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

Sprout Social (NASDAQ:SPT) was upgraded by equities researchers at Zacks Research from a “hold” rating to a “strong-buy” rating in a report issued on Monday,Zacks.com reports.

Several other equities analysts have also recently issued reports on SPT. KeyCorp boosted their price target on Sprout Social from $6.00 to $7.00 and gave the company an “underweight” rating in a research report on Friday. Weiss Ratings restated a “sell (e+)” rating on shares of Sprout Social in a research note on Friday, July 17th. Finally, Barclays lifted their price objective on shares of Sprout Social from $9.00 to $12.00 and gave the company an “overweight” rating in a research report on Tuesday. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $10.86.

Sprout Social Stock Down 1.5%

Shares of SPT opened at $9.90 on Monday. The company’s 50-day moving average price is $7.91 and its 200 day moving average price is $7.10. Sprout Social has a 12-month low of $4.92 and a 12-month high of $16.03. The company has a current ratio of 0.95, a quick ratio of 0.95 and a debt-to-equity ratio of 0.15. The firm has a market cap of $595.09 million, a P/E ratio of -19.80 and a beta of 0.97.

Sprout Social (NASDAQ:SPT) last released its quarterly earnings results on Thursday, August 6th. The company reported $0.26 EPS for the quarter, topping analysts’ consensus estimates of $0.16 by $0.10. The company had revenue of $123.85 million for the quarter, compared to analysts’ expectations of $122.19 million. Sprout Social had a negative return on equity of 9.06% and a negative net margin of 6.13%.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. On average, sell-side analysts forecast that Sprout Social will post -0.27 earnings per share for the current year.

Insider Buying and Selling

In other Sprout Social news, insider Justyn Russell Howard sold 40,000 shares of the business’s stock in a transaction on Friday, July 10th. The shares were sold at an average price of $8.28, for a total transaction of $331,200.00. Following the sale, the insider directly owned 7,417 shares in the company, valued at approximately $61,412.76. The trade was a 84.36% decrease in their position. The sale was disclosed in a document filed 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. Company insiders own 9.60% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Summit Securities Group LLC increased its stake in Sprout Social by 399.0% in the 4th quarter. Summit Securities Group LLC now owns 2,520 shares of the company’s stock valued at $28,000 after purchasing an additional 2,015 shares in the last quarter. Quadrant Capital Group LLC purchased a new position in Sprout Social during the fourth quarter worth $28,000. Essential Partners LLC increased its position in Sprout Social by 724.9% during the first quarter. Essential Partners LLC now owns 6,550 shares of the company’s stock worth $37,000 after buying an additional 5,756 shares in the last quarter. GAMMA Investing LLC raised its holdings in shares of Sprout Social by 115.8% in the second quarter. GAMMA Investing LLC now owns 6,368 shares of the company’s stock worth $48,000 after acquiring an additional 3,417 shares during the last quarter. Finally, Quarry LP raised its holdings in shares of Sprout Social by 264.2% in the third quarter. Quarry LP now owns 3,784 shares of the company’s stock worth $49,000 after acquiring an additional 2,745 shares during the last quarter.

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.