Sprout Social (NASDAQ:SPT) Trading Down 3.2% – What’s Next?

Sprout Social, Inc. (NASDAQ:SPT)’s stock price was down 3.2% on Tuesday . The stock traded as low as $22.39 and last traded at $22.40. Approximately 247,162 shares were traded during mid-day trading, a decline of 64% from the average daily volume of 688,972 shares. The stock had previously closed at $23.14.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on SPT shares. Barclays cut their target price on shares of Sprout Social from $34.00 to $26.00 and set an “overweight” rating for the company in a research report on Monday, April 21st. Jefferies Financial Group boosted their price objective on shares of Sprout Social from $34.00 to $42.00 and gave the company a “buy” rating in a research report on Monday, February 3rd. Oppenheimer decreased their target price on Sprout Social from $38.00 to $32.00 and set an “outperform” rating on the stock in a report on Friday, May 9th. Canaccord Genuity Group cut their price target on Sprout Social from $40.00 to $35.00 and set a “buy” rating for the company in a report on Wednesday, February 26th. Finally, Stifel Nicolaus decreased their price objective on Sprout Social from $45.00 to $34.00 and set a “buy” rating on the stock in a research note on Wednesday, February 26th. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating and seven have given a buy rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $31.69.

Sprout Social Price Performance

The company has a quick ratio of 0.96, a current ratio of 0.96 and a debt-to-equity ratio of 0.19. The company has a market capitalization of $1.31 billion, a price-to-earnings ratio of -18.78 and a beta of 1.20. The stock’s 50-day simple moving average is $21.93 and its two-hundred day simple moving average is $27.74.

Sprout Social (NASDAQ:SPT) last issued its earnings results on Thursday, May 8th. The company reported $0.22 EPS for the quarter, beating analysts’ consensus estimates of $0.15 by $0.07. The business had revenue of $109.29 million during the quarter, compared to analysts’ expectations of $107.63 million. Sprout Social had a negative net margin of 17.24% and a negative return on equity of 40.94%. The company’s quarterly revenue was up 12.9% compared to the same quarter last year. During the same period in the prior year, the business earned $0.10 earnings per share. Equities research analysts predict that Sprout Social, Inc. will post -0.99 earnings per share for the current year.

Insider Transactions at Sprout Social

In related news, Director Aaron Edward Frederick Rankin sold 23,646 shares of the business’s stock in a transaction on Monday, March 17th. The shares were sold at an average price of $24.58, for a total transaction of $581,218.68. Following the completion of the transaction, the director now owns 42,122 shares in the company, valued at approximately $1,035,358.76. The trade was a 35.95% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Justyn Russell Howard sold 40,000 shares of the stock in a transaction dated Tuesday, May 6th. The shares were sold at an average price of $20.81, for a total value of $832,400.00. Following the completion of the transaction, the insider now owns 7,417 shares in the company, valued at approximately $154,347.77. The trade was a 84.36% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 125,446 shares of company stock worth $2,644,639. 10.12% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in SPT. Vanguard Group Inc. grew its holdings in shares of Sprout Social by 0.3% during the first quarter. Vanguard Group Inc. now owns 5,900,938 shares of the company’s stock worth $129,762,000 after buying an additional 14,771 shares during the last quarter. Cadian Capital Management LP lifted its position in Sprout Social by 6.1% during the 4th quarter. Cadian Capital Management LP now owns 4,548,323 shares of the company’s stock worth $139,679,000 after acquiring an additional 263,267 shares during the period. Dorsey Asset Management LLC lifted its position in Sprout Social by 16.7% during the 4th quarter. Dorsey Asset Management LLC now owns 2,306,149 shares of the company’s stock worth $70,822,000 after acquiring an additional 330,155 shares during the period. Jennison Associates LLC grew its stake in shares of Sprout Social by 1.3% in the 1st quarter. Jennison Associates LLC now owns 2,200,443 shares of the company’s stock valued at $48,388,000 after purchasing an additional 28,876 shares during the last quarter. Finally, ArrowMark Colorado Holdings LLC increased its holdings in shares of Sprout Social by 380.7% in the fourth quarter. ArrowMark Colorado Holdings LLC now owns 1,772,219 shares of the company’s stock valued at $54,425,000 after purchasing an additional 1,403,549 shares during the period.

About Sprout Social

Sprout Social, Inc designs, develops, and operates a web-based social media management platform in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company provides cloud software for social messaging, data and workflows in a unified system of record, intelligence, and action.