Sprout Social (NASDAQ:SPT) Upgraded by Zacks Research to “Strong-Buy” Rating

Zacks Research upgraded shares of Sprout Social (NASDAQ:SPT) from a hold rating to a strong-buy rating in a research report released on Monday morning,Zacks.com reports.

Several other equities research analysts have also recently issued reports on the company. KeyCorp lifted their target price on Sprout Social from $6.00 to $7.00 and gave the stock an “underweight” rating in a report on Friday. Barclays increased their price target on Sprout Social from $9.00 to $12.00 and gave the company an “overweight” rating in a research note on Tuesday. Finally, Weiss Ratings restated a “sell (e+)” rating on shares of Sprout Social in a report on Friday, July 17th. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $10.86.

Sprout Social Price Performance

SPT stock opened at $9.90 on Monday. The company has a debt-to-equity ratio of 0.15, a quick ratio of 0.95 and a current ratio of 0.95. The company’s fifty day moving average price is $7.91 and its 200-day moving average price is $7.10. Sprout Social has a one year low of $4.92 and a one year high of $16.03. The company has a market capitalization of $595.09 million, a PE ratio of -19.80 and a beta of 0.97.

Sprout Social (NASDAQ:SPT) last posted its earnings results on Thursday, August 6th. The company reported $0.26 earnings per share for the quarter, beating the consensus estimate of $0.16 by $0.10. The company had revenue of $123.85 million during the quarter, compared to analysts’ expectations of $122.19 million. Sprout Social had a negative net margin of 6.13% and a negative return on equity of 9.06%. 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. On average, equities analysts anticipate that Sprout Social will post -0.27 EPS for the current fiscal year.

Insider Activity

In related news, insider Justyn Russell Howard sold 40,000 shares of the stock in a transaction dated Friday, July 10th. The shares were sold at an average price of $8.28, for a total value of $331,200.00. Following the completion of the transaction, the insider owned 7,417 shares of the company’s stock, valued at approximately $61,412.76. This trade represents a 84.36% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 9.60% of the company’s stock.

Institutional Investors Weigh In On Sprout Social

Large investors have recently added to or reduced their stakes in the stock. Summit Securities Group LLC lifted its stake in shares of Sprout Social by 399.0% in the 4th quarter. Summit Securities Group LLC now owns 2,520 shares of the company’s stock valued at $28,000 after purchasing an additional 2,015 shares during the last quarter. Quadrant Capital Group LLC bought a new position in shares of Sprout Social during the 4th quarter valued at approximately $28,000. Essential Partners LLC increased its position in shares of Sprout Social by 724.9% during the 1st quarter. Essential Partners LLC now owns 6,550 shares of the company’s stock valued at $37,000 after purchasing an additional 5,756 shares during the last quarter. GAMMA Investing LLC raised its holdings in Sprout Social by 115.8% during the 2nd quarter. GAMMA Investing LLC now owns 6,368 shares of the company’s stock valued at $48,000 after buying an additional 3,417 shares during the period. Finally, Quarry LP raised its holdings in Sprout Social by 264.2% during the 3rd quarter. Quarry LP now owns 3,784 shares of the company’s stock valued at $49,000 after buying an additional 2,745 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.