Sprout Social, Inc. (NASDAQ:SPT) Given Average Rating of “Hold” by Brokerages

Sprout Social, Inc. (NASDAQ:SPT) has been given a consensus rating of “Hold” by the eleven research firms that are currently covering the firm, Marketbeat.com reports. Two equities research analysts have rated the stock with a sell rating, five have issued a hold rating and four have issued a buy rating on the company. The average 12-month target price among brokerages that have issued ratings on the stock in the last year is $13.1111.

Several brokerages have recently issued reports on SPT. KeyCorp decreased their target price on shares of Sprout Social from $9.00 to $6.00 and set an “underweight” rating on the stock in a research report on Friday, February 27th. The Goldman Sachs Group reduced their price target on Sprout Social from $13.00 to $8.00 and set a “neutral” rating on the stock in a research report on Monday, March 2nd. Jefferies Financial Group cut their price objective on shares of Sprout Social from $15.00 to $12.00 and set a “buy” rating on the stock in a research note on Tuesday, February 3rd. Wall Street Zen raised Sprout Social from a “hold” rating to a “buy” rating in a research note on Sunday, March 8th. Finally, Needham & Company LLC cut their price target on Sprout Social from $32.00 to $14.00 and set a “buy” rating for the company in a report on Friday, February 27th.

Key Stories Impacting Sprout Social

Here are the key news stories impacting Sprout Social this week:

• Positive Sentiment: Q1 earnings beat estimates, with EPS of $0.23 versus the $0.16 consensus, while revenue of $121.5 million also topped forecasts. Sprout Social (SPT) Q1 Earnings and Revenues Top Estimates
• Positive Sentiment: The company raised its FY 2026 outlook, guiding for EPS of $0.88 to $0.97 and revenue of $492.5 million to $495.5 million, both above consensus estimates. Sprout Social Announces First Quarter 2026 Financial Results
• Positive Sentiment: Second-quarter guidance also came in slightly above expectations, with EPS of $0.15 to $0.16 and revenue of $121.7 million to $122.5 million versus a lower Street forecast. Sprout Social Announces First Quarter 2026 Financial Results
• Neutral Sentiment: Management said subscription revenue tied to customers with at least $30K in annual recurring revenue grew 21% year over year, and it authorized a new $50 million share repurchase program, which may support sentiment but is not an immediate earnings driver. Sprout Social Announces First Quarter 2026 Financial Results
• Negative Sentiment: Despite the stronger report, Sprout Social remains unprofitable, with negative net margin and negative return on equity, which could temper upside. Sprout Social stock page

Insiders Place Their Bets

In related news, insider Justyn Russell Howard sold 40,000 shares of the stock in a transaction on Friday, April 10th. The stock was sold at an average price of $5.03, for a total transaction of $201,200.00. Following the completion of the sale, the insider directly owned 7,417 shares of the company’s stock, valued at $37,307.51. This trade represents a 84.36% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 103,855 shares of company stock worth $600,860. 9.60% of the stock is owned by corporate insiders.

Institutional Trading of Sprout Social

Institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. lifted its holdings in Sprout Social by 4.2% in the 4th quarter. Vanguard Group Inc. now owns 6,822,928 shares of the company’s stock worth $76,894,000 after buying an additional 274,527 shares in the last quarter. ArrowMark Colorado Holdings LLC grew its stake in shares of Sprout Social by 9.8% in the 3rd quarter. ArrowMark Colorado Holdings LLC now owns 4,723,921 shares of the company’s stock worth $61,033,000 after purchasing an additional 421,189 shares during the last quarter. State Street Corp increased its stake in Sprout Social by 8.2% in the 4th quarter. State Street Corp now owns 1,546,142 shares of the company’s stock worth $17,425,000 after purchasing an additional 117,757 shares in the last quarter. LB Partners LLC lifted its holdings in shares of Sprout Social by 144.7% in the first quarter. LB Partners LLC now owns 1,510,979 shares of the company’s stock valued at $8,613,000 after purchasing an additional 893,502 shares in the last quarter. Finally, Topline Capital Management LLC purchased a new position in Sprout Social during the third quarter valued at approximately $17,555,000.

Sprout Social Stock Performance

Shares of SPT stock opened at $7.40 on Wednesday. The business has a 50-day moving average price of $5.94 and a two-hundred day moving average price of $8.48. The company has a quick ratio of 0.93, a current ratio of 0.93 and a debt-to-equity ratio of 0.20. Sprout Social has a 12-month low of $4.92 and a 12-month high of $25.48. The firm has a market cap of $440.74 million, a P/E ratio of -11.21 and a beta of 0.94.

Sprout Social (NASDAQ:SPT) last issued its quarterly earnings data on Thursday, May 7th. The company reported $0.23 earnings per share for the quarter, topping analysts’ consensus estimates of $0.16 by $0.07. Sprout Social had a negative return on equity of 14.28% and a negative net margin of 8.18%.The firm had revenue of $121.50 million for the quarter, compared to analyst estimates of $120.33 million. Sprout Social has set its Q2 2026 guidance at 0.150-0.160 EPS and its FY 2026 guidance at 0.880-0.970 EPS. Equities analysts anticipate that Sprout Social will post -0.39 EPS for the current fiscal year.

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.