Sprout Social, Inc. (NASDAQ:SPT) Receives Average Recommendation of “Hold” from Brokerages

Shares of Sprout Social, Inc. (NASDAQ:SPT) have received an average rating of “Hold” from the eleven ratings firms that are covering the stock, Marketbeat reports. Two equities research analysts have rated the stock with a sell recommendation, five have given a hold recommendation and four have issued a buy recommendation on the company. The average 1-year price target among analysts that have updated their coverage on the stock in the last year is $13.2222.

A number of research analysts have issued reports on the company. Barclays lifted their target price on Sprout Social from $8.00 to $9.00 and gave the company an “overweight” rating in a research report on Monday. The Goldman Sachs Group cut their price target on Sprout Social from $13.00 to $8.00 and set a “neutral” rating on the stock in a research note on Monday, March 2nd. Wall Street Zen raised Sprout Social from a “hold” rating to a “buy” rating in a research note on Sunday, March 8th. Weiss Ratings reissued a “sell (e+)” rating on shares of Sprout Social in a research note on Tuesday, April 21st. Finally, Canaccord Genuity Group reissued a “hold” rating and set a $9.00 price target (down from $16.00) on shares of Sprout Social in a research note on Friday, February 27th.

Sprout Social Stock Performance

Sprout Social stock opened at $6.55 on Wednesday. Sprout Social has a 12-month low of $4.92 and a 12-month high of $24.90. The company has a quick ratio of 0.93, a current ratio of 0.95 and a debt-to-equity ratio of 0.15. The business’s 50-day moving average price is $5.94 and its two-hundred day moving average price is $8.39. The stock has a market cap of $390.12 million, a PE ratio of -9.92 and a beta of 0.94.

Sprout Social (NASDAQ:SPT) last released its earnings results on Thursday, May 7th. The company reported $0.23 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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 analysts’ expectations 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. As a group, analysts expect that Sprout Social will post -0.4 earnings per share for the current fiscal year.

Insider Activity at Sprout Social

In other news, insider Justyn Russell Howard sold 40,000 shares of Sprout Social stock in a transaction dated Friday, April 10th. The stock was sold at an average price of $5.03, for a total transaction of $201,200.00. Following the sale, the insider directly owned 7,417 shares of the company’s stock, valued at approximately $37,307.51. This trade represents a 84.36% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 103,855 shares of company stock worth $600,860 over the last quarter. Company insiders own 9.60% of the company’s stock.

Institutional Trading of Sprout Social

A number of hedge funds have recently made changes to their positions in SPT. Topline Capital Management LLC acquired a new stake in shares of Sprout Social during the third quarter valued at about $17,555,000. LB Partners LLC lifted its stake in shares of Sprout Social by 144.7% in the first quarter. LB Partners LLC now owns 1,510,979 shares of the company’s stock worth $8,613,000 after acquiring an additional 893,502 shares during the period. Cubist Systematic Strategies LLC lifted its stake in shares of Sprout Social by 739.6% in the second quarter. Cubist Systematic Strategies LLC now owns 714,089 shares of the company’s stock worth $14,932,000 after acquiring an additional 629,033 shares during the period. Canada Pension Plan Investment Board lifted its stake in shares of Sprout Social by 20,382.0% in the second quarter. Canada Pension Plan Investment Board now owns 471,087 shares of the company’s stock worth $9,850,000 after acquiring an additional 468,787 shares during the period. Finally, Y Intercept Hong Kong Ltd lifted its stake in shares of Sprout Social by 252.2% in the first quarter. Y Intercept Hong Kong Ltd now owns 626,762 shares of the company’s stock worth $3,573,000 after acquiring an additional 448,783 shares during the period.

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.