Sprout Social (NASDAQ:SPT) Stock Price Down 5.9% - Time to Sell?

Shares of Sprout Social, Inc. (NASDAQ:SPT - Get Free Report) fell 5.9% during trading on Wednesday . The company traded as low as $21.21 and last traded at $21.14. 408,494 shares traded hands during mid-day trading, a decline of 34% from the average session volume of 622,530 shares. The stock had previously closed at $22.46.

Analyst Ratings Changes

A number of brokerages have commented on SPT. The Goldman Sachs Group dropped their target price on shares of Sprout Social from $29.00 to $23.00 and set a "neutral" rating on the stock in a research note on Thursday, April 17th. Canaccord Genuity Group dropped their target price on shares of Sprout Social from $40.00 to $35.00 and set a "buy" rating on the stock in a research note on Wednesday, February 26th. Stifel Nicolaus lowered their price target on shares of Sprout Social from $45.00 to $34.00 and set a "buy" rating for the company in a research report on Wednesday, February 26th. Barclays lowered their price target on shares of Sprout Social from $34.00 to $26.00 and set an "overweight" rating for the company in a research report on Monday, April 21st. Finally, Oppenheimer lowered their price target on shares of Sprout Social from $38.00 to $32.00 and set an "outperform" rating for the company in a research report on Friday, May 9th. One analyst has rated the stock with a sell rating, six have assigned a hold rating and six have assigned a buy rating to the company. Based on data from MarketBeat, Sprout Social has a consensus rating of "Hold" and an average price target of $30.00.

Sprout Social Price Performance

The stock's 50-day moving average is $21.31 and its 200 day moving average is $26.91. The company has a debt-to-equity ratio of 0.19, a current ratio of 0.96 and a quick ratio of 0.96. The company has a market cap of $1.23 billion, a PE ratio of -17.67 and a beta of 1.04.

Sprout Social (NASDAQ:SPT - Get Free Report) last posted its quarterly earnings results on Thursday, May 8th. The company reported $0.22 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.15 by $0.07. The business had revenue of $109.29 million during the quarter, compared to analysts' expectations of $107.63 million. Sprout Social had a negative net margin of 17.24% and a negative return on equity of 40.94%. The business's quarterly revenue was up 12.9% on a year-over-year basis. During the same quarter last year, the company posted $0.10 earnings per share. On average, equities analysts anticipate that Sprout Social, Inc. will post -0.99 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Sprout Social news, CEO Ryan Paul Barretto sold 16,800 shares of the stock in a transaction on Friday, April 4th. The shares were sold at an average price of $19.90, for a total transaction of $334,320.00. Following the transaction, the chief executive officer now directly owns 136,575 shares of the company's stock, valued at $2,717,842.50. This trade represents a 10.95% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Justyn Russell Howard sold 40,000 shares of the stock in a transaction on Tuesday, June 3rd. The shares were sold at an average price of $21.65, for a total transaction of $866,000.00. Following the transaction, the insider now directly owns 7,417 shares in the company, valued at approximately $160,578.05. The trade was a 84.36% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 176,021 shares of company stock valued at $3,738,636. Insiders own 10.12% of the company's stock.

Hedge Funds Weigh In On Sprout Social

Several hedge funds and other institutional investors have recently added to or reduced their stakes in SPT. Barclays PLC lifted its holdings in Sprout Social by 339.5% during the third quarter. Barclays PLC now owns 90,234 shares of the company's stock valued at $2,623,000 after purchasing an additional 69,704 shares in the last quarter. Brighton Jones LLC lifted 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 in the last quarter. Rhumbline Advisers lifted its stake in shares of Sprout Social by 2.1% in the fourth quarter. Rhumbline Advisers now owns 70,202 shares of the company's stock worth $2,156,000 after buying an additional 1,446 shares in the last quarter. Peregrine Capital Management LLC lifted its stake in shares of Sprout Social by 1.9% in the fourth quarter. Peregrine Capital Management LLC now owns 172,702 shares of the company's stock worth $5,304,000 after buying an additional 3,213 shares in the last quarter. Finally, Handelsbanken Fonder AB lifted its stake in shares of Sprout Social by 28.9% in the fourth quarter. Handelsbanken Fonder AB now owns 11,600 shares of the company's stock worth $356,000 after buying an additional 2,600 shares in the last quarter.

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.