Sprout Social (NASDAQ:SPT) Trading Down 3.9% – Here’s What Happened

Shares of Sprout Social, Inc. (NASDAQ:SPT) fell 3.9% on Friday . The company traded as low as $9.62 and last traded at $9.68. 79,870 shares changed hands during mid-day trading, a decline of 95% from the average daily volume of 1,493,338 shares. The stock had previously closed at $10.07.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on SPT shares. Wall Street Zen raised Sprout Social from a “buy” rating to a “strong-buy” rating in a research report on Saturday, August 15th. Weiss Ratings reissued a “sell (e+)” rating on shares of Sprout Social in a research report on Friday, July 17th. Morgan Stanley boosted their price objective on shares of Sprout Social from $10.00 to $11.00 and gave the stock an “equal weight” rating in a research note on Thursday, August 13th. Barclays raised their target price on shares of Sprout Social from $9.00 to $12.00 and gave the company an “overweight” rating in a research note on Tuesday, August 11th. Finally, Zacks Research upgraded shares of Sprout Social from a “hold” rating to a “strong-buy” rating in a report on Monday, August 10th. One 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 given a Sell rating to the company’s stock. According to MarketBeat, Sprout Social has a consensus rating of “Hold” and a consensus price target of $10.43.

Sprout Social Stock Performance

The firm’s 50 day moving average price is $8.28 and its 200-day moving average price is $7.12. The firm has a market cap of $611.98 million, a price-to-earnings ratio of -20.20 and a beta of 0.97. The company has a debt-to-equity ratio of 0.14, a current ratio of 1.03 and a quick ratio of 1.03.

Sprout Social (NASDAQ:SPT) last issued its quarterly earnings results on Thursday, August 6th. The company reported $0.26 earnings per share for the quarter, beating analysts’ consensus estimates of $0.16 by $0.10. Sprout Social had a negative net margin of 6.13% and a negative return on equity of 8.80%. The firm had revenue of $123.85 million during the quarter, compared to the consensus estimate 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. On average, analysts anticipate that Sprout Social, Inc. will post -0.02 earnings per share for the current year.

Insider Activity

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

Institutional Investors Weigh In On Sprout Social

Institutional investors and hedge funds have recently made changes to their positions in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in shares of Sprout Social by 2.4% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 53,127 shares of the company’s stock worth $1,168,000 after acquiring an additional 1,265 shares during the period. Russell Investments Group Ltd. increased its position in Sprout Social by 39.1% during the 4th quarter. Russell Investments Group Ltd. now owns 6,235 shares of the company’s stock valued at $70,000 after purchasing an additional 1,752 shares during the period. Tower Research Capital LLC TRC raised its holdings in Sprout Social by 55.5% during the 2nd quarter. Tower Research Capital LLC TRC now owns 5,496 shares of the company’s stock worth $115,000 after purchasing an additional 1,962 shares during the last quarter. Summit Securities Group LLC lifted its position 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 worth $28,000 after purchasing an additional 2,015 shares during the period. Finally, Headlands Technologies LLC boosted its stake in shares of Sprout Social by 13.0% in the 2nd quarter. Headlands Technologies LLC now owns 18,573 shares of the company’s stock valued at $388,000 after purchasing an additional 2,131 shares during 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.