Sprout Social (NASDAQ:SPT) Stock Price Up 5.3% – Here’s Why

Sprout Social, Inc. (NASDAQ:SPT)’s stock price shot up 5.3% during mid-day trading on Wednesday. The stock traded as high as $10.68 and last traded at $10.6660. 409,555 shares were traded during trading, a decline of 72% from the average session volume of 1,438,676 shares. The stock had previously closed at $10.13.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on the company. Morgan Stanley raised their price objective on Sprout Social from $10.00 to $11.00 and gave the company an “equal weight” rating in a report on Thursday, August 13th. Zacks Research upgraded Sprout Social from a “hold” rating to a “strong-buy” rating in a research report on Monday, August 10th. KeyCorp lifted their price target on Sprout Social from $6.00 to $7.00 and gave the company an “underweight” rating in a research note on Friday, August 7th. Wall Street Zen upgraded Sprout Social from a “buy” rating to a “strong-buy” rating in a report on Saturday, August 15th. Finally, Barclays raised their price objective on shares of Sprout Social from $9.00 to $12.00 and gave the company an “overweight” rating in a report on Tuesday, August 11th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, three have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $10.43.

Sprout Social Price Performance

The company has a fifty day simple moving average of $10.15 and a 200 day simple moving average of $7.97. The stock has a market capitalization of $646.50 million, a price-to-earnings ratio of -21.34 and a beta of 1.01. The company has a debt-to-equity ratio of 0.14, a quick ratio of 1.03 and a current ratio of 1.03.

Sprout Social (NASDAQ:SPT) last posted its quarterly earnings data on Thursday, August 6th. The company reported $0.26 earnings per share for the quarter, topping the consensus estimate 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 analysts’ expectations 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. Equities research analysts forecast that Sprout Social, Inc. will post -0.02 EPS for the current fiscal year.

Insider Transactions at Sprout Social

In other Sprout Social news, insider Justyn Howard sold 40,000 shares of the firm’s stock in a transaction that occurred on Friday, July 10th. The stock was sold at an average price of $8.28, for a total value of $331,200.00. Following the completion of the sale, the insider owned 7,417 shares of the company’s stock, valued at approximately $61,412.76. 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 accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 51,612 shares of company stock valued at $464,157 in the last 90 days. 9.60% of the stock is currently owned by corporate insiders.

Institutional Trading of Sprout Social

A number of hedge funds and other institutional investors have recently bought and sold shares of SPT. Pale Fire Capital SE acquired a new position in Sprout Social during the 1st quarter valued at about $1,960,000. Arrowstreet Capital Limited Partnership lifted its holdings in shares of Sprout Social by 46.9% in the first quarter. Arrowstreet Capital Limited Partnership now owns 442,496 shares of the company’s stock valued at $2,522,000 after purchasing an additional 141,258 shares in the last quarter. Pacer Advisors Inc. purchased a new position in shares of Sprout Social during the first quarter valued at approximately $1,500,000. EVR Research LP purchased a new position in shares of Sprout Social during the fourth quarter valued at approximately $3,381,000. Finally, Bank of New York Mellon Corp bought a new stake in Sprout Social during the second quarter worth $1,658,000.

About Sprout Social

Sprout Social, Inc (NASDAQ:SPT) provides a cloud-based social media management and analytics platform for businesses, agencies and organizations. Its software helps customers manage their social media presence, coordinate workflows and use social data to support marketing, customer care, communications and business decision-making.

The company’s platform includes tools for publishing and scheduling content, monitoring and responding to messages, analyzing social media performance, and conducting social listening.