Sprout Social (NASDAQ:SPT) Shares Down 5.8% – What’s Next?

Shares of Sprout Social, Inc. (NASDAQ:SPT) fell 5.8% on Tuesday . The stock traded as low as $9.75 and last traded at $9.7350. 284,642 shares traded hands during mid-day trading, a decline of 81% from the average daily volume of 1,474,488 shares. The stock had previously closed at $10.33.

Analyst Ratings Changes

Several research firms have recently weighed in on SPT. Zacks Research raised Sprout Social from a “hold” rating to a “strong-buy” rating in a report on Monday, August 10th. Morgan Stanley lifted their target price on shares of Sprout Social from $10.00 to $11.00 and gave the company an “equal weight” rating in a research note on Thursday, August 13th. Weiss Ratings restated a “sell (e+)” rating on shares of Sprout Social in a research report on Friday, July 17th. Barclays raised their price target on Sprout Social from $9.00 to $12.00 and gave the company an “overweight” rating in a report on Tuesday, August 11th. Finally, KeyCorp increased their price target on shares of Sprout Social from $6.00 to $7.00 and gave the company an “underweight” rating in a report on Friday, August 7th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, three have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $10.43.

Sprout Social Price Performance

The firm has a market capitalization of $589.24 million, a P/E ratio of -19.47 and a beta of 0.95. The stock’s 50 day simple moving average is $9.80 and its 200 day simple moving average is $7.68. The company has a debt-to-equity ratio of 0.14, a quick ratio of 1.03 and a current ratio of 1.03.

Sprout Social (NASDAQ:SPT) last announced its quarterly earnings results on Thursday, August 6th. The company reported $0.26 earnings per share (EPS) for the quarter, beating 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 firm had revenue of $123.85 million during the quarter, compared to analyst estimates 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, analysts expect that Sprout Social, Inc. will post -0.02 earnings per share for the current fiscal year.

Insider Activity

In other news, insider Justyn Howard sold 40,000 shares of the firm’s stock in a transaction 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 transaction, the insider owned 7,417 shares in the company, valued at approximately $61,412.76. This trade represents a 84.36% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 51,612 shares of company stock worth $464,157. 9.60% of the stock is currently owned by corporate insiders.

Institutional Trading of Sprout Social

Hedge funds have recently bought and sold shares of the stock. GAMMA Investing LLC lifted its stake in shares of Sprout Social by 115.8% during the 2nd quarter. GAMMA Investing LLC now owns 6,368 shares of the company’s stock worth $48,000 after purchasing an additional 3,417 shares during the last quarter. Essential Partners LLC grew its position in shares of Sprout Social by 724.9% in the 1st quarter. Essential Partners LLC now owns 6,550 shares of the company’s stock worth $37,000 after buying an additional 5,756 shares during the last quarter. Commonwealth Financial Services LLC purchased a new position in shares of Sprout Social in the 1st quarter worth approximately $58,000. Integrated Wealth Concepts LLC bought a new position in shares of Sprout Social during the 2nd quarter worth approximately $84,000. Finally, Versant Capital Management Inc lifted its position in Sprout Social by 4,977.4% during the second quarter. Versant Capital Management Inc now owns 11,932 shares of the company’s stock valued at $90,000 after acquiring an additional 11,697 shares during the last quarter.

About Sprout Social

Sprout Social, Inc (NASDAQ:SPT) is a software company that provides social media management and analytics tools for businesses, agencies and other organizations. Its cloud-based platform helps users manage social media activities from a centralized interface, supporting functions such as content publishing, audience engagement, workflow coordination and performance reporting.

The company’s product offerings include social media monitoring and listening, analytics, customer care, employee advocacy and influencer marketing capabilities.