Sprout Social (NASDAQ:SPT) Stock Rating Lowered by Zacks Research

Sprout Social (NASDAQ:SPT) was downgraded by stock analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a research report issued to clients and investors on Monday, Zacks reports.

Several other research analysts also recently issued reports on SPT. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Sprout Social in a research note on Friday, July 17th. Morgan Stanley increased their price objective on shares of Sprout Social from $10.00 to $11.00 and gave the stock an “equal weight” rating in a research report on Thursday, August 13th. KeyCorp increased their price target on Sprout Social from $6.00 to $7.00 and gave the stock an “underweight” rating in a report 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 target price on Sprout Social from $9.00 to $12.00 and gave the company an “overweight” rating in a research note on Tuesday, August 11th. Three equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $10.43.

Sprout Social Trading Up 1.4%

Shares of NASDAQ:SPT opened at $11.20 on Monday. 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 has a 50-day simple moving average of $10.39 and a 200 day simple moving average of $8.16. The company has a market capitalization of $678.61 million, a P/E ratio of -22.40 and a beta of 1.01. Sprout Social has a 52-week low of $4.92 and a 52-week high of $12.06.

Sprout Social (NASDAQ:SPT) last announced its quarterly earnings results on Thursday, August 6th. The company reported $0.26 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 business had revenue of $123.85 million for 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. Sell-side analysts forecast that Sprout Social will post -0.02 earnings per share for the current year.

Insider Activity

In related news, insider Justyn Howard sold 40,000 shares of the business’s stock in a transaction that occurred on Friday, October 9th. The shares were sold at an average price of $11.02, for a total transaction of $440,800.00. Following the completion of the transaction, the insider owned 7,417 shares of the company’s stock, valued at approximately $81,735.34. The trade was a 84.36% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 51,612 shares of company stock valued at $573,757 over the last quarter. Corporate insiders own 9.60% of the company’s stock.

Institutional Investors Weigh In On Sprout Social

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Sequoia Financial Advisors LLC bought a new stake in Sprout Social in the second quarter valued at $192,000. WINTON GROUP Ltd lifted its position in Sprout Social by 15.4% in the 2nd quarter. WINTON GROUP Ltd now owns 27,000 shares of the company’s stock valued at $204,000 after acquiring an additional 3,600 shares in the last quarter. Integrated Wealth Concepts LLC bought a new position in Sprout Social during the second quarter valued at approximately $84,000. Squarepoint Ops LLC purchased a new stake in Sprout Social during the second quarter valued at $457,000. Finally, Proficio Capital Partners LLC purchased a new position in shares of Sprout Social during the 2nd quarter valued at about $119,000.

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.