Sprout Social (NASDAQ:SPT) Upgraded to "Strong-Buy" at Wall Street Zen

Key Points

• Wall Street Zen upgraded Sprout Social to “strong buy” from “buy,” while analysts remain divided; MarketBeat’s overall consensus rating is “hold” with a $10.43 target price.
• Sprout Social exceeded quarterly expectations, reporting $0.26 EPS versus a $0.16 estimate and $123.85 million in revenue versus $122.19 million expected, though it remains unprofitable with a negative net margin.
• SPT opened at $9.89 and has traded between $4.92 and $16.03 over the past year; an insider also sold 40,000 shares under a pre-arranged trading plan, reducing their position by 84.36%.

Sprout Social (NASDAQ:SPT - Get Free Report) was upgraded by stock analysts at Wall Street Zen from a "buy" rating to a "strong-buy" rating in a report released on Saturday.

Several other equities research analysts have also recently commented on SPT. KeyCorp raised their target price on Sprout Social from $6.00 to $7.00 and gave the stock an "underweight" rating in a research note on Friday, August 7th. Morgan Stanley boosted their price target on Sprout Social from $10.00 to $11.00 and gave the company an "equal weight" rating in a research note on Thursday. Barclays increased their price target on Sprout Social from $9.00 to $12.00 and gave the stock an "overweight" rating in a report on Tuesday. Zacks Research raised shares of Sprout Social from a "hold" rating to a "strong-buy" rating in a research report on Monday, August 10th. Finally, Weiss Ratings reiterated 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 assigned a Sell rating to the company. Based on data from MarketBeat, Sprout Social has an average rating of "Hold" and a consensus target price of $10.43.

Sprout Social Stock Performance

Shares of SPT opened at $9.89 on Friday. The company has a current ratio of 1.03, a quick ratio of 0.95 and a debt-to-equity ratio of 0.14. The stock has a market capitalization of $594.49 million, a P/E ratio of -19.78 and a beta of 0.97. The firm's fifty day simple moving average is $8.06 and its two-hundred day simple moving average is $7.12. Sprout Social has a 12 month low of $4.92 and a 12 month high of $16.03.

Sprout Social (NASDAQ:SPT - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The company reported $0.26 earnings per share for the quarter, topping the consensus estimate of $0.16 by $0.10. The firm had revenue of $123.85 million during the quarter, compared to analyst estimates of $122.19 million. Sprout Social had a negative return on equity of 8.80% and a negative net margin of 6.13%.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. As a group, analysts predict that Sprout Social will post -0.27 EPS for the current year.

Insider Buying and Selling at Sprout Social

In related news, insider Justyn Russell Howard sold 40,000 shares of the stock in a transaction on 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 in the company, valued at $61,412.76. This trade represents a 84.36% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 9.60% of the stock is owned by insiders.

Institutional Trading of Sprout Social

Hedge funds and other institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. grew its holdings in shares of Sprout Social by 4.2% during the fourth quarter. Vanguard Group Inc. now owns 6,822,928 shares of the company's stock valued at $76,894,000 after buying an additional 274,527 shares during the last quarter. Pale Fire Capital SE acquired a new stake in shares of Sprout Social in the 1st quarter worth about $1,960,000. Nano Cap New Millennium Growth Fund L P acquired a new stake in shares of Sprout Social in the 4th quarter worth about $2,564,000. Arrowstreet Capital Limited Partnership lifted its position in Sprout Social by 46.9% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 442,496 shares of the company's stock valued at $2,522,000 after acquiring an additional 141,258 shares in the last quarter. Finally, Brighton Jones LLC lifted its position in 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 in the last quarter.

Sprout Social Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source