Sprout Social (NASDAQ:SPT) Announces Earnings Results, Misses Estimates By $0.35 EPS

Sprout Social (NASDAQ:SPT) issued its quarterly earnings data on Tuesday. The company reported ($0.20) EPS for the quarter, missing analysts’ consensus estimates of $0.15 by ($0.35), Zacks reports. Sprout Social had a negative return on equity of 40.94% and a negative net margin of 17.24%. Sprout Social updated its FY 2025 guidance to 0.650-0.740 EPS and its Q1 2025 guidance to 0.140-0.160 EPS.

Sprout Social Price Performance

Shares of NASDAQ SPT opened at $27.25 on Wednesday. The stock’s 50-day moving average is $31.83 and its two-hundred day moving average is $30.55. The company has a debt-to-equity ratio of 0.19, a current ratio of 0.96 and a quick ratio of 0.96. Sprout Social has a 1-year low of $25.05 and a 1-year high of $65.32. The company has a market cap of $1.56 billion, a price-to-earnings ratio of -22.71 and a beta of 1.06.

Insiders Place Their Bets

In other news, insider Justyn Russell Howard sold 40,000 shares of the stock in a transaction dated Wednesday, January 15th. The stock was sold at an average price of $31.67, for a total value of $1,266,800.00. Following the transaction, the insider now owns 27,136 shares in the company, valued at approximately $859,397.12. This represents a 59.58 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Ryan Paul Barretto sold 13,465 shares of the firm’s stock in a transaction that occurred on Tuesday, December 3rd. The stock was sold at an average price of $31.45, for a total value of $423,474.25. Following the transaction, the chief executive officer now owns 546,343 shares in the company, valued at $17,182,487.35. This represents a 2.41 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 120,265 shares of company stock worth $3,837,006 in the last quarter. 10.97% of the stock is owned by company insiders.

Analysts Set New Price Targets

A number of equities analysts recently commented on the stock. Oppenheimer reduced their price objective on shares of Sprout Social from $40.00 to $38.00 and set an “outperform” rating for the company in a research note on Tuesday, December 3rd. Scotiabank began coverage on shares of Sprout Social in a report on Monday, November 18th. They issued a “sector perform” rating and a $28.00 price target on the stock. Morgan Stanley lifted their price target on shares of Sprout Social from $36.00 to $37.00 and gave the stock an “equal weight” rating in a report on Monday, January 13th. Needham & Company LLC reaffirmed a “buy” rating and issued a $55.00 price target on shares of Sprout Social in a report on Wednesday, January 15th. Finally, Jefferies Financial Group lifted their price target on shares of Sprout Social from $34.00 to $42.00 and gave the stock a “buy” rating in a report on Monday, February 3rd. One investment analyst has rated the stock with a sell rating, seven have given a hold rating and six have issued a buy rating to the stock. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus price target of $39.58.

About Sprout Social

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.