Sprout Social (NASDAQ:SPT) Price Target Cut to $14.00 by Analysts at Needham & Company LLC

Sprout Social (NASDAQ:SPT) had its price objective lowered by equities researchers at Needham & Company LLC from $32.00 to $14.00 in a report released on Friday,Benzinga reports. The brokerage presently has a “buy” rating on the stock. Needham & Company LLC’s price objective would suggest a potential upside of 96.91% from the stock’s current price.

Other analysts also recently issued research reports about the stock. Weiss Ratings reissued a “sell (e+)” rating on shares of Sprout Social in a research report on Thursday, January 22nd. Jefferies Financial Group dropped their price objective on shares of Sprout Social from $15.00 to $12.00 and set a “buy” rating on the stock in a report on Tuesday, February 3rd. Morgan Stanley reduced their target price on Sprout Social from $17.00 to $14.00 and set an “equal weight” rating for the company in a research note on Thursday, November 13th. Canaccord Genuity Group reaffirmed a “hold” rating and set a $9.00 price target (down from $16.00) on shares of Sprout Social in a research report on Friday. Finally, Barclays cut their price objective on Sprout Social from $26.00 to $13.00 and set an “overweight” rating on the stock in a report on Monday, January 12th. Four research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $16.25.

Sprout Social Trading Up 5.2%

Shares of NASDAQ:SPT opened at $7.11 on Friday. The business’s 50-day moving average is $9.22 and its 200 day moving average is $11.18. 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 has a 1 year low of $6.43 and a 1 year high of $29.01. The firm has a market capitalization of $420.84 million, a P/E ratio of -8.78 and a beta of 0.90.

Sprout Social (NASDAQ:SPT) last issued its quarterly earnings results on Thursday, February 26th. The company reported $0.20 earnings per share for the quarter, topping the consensus estimate of $0.16 by $0.04. Sprout Social had a negative return on equity of 18.93% and a negative net margin of 10.59%.The business had revenue of $120.89 million during the quarter, compared to the consensus estimate of $118.68 million. Sprout Social has set its FY 2026 guidance at 0.880-0.970 EPS and its Q1 2026 guidance at 0.150-0.160 EPS. On average, research analysts predict that Sprout Social will post -0.99 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Ryan Paul Barretto purchased 93,984 shares of Sprout Social stock in a transaction that occurred on Friday, January 9th. The stock was bought at an average cost of $10.67 per share, for a total transaction of $1,002,809.28. Following the completion of the transaction, the chief executive officer owned 875,256 shares in the company, valued at $9,338,981.52. The trade was a 12.03% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this link. Also, Director Aaron Edward Frederick Rankin purchased 90,661 shares of the firm’s stock in a transaction on Wednesday, December 17th. The stock was bought at an average cost of $11.14 per share, with a total value of $1,009,963.54. Following the completion of the acquisition, the director directly owned 114,969 shares of the company’s stock, valued at $1,280,754.66. This trade represents a 372.97% increase in their position. The SEC filing for this purchase provides additional information. 10.12% of the stock is owned by insiders.

Hedge Funds Weigh In On Sprout Social

Large investors have recently made changes to their positions in the company. Summit Securities Group LLC boosted its holdings in Sprout Social by 399.0% during the fourth quarter. Summit Securities Group LLC now owns 2,520 shares of the company’s stock worth $28,000 after buying an additional 2,015 shares in the last quarter. Quadrant Capital Group LLC purchased a new stake in shares of Sprout Social during the 4th quarter worth about $28,000. State of Alaska Department of Revenue acquired a new stake in shares of Sprout Social during the 3rd quarter valued at about $30,000. First Horizon Advisors Inc. grew its position in shares of Sprout Social by 78.9% during the 2nd quarter. First Horizon Advisors Inc. now owns 1,531 shares of the company’s stock valued at $32,000 after acquiring an additional 675 shares during the period. Finally, Versant Capital Management Inc increased its stake in shares of Sprout Social by 2,754.5% in the 3rd quarter. Versant Capital Management Inc now owns 3,511 shares of the company’s stock valued at $45,000 after purchasing an additional 3,388 shares in the last quarter.

Key Headlines Impacting Sprout Social

Here are the key news stories impacting Sprout Social this week:

• Positive Sentiment: Q4 results beat consensus: non-GAAP EPS $0.20 vs. $0.16 estimate and revenue of $120.9M topped expectations, an immediate bullish catalyst for the stock. Sprout Social (NASDAQ:SPT) Beats Q4 CY2025 Sales Expectations
• Positive Sentiment: Management raised forward guidance sharply: Q1 2026 EPS guide of $0.15–$0.16 and FY2026 EPS $0.88–$0.97 (well above prior consensus), which markets view as a strong signal of earnings improvement. Sprout Social Q4 earnings / guidance (MarketBeat)
• Positive Sentiment: Enterprise expansion and product momentum: Sprout reported 22% growth from customers with ≥$30K ARR, launched Trellis (an AI agent) and highlighted partnerships (e.g., Reddit), supporting higher-value customer mix and revenue visibility. Sprout Social Targets 30% Non-GAAP Rule of 40 by Q4 2027 (Quiver)
• Positive Sentiment: Profitability and cash flow improving: non-GAAP operating income and free cash flow rose in Q4 and cash on hand (~$95M) gives flexibility for investments while management targets a 30% Rule-of-40 metric by Q4 2027. Sprout Social (SPT) Q4 Earnings and Revenues Top Estimates (Zacks)
• Neutral Sentiment: Management hosted an earnings call and published a detailed transcript/slide deck for deeper look at metrics and assumptions; listen/read for guidance drivers and cadence. Sprout Social, Inc. Q4 2025 Earnings Call Transcript (Seeking Alpha)
• Neutral Sentiment: Multiple press summaries and snapshots are available (local press, Yahoo preview) if you want quick recaps of the quarters and investor materials. Sprout Social: Q4 Earnings Snapshot (Stamford Advocate)
• Negative Sentiment: GAAP results still show a net loss (Q4 GAAP net loss ~$10.7M) and dollar-based net retention fell to 100% (from 104% prior year), which could cap valuation multiple until retention and GAAP profitability trends improve. Sprout Social Announces Fourth Quarter 2025 Financial Results (Business Insider)
• Negative Sentiment: Insider selling and some institutional reductions were reported in the quarter (noted by data aggregators), which investors may view as a near-term headwind for sentiment. Insider and institutional activity noted (Quiver)

Sprout Social Company Profile

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.