Sprout Social (NASDAQ:SPT) Trading Up 4.7% – Should You Buy?

Sprout Social, Inc. (NASDAQ:SPT)’s stock price shot up 4.7% during trading on Tuesday . The stock traded as high as $10.06 and last traded at $9.9950. Approximately 204,250 shares were traded during trading, a decline of 86% from the average session volume of 1,497,869 shares. The stock had previously closed at $9.55.

Analyst Ratings Changes

Several equities analysts have recently weighed in on SPT shares. Wall Street Zen raised Sprout Social from a “buy” rating to a “strong-buy” rating in a research note on Saturday. Barclays increased their target price on shares of Sprout Social from $9.00 to $12.00 and gave the stock an “overweight” rating in a research report on Tuesday, August 11th. Weiss Ratings restated a “sell (e+)” rating on shares of Sprout Social in a report on Friday, July 17th. KeyCorp lifted 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. Finally, Zacks Research raised shares of Sprout Social from a “hold” rating to a “strong-buy” rating in a research report on Monday, August 10th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Sprout Social has a consensus rating of “Hold” and a consensus price target of $10.43.

Sprout Social Trading Up 4.1%

The stock has a market capitalization of $602.59 million, a price-to-earnings ratio of -19.89 and a beta of 0.97. The company has a debt-to-equity ratio of 0.14, a quick ratio of 1.03 and a current ratio of 1.03. The firm has a fifty day moving average of $8.11 and a 200-day moving average of $7.10.

Sprout Social (NASDAQ:SPT) last issued its quarterly earnings data on Thursday, August 6th. The company reported $0.26 EPS for the quarter, topping analysts’ consensus estimates of $0.16 by $0.10. Sprout Social had a negative return on equity of 8.80% and a negative net margin of 6.13%.The company had revenue of $123.85 million for the quarter, compared to analysts’ expectations of $122.19 million. 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. As a group, equities analysts predict that Sprout Social, Inc. will post -0.25 earnings per share for the current fiscal year.

Insider Activity at Sprout Social

In related news, insider Justyn Russell Howard sold 40,000 shares of the firm’s stock in a transaction dated Friday, July 10th. The stock was sold at an average price of $8.28, for a total transaction of $331,200.00. Following the sale, the insider directly owned 7,417 shares in the company, valued at approximately $61,412.76. This trade represents a 84.36% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 9.60% of the company’s stock.

Hedge Funds Weigh In On Sprout Social

A number of institutional investors and hedge funds have recently bought and sold shares of SPT. Haveli Investment Management LLC acquired a new stake in Sprout Social in the second quarter valued at approximately $16,405,033,000. LB Partners LLC lifted its position in shares of Sprout Social by 144.7% during the first quarter. LB Partners LLC now owns 1,510,979 shares of the company’s stock worth $8,613,000 after purchasing an additional 893,502 shares in the last quarter. Cubist Systematic Strategies LLC boosted 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 valued at $14,932,000 after purchasing an additional 629,033 shares during the period. Canada Pension Plan Investment Board boosted 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 valued at $9,850,000 after purchasing an additional 468,787 shares during the period. Finally, Y Intercept Hong Kong Ltd grew its holdings in Sprout Social by 252.2% during the 1st quarter. Y Intercept Hong Kong Ltd now owns 626,762 shares of the company’s stock valued at $3,573,000 after purchasing an additional 448,783 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.