026 guidance at 0.150-0.160 EPS and its FY 2026 guidance at 0.880-0.970 EPS. On average, research analysts predict that Sprout Social, Inc. will post -0.31 earnings per share for the current year.

Insider Buying and Selling

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

Institutional Investors Weigh In On Sprout Social

A number of hedge funds and other institutional investors have recently bought and sold shares of SPT. Summit Securities Group LLC boosted its position in Sprout Social by 399.0% during the 4th quarter. Summit Securities Group LLC now owns 2,520 shares of the company's stock worth $28,000 after acquiring an additional 2,015 shares during the last quarter. Quadrant Capital Group LLC bought a new stake in shares of Sprout Social in the fourth quarter worth $28,000. Essential Partners LLC boosted its holdings in Sprout Social by 724.9% during the first quarter. Essential Partners LLC now owns 6,550 shares of the company's stock worth $37,000 after purchasing an additional 5,756 shares during the last quarter. GAMMA Investing LLC boosted its holdings in Sprout Social by 115.8% during 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 during the last quarter. Finally, Quarry LP grew its position in Sprout Social by 264.2% in the third quarter. Quarry LP now owns 3,784 shares of the company's stock valued at $49,000 after purchasing an additional 2,745 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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