Sprout Social (NASDAQ:SPT) Posts Earnings Results, Misses Expectations By $0.35 EPS

Sprout Social (NASDAQ:SPT) released its quarterly earnings results on Tuesday. The company reported ($0.20) earnings per share for the quarter, missing analysts’ consensus estimates of $0.15 by ($0.35), Zacks reports. Sprout Social had a negative net margin of 17.24% and a negative return on equity of 40.94%. Sprout Social updated its FY 2025 guidance to 0.650-0.740 EPS and its Q1 2025 guidance to 0.140-0.160 EPS.

Sprout Social Price Performance

Shares of NASDAQ:SPT traded down $0.68 during trading on Tuesday, hitting $27.25. 702,184 shares of the company were exchanged, compared to its average volume of 552,959. The business’s 50 day moving average is $31.97 and its 200-day moving average is $30.59. The company has a market capitalization of $1.56 billion, a P/E ratio of -22.71 and a beta of 1.06. The company has a quick ratio of 0.96, a current ratio of 0.96 and a debt-to-equity ratio of 0.19. Sprout Social has a 1-year low of $25.05 and a 1-year high of $65.32.

Insider Transactions at Sprout Social

In related news, insider Justyn Russell Howard sold 40,000 shares of the business’s stock in a transaction on Wednesday, January 15th. The shares were sold at an average price of $31.67, for a total value of $1,266,800.00. Following the sale, the insider now owns 27,136 shares of the company’s stock, valued at $859,397.12. The trade was a 59.58 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO Ryan Paul Barretto sold 13,465 shares of the business’s stock in a transaction on Tuesday, December 3rd. The stock was sold at an average price of $31.45, for a total transaction of $423,474.25. Following the completion of the sale, the chief executive officer now directly owns 546,343 shares in the company, valued at approximately $17,182,487.35. This represents a 2.41 % decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 120,265 shares of company stock worth $3,837,006. Corporate insiders own 10.97% of the company’s stock.

Wall Street Analysts Forecast Growth

SPT has been the subject of a number of analyst reports. Morgan Stanley lifted their price target on shares of Sprout Social from $36.00 to $37.00 and gave the company an “equal weight” rating in a research report on Monday, January 13th. Jefferies Financial Group lifted their price target 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 dropped their price target on shares of Sprout Social from $40.00 to $38.00 and set an “outperform” rating for the company in a research report on Tuesday, December 3rd. Needham & Company LLC restated a “buy” rating and set a $55.00 price objective on shares of Sprout Social in a research report on Wednesday, January 15th. Finally, Piper Sandler lowered their price objective on shares of Sprout Social from $40.00 to $29.00 and set a “neutral” rating for the company in a research report on Monday, November 11th. One analyst has rated the stock with a sell rating, seven have given a hold rating and six have given a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $39.58.

Sprout Social Company Profile

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.