Sprout Social (NASDAQ:SPT) Stock Rating Cut to Hold at Zacks Research

Zacks Research downgraded shares of Sprout Social (NASDAQ:SPT) from a strong-buy rating to a hold rating in a research note published on Monday morning,Zacks reports.

Several other research firms have also recently issued reports on SPT. Weiss Ratings restated a “sell (e+)” rating on shares of Sprout Social in a report on Friday, July 17th. Wall Street Zen raised Sprout Social from a “buy” rating to a “strong-buy” rating in a research report on Saturday, August 15th. KeyCorp upped their target price on Sprout Social from $6.00 to $7.00 and gave the company an “underweight” rating in a research note on Friday, August 7th. Morgan Stanley upped their target price on Sprout Social from $10.00 to $11.00 and gave the company an “equal weight” rating in a research note on Thursday, August 13th. Finally, Barclays increased their target price on Sprout Social from $9.00 to $12.00 and gave the stock an “overweight” rating in a research report on Tuesday, August 11th. Three analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $10.43.

Sprout Social Stock Up 1.4%

Shares of NASDAQ SPT opened at $11.20 on Monday. Sprout Social has a 1 year low of $4.92 and a 1 year high of $12.06. The firm’s 50 day moving average price is $10.39 and its 200 day moving average price is $8.16. The firm has a market cap of $678.61 million, a P/E ratio of -22.40 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 released its earnings results on Thursday, August 6th. The company reported $0.26 EPS for the quarter, topping the consensus estimate of $0.16 by $0.10. The firm had revenue of $123.85 million during the quarter, compared to analysts’ expectations of $122.19 million. Sprout Social had a negative net margin of 6.13% and a negative return on equity of 8.80%. 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. As a group, sell-side analysts anticipate that Sprout Social will post -0.02 earnings per share for the current year.

Insider Buying and Selling at Sprout Social

In other news, insider Justyn Howard sold 40,000 shares of Sprout Social stock in a transaction dated Friday, October 9th. The stock was sold at an average price of $11.02, for a total value of $440,800.00. Following the transaction, the insider directly owned 7,417 shares of the company’s stock, valued at $81,735.34. The trade was a 84.36% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 51,612 shares of company stock valued at $573,757. Insiders own 9.60% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of SPT. SG Americas Securities LLC increased its stake in shares of Sprout Social by 10.7% in the first quarter. SG Americas Securities LLC now owns 34,463 shares of the company’s stock worth $196,000 after acquiring an additional 3,319 shares during the last quarter. GAMMA Investing LLC raised its holdings in shares of Sprout Social by 115.8% during 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 in the last quarter. WINTON GROUP Ltd boosted its position in Sprout Social by 15.4% during the second quarter. WINTON GROUP Ltd now owns 27,000 shares of the company’s stock valued at $204,000 after purchasing an additional 3,600 shares during the last quarter. PNC Financial Services Group Inc. boosted its position in Sprout Social by 27.2% during the first quarter. PNC Financial Services Group Inc. now owns 20,889 shares of the company’s stock valued at $119,000 after purchasing an additional 4,467 shares during the last quarter. Finally, Essential Partners LLC boosted 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 valued at $37,000 after purchasing an additional 5,756 shares during the last quarter.

Sprout Social Company Profile

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.