Sprout Social (NASDAQ:SPT) Hits New 1-Year Low – Should You Sell?

Sprout Social, Inc. (NASDAQ:SPT)’s share price hit a new 52-week low during trading on Thursday . The stock traded as low as $8.56 and last traded at $8.68, with a volume of 545858 shares. The stock had previously closed at $9.31.

Wall Street Analyst Weigh In

Several analysts have issued reports on the company. Weiss Ratings restated a “sell (e+)” rating on shares of Sprout Social in a report on Thursday, January 22nd. Morgan Stanley dropped their target price on Sprout Social from $17.00 to $14.00 and set an “equal weight” rating on the stock in a research report on Thursday, November 13th. Canaccord Genuity Group cut their price target on shares of Sprout Social from $25.00 to $16.00 and set a “buy” rating on the stock in a report on Friday, November 7th. Finally, Barclays reduced their price target on Sprout Social from $26.00 to $13.00 and set an “overweight” rating for the company in a research report on Monday, January 12th. Six research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $24.64.

Sprout Social Price Performance

The company’s 50 day moving average price is $10.45 and its 200 day moving average price is $12.65. The firm has a market capitalization of $510.99 million, a P/E ratio of -10.67 and a beta of 0.81. 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 (NASDAQ:SPT) last posted its earnings results on Wednesday, November 5th. The company reported $0.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.16 by $0.07. Sprout Social had a negative return on equity of 18.93% and a negative net margin of 10.59%.The company had revenue of $115.59 million during the quarter, compared to analyst estimates of $114.86 million. During the same period in the previous year, the company earned $0.13 EPS. The company’s revenue for the quarter was up 12.7% compared to the same quarter last year. Sprout Social has set its FY 2025 guidance at 0.770-0.790 EPS and its Q4 2025 guidance at 0.150-0.170 EPS. As a group, sell-side analysts anticipate that Sprout Social, Inc. will post -0.99 EPS for the current fiscal year.

Insider Buying and Selling

In related news, insider Justyn Russell Howard sold 40,000 shares of Sprout Social stock in a transaction that occurred on Friday, January 9th. The shares were sold at an average price of $10.70, for a total value of $428,000.00. Following the transaction, the insider directly owned 7,417 shares of the company’s stock, valued at $79,361.90. This trade represents a 84.36% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Ryan Paul Barretto acquired 93,984 shares of the stock in a transaction that occurred on Friday, January 9th. The shares were bought at an average price of $10.67 per share, with a total value 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. This represents a 12.03% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 10.12% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Sprout Social

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Brighton Jones LLC grew its holdings in Sprout Social by 391.7% in the fourth quarter. Brighton Jones LLC now owns 35,985 shares of the company’s stock worth $1,105,000 after purchasing an additional 28,667 shares during the period. AQR Capital Management LLC purchased a new stake in shares of Sprout Social during the 1st quarter worth approximately $365,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in Sprout Social by 2.4% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 53,127 shares of the company’s stock valued at $1,168,000 after acquiring an additional 1,265 shares during the period. Goldman Sachs Group Inc. boosted its holdings in shares of Sprout Social by 23.0% in the first quarter. Goldman Sachs Group Inc. now owns 325,750 shares of the company’s stock worth $7,163,000 after acquiring an additional 60,947 shares during the period. Finally, Empowered Funds LLC purchased a new position in Sprout Social during the first quarter valued at approximately $325,000.

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.