Sprout Social (NASDAQ:SPT) Trading Up 4.2% – Should You Buy?

Shares of Sprout Social, Inc. (NASDAQ:SPT) rose 4.2% during mid-day trading on Thursday . The company traded as high as $10.55 and last traded at $10.5550. 414,181 shares changed hands during trading, a decline of 72% from the average session volume of 1,485,734 shares. The stock had previously closed at $10.13.

Analyst Upgrades and Downgrades

A number of research firms recently commented on SPT. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Sprout Social in a research note on Friday, July 17th. Barclays increased their target price on Sprout Social from $9.00 to $12.00 and gave the company an “overweight” rating in a report on Tuesday, August 11th. Morgan Stanley raised their target price on Sprout Social from $10.00 to $11.00 and gave the stock an “equal weight” rating in a research report on Thursday, August 13th. Wall Street Zen raised Sprout Social from a “buy” rating to a “strong-buy” rating in a research report on Saturday, August 15th. Finally, Zacks Research raised Sprout Social from a “hold” rating to a “strong-buy” rating in a research note on Monday, August 10th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, Sprout Social has a consensus rating of “Hold” and a consensus target price of $10.43.

Sprout Social Trading Up 4.2%

The stock has a market cap of $639.59 million, a price-to-earnings ratio of -21.11 and a beta of 0.95. The company has a debt-to-equity ratio of 0.14, a quick ratio of 1.03 and a current ratio of 1.03. The company’s 50 day simple moving average is $9.37 and its two-hundred day simple moving average is $7.45.

Sprout Social (NASDAQ:SPT) last issued its 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 net margin of 6.13% and a negative return on equity of 8.80%. The company 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. Research analysts expect that Sprout Social, Inc. will post -0.02 EPS for the current fiscal year.

Insider Buying and Selling at Sprout Social

In other news, insider Justyn Howard sold 10,895 shares of Sprout Social stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $11.45, for a total transaction of $124,747.75. Following the completion of the sale, the insider directly owned 239,840 shares in the company, valued at $2,746,168. The trade was a 4.35% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 51,612 shares of company stock worth $464,157. 9.60% of the stock is owned by company insiders.

Hedge Funds Weigh In On Sprout Social

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Brighton Jones LLC increased its stake in shares of Sprout Social by 391.7% during the 4th 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 last quarter. AQR Capital Management LLC bought a new stake in Sprout Social in the first quarter worth $365,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in 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 purchasing an additional 1,265 shares in the last quarter. Goldman Sachs Group Inc. increased its position in Sprout Social by 23.0% during the first quarter. Goldman Sachs Group Inc. now owns 325,750 shares of the company’s stock worth $7,163,000 after buying an additional 60,947 shares during the last quarter. Finally, Empowered Funds LLC bought a new position in Sprout Social during the first quarter valued at about $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.