Sprout Social (NASDAQ:SPT) Reaches New 1-Year Low – Here’s What Happened

Sprout Social, Inc. (NASDAQ:SPT) shares hit a new 52-week low during mid-day trading on Monday . The company traded as low as $9.46 and last traded at $9.5850, with a volume of 853151 shares trading hands. The stock had previously closed at $10.05.

Wall Street Analysts Forecast Growth

SPT has been the topic of a number of research analyst reports. Oppenheimer cut their price objective on shares of Sprout Social from $32.00 to $23.00 and set an “outperform” rating on the stock in a report on Thursday, August 7th. Canaccord Genuity Group dropped their target price on shares of Sprout Social from $25.00 to $16.00 and set a “buy” rating on the stock in a research report on Friday, November 7th. Morgan Stanley reduced their price target on shares of Sprout Social from $17.00 to $14.00 and set an “equal weight” rating for the company in a research report on Thursday. Weiss Ratings restated a “sell (e+)” rating on shares of Sprout Social in a research note on Wednesday, October 8th. Finally, The Goldman Sachs Group cut their target price on Sprout Social from $24.00 to $21.00 and set a “neutral” rating on the stock in a research report on Thursday, August 7th. Six analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Sprout Social presently has an average rating of “Hold” and an average target price of $25.82.

Sprout Social Trading Down 4.3%

The business’s 50-day simple moving average is $12.07 and its 200-day simple moving average is $16.71. The company has a market cap of $569.41 million, a price-to-earnings ratio of -11.88 and a beta of 0.88. The company has a debt-to-equity ratio of 0.23, a current ratio of 0.89 and a quick ratio of 0.89.

Sprout Social (NASDAQ:SPT) last issued its quarterly earnings data on Wednesday, November 5th. The company reported $0.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.16 by $0.07. The firm had revenue of $115.59 million during the quarter, compared to the consensus estimate of $114.86 million. Sprout Social had a negative return on equity of 18.93% and a negative net margin of 10.59%.The company’s quarterly revenue was up 12.7% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.13 EPS. Sprout Social has set its FY 2025 guidance at 0.770-0.790 EPS. Q4 2025 guidance at 0.150-0.170 EPS. Research analysts predict that Sprout Social, Inc. will post -0.99 earnings per share for the current fiscal year.

Insider Activity

In related news, insider Justyn Russell Howard sold 20,000 shares of the stock in a transaction on Tuesday, November 4th. The stock was sold at an average price of $10.22, for a total transaction of $204,400.00. Following the sale, the insider owned 7,417 shares of the company’s stock, valued at $75,801.74. This trade represents a 72.95% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders sold 70,566 shares of company stock valued at $899,581 in the last quarter. 10.12% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Zurcher Kantonalbank Zurich Cantonalbank boosted its stake in shares of Sprout Social by 11.2% during the 1st quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 16,976 shares of the company’s stock worth $373,000 after purchasing an additional 1,703 shares during the last quarter. Fox Run Management L.L.C. purchased a new position in shares of Sprout Social during the second quarter valued at approximately $880,000. Jennison Associates LLC lifted its stake in shares of Sprout Social by 8.7% during the second quarter. Jennison Associates LLC now owns 2,392,450 shares of the company’s stock valued at $50,026,000 after buying an additional 192,007 shares during the period. RedJay Asset Management Inc. boosted its position in Sprout Social by 40.0% during the second quarter. RedJay Asset Management Inc. now owns 140,000 shares of the company’s stock worth $2,927,000 after acquiring an additional 40,000 shares during the last quarter. Finally, Cubist Systematic Strategies LLC grew its stake in Sprout Social by 633.2% in the 1st quarter. Cubist Systematic Strategies LLC now owns 85,056 shares of the company’s stock worth $1,870,000 after acquiring an additional 73,456 shares during the period.

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.