Sprout Social (NASDAQ:SPT) Shares Down 5.8% – What’s Next?

Sprout Social, Inc. (NASDAQ:SPT) traded down 5.8% on Tuesday . The stock traded as low as $9.75 and last traded at $9.7350. 284,642 shares changed hands during mid-day trading, a decline of 81% from the average daily volume of 1,474,488 shares. The stock had previously closed at $10.33.

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on the company. Zacks Research raised Sprout Social from a “hold” rating to a “strong-buy” rating in a report on Monday, August 10th. Barclays increased their price target on shares of Sprout Social from $9.00 to $12.00 and gave the stock an “overweight” rating in a report on Tuesday, August 11th. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Sprout Social in a report on Friday, July 17th. Morgan Stanley raised their price target on shares of Sprout Social from $10.00 to $11.00 and gave the company an “equal weight” rating in a report on Thursday, August 13th. Finally, KeyCorp boosted their price target on shares of Sprout Social from $6.00 to $7.00 and gave the company an “underweight” rating in a research report on Friday, August 7th. One equities research 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 stock. According to data from MarketBeat, Sprout Social has a consensus rating of “Hold” and a consensus target price of $10.43.

Sprout Social Price Performance

The company has a market capitalization of $589.24 million, a PE ratio of -19.47 and a beta of 0.95. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 0.14. The firm’s 50-day moving average is $9.80 and its 200-day moving average is $7.68.

Sprout Social (NASDAQ:SPT) last released its quarterly 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 business had revenue of $123.85 million for 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. Equities analysts predict that Sprout Social, Inc. will post -0.02 earnings per share for the current fiscal year.

Insider Activity at Sprout Social

In other news, insider Justyn Howard sold 40,000 shares of the business’s stock in a transaction that occurred on Friday, July 10th. The shares were sold at an average price of $8.28, for a total value of $331,200.00. Following the completion of the sale, the insider directly owned 7,417 shares in the company, valued at approximately $61,412.76. The trade was a 84.36% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 51,612 shares of company stock worth $464,157 over the last quarter. Company insiders own 9.60% of the company’s stock.

Institutional Investors Weigh In On Sprout Social

Several institutional investors have recently bought and sold shares of SPT. Pale Fire Capital SE bought a new stake in shares of Sprout Social in the first quarter worth about $1,960,000. Arrowstreet Capital Limited Partnership boosted its holdings in shares of Sprout Social by 46.9% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 442,496 shares of the company’s stock valued at $2,522,000 after buying an additional 141,258 shares in the last quarter. Pacer Advisors Inc. purchased a new stake in Sprout Social in the first quarter worth about $1,500,000. EVR Research LP purchased a new stake in shares of Sprout Social in the 4th quarter worth approximately $3,381,000. Finally, Renaissance Technologies LLC increased its holdings in shares of Sprout Social by 79.4% during the first quarter. Renaissance Technologies LLC now owns 727,762 shares of the company’s stock valued at $4,148,000 after acquiring an additional 322,200 shares in the last quarter.

About Sprout Social

Sprout Social, Inc (NASDAQ:SPT) is a software company that provides social media management and analytics tools for businesses, agencies and other organizations. Its cloud-based platform helps users manage social media activities from a centralized interface, supporting functions such as content publishing, audience engagement, workflow coordination and performance reporting.

The company’s product offerings include social media monitoring and listening, analytics, customer care, employee advocacy and influencer marketing capabilities.