Sprout Social (NASDAQ:SPT) Trading 5.4% Higher – Time to Buy?

Shares of Sprout Social, Inc. (NASDAQ:SPT) shot up 5.4% during trading on Friday . The company traded as high as $11.66 and last traded at $11.64. Approximately 244,207 shares traded hands during trading, a decline of 84% from the average session volume of 1,492,691 shares. The stock had previously closed at $11.04.

Analyst Ratings Changes

Several brokerages have recently weighed in on SPT. Weiss Ratings reissued a “sell (e+)” rating on shares of Sprout Social in a research report on Friday, July 17th. Zacks Research raised shares of Sprout Social from a “hold” rating to a “strong-buy” rating in a report on Monday, August 10th. Morgan Stanley upped their price target on shares of Sprout Social from $10.00 to $11.00 and gave the company an “equal weight” rating in a research note on Thursday, August 13th. Wall Street Zen upgraded shares of Sprout Social from a “buy” rating to a “strong-buy” rating in a research note on Saturday, August 15th. Finally, KeyCorp raised their price objective on shares of Sprout Social from $6.00 to $7.00 and gave the stock an “underweight” rating in a research report on Friday, August 7th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, Sprout Social currently has an average rating of “Hold” and a consensus price target of $10.43.

Sprout Social Stock Performance

The stock has a 50 day simple moving average of $8.64 and a 200 day simple moving average of $7.21. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.14. The stock has a market cap of $696.18 million, a P/E ratio of -22.98 and a beta of 0.97.

Sprout Social (NASDAQ:SPT) last released its earnings results on Thursday, August 6th. The company reported $0.26 earnings per share for the quarter, beating analysts’ consensus estimates of $0.16 by $0.10. The firm had revenue of $123.85 million during the quarter, compared to the consensus estimate 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. On average, equities analysts expect that Sprout Social, Inc. will post -0.02 earnings per share for the current year.

Insider Buying and Selling

In related news, insider Justyn Russell Howard sold 40,000 shares of the business’s stock in a transaction dated Friday, July 10th. The stock was sold at an average price of $8.28, for a total value of $331,200.00. Following the completion of the transaction, the insider owned 7,417 shares of the company’s stock, valued at $61,412.76. The trade was a 84.36% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 9.60% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Sprout Social

Large investors have recently bought and sold shares of the company. Vanguard Group Inc. lifted its holdings in shares of Sprout Social by 4.2% during the 4th quarter. Vanguard Group Inc. now owns 6,822,928 shares of the company’s stock worth $76,894,000 after acquiring an additional 274,527 shares during the period. Pale Fire Capital SE acquired a new stake in shares of Sprout Social during the 1st quarter worth approximately $1,960,000. Nano Cap New Millennium Growth Fund L P bought a new position in Sprout Social in the fourth quarter valued at approximately $2,564,000. Arrowstreet Capital Limited Partnership increased its stake in Sprout Social by 46.9% in the first 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 during the last quarter. Finally, Brighton Jones LLC raised its position in Sprout Social by 391.7% during the fourth quarter. Brighton Jones LLC now owns 35,985 shares of the company’s stock valued at $1,105,000 after purchasing an additional 28,667 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.