Sprout Social (NASDAQ:SPT) Price Target Cut to $6.00 by Analysts at KeyCorp

Sprout Social (NASDAQ:SPT) had its price objective trimmed by KeyCorp from $9.00 to $6.00 in a research report released on Friday morning,Benzinga reports. The brokerage currently has an underweight rating on the stock.

Other research analysts have also issued reports about the stock. Canaccord Genuity Group reiterated a “hold” rating and set a $9.00 price objective (down from $16.00) on shares of Sprout Social in a report on Friday. Morgan Stanley dropped their price target on shares of Sprout Social from $17.00 to $14.00 and set an “equal weight” rating for the company in a research report on Thursday, November 13th. Barclays decreased their price target on shares of Sprout Social from $26.00 to $13.00 and set an “overweight” rating on the stock in a report on Monday, January 12th. Weiss Ratings reissued a “sell (e+)” rating on shares of Sprout Social in a research note on Thursday, January 22nd. Finally, Needham & Company LLC cut their target price on Sprout Social from $32.00 to $14.00 and set a “buy” rating on the stock in a research report on Friday. Four research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Hold” and an average target price of $15.11.

Sprout Social Trading Down 9.3%

SPT stock traded down $0.66 during midday trading on Friday, hitting $6.45. The stock had a trading volume of 4,021,391 shares, compared to its average volume of 1,817,627. The company’s 50-day moving average price is $9.12 and its 200 day moving average price is $11.13. The company has a debt-to-equity ratio of 0.23, a current ratio of 0.89 and a quick ratio of 0.89. The firm has a market cap of $381.77 million, a PE ratio of -8.72 and a beta of 0.90. Sprout Social has a 12-month low of $6.03 and a 12-month high of $27.81.

Sprout Social (NASDAQ:SPT) last posted its quarterly earnings data on Thursday, February 26th. The company reported $0.20 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.16 by $0.04. The business had revenue of $120.89 million for the quarter, compared to analysts’ expectations of $118.68 million. Sprout Social had a negative return on equity of 16.51% and a negative net margin of 9.47%.Sprout Social has set its FY 2026 guidance at 0.880-0.970 EPS and its Q1 2026 guidance at 0.150-0.160 EPS. On average, equities research analysts predict that Sprout Social will post -0.99 earnings per share for the current fiscal year.

Insider Activity

In other news, insider Justyn Russell Howard sold 40,000 shares of Sprout Social stock in a transaction that occurred on Friday, January 9th. The shares were sold at an average price of $10.70, for a total transaction of $428,000.00. Following the sale, the insider owned 7,417 shares in the company, valued at $79,361.90. This trade represents a 84.36% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Ryan Paul Barretto bought 93,984 shares of Sprout Social stock in a transaction dated Friday, January 9th. The shares were purchased at an average cost of $10.67 per share, for a total transaction of $1,002,809.28. Following the completion of the transaction, the chief executive officer owned 875,256 shares of the company’s stock, valued at approximately $9,338,981.52. This represents a 12.03% increase in their position. The SEC filing for this purchase provides additional information. Insiders own 10.12% of the company’s stock.

Hedge Funds Weigh In On Sprout Social

Institutional investors have recently added to or reduced their stakes in the company. Summit Securities Group LLC boosted its position 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 buying an additional 2,015 shares during the last quarter. Quadrant Capital Group LLC acquired a new position in shares of Sprout Social in the fourth quarter worth about $28,000. State of Alaska Department of Revenue purchased a new position in Sprout Social in the third quarter valued at about $30,000. First Horizon Advisors Inc. increased its holdings in Sprout Social by 78.9% during the 2nd quarter. First Horizon Advisors Inc. now owns 1,531 shares of the company’s stock worth $32,000 after purchasing an additional 675 shares during the last quarter. Finally, Versant Capital Management Inc raised its position in shares of Sprout Social by 2,754.5% in the 3rd quarter. Versant Capital Management Inc now owns 3,511 shares of the company’s stock valued at $45,000 after purchasing an additional 3,388 shares in the last quarter.

Sprout Social News Roundup

Here are the key news stories impacting Sprout Social this week:

• Positive Sentiment: Q4 results beat estimates and management raised guidance — Sprout reported $0.20 non‑GAAP EPS and $120.9M revenue (both above consensus) and issued Q1 and FY‑2026 non‑GAAP EPS and revenue guidance well above prior expectations; this supports the company’s claim of improving profitability and cash generation. SPT Beats Q4 Sales Expectations (Yahoo)
• Positive Sentiment: Strategic catalysts: management set a new target (30% Rule of 40 on a non‑GAAP basis by Q4 2027), highlighted growth in $30K+ customers (22% subscription revenue growth contribution) and promoted AI product Trellis — these initiatives aim to lift enterprise ARPU and margins over time. Quiver: Targets 30% Rule of 40
• Neutral Sentiment: Earnings call and disclosures provide detail but mixed signals — transcripts and slide deck show recurring GAAP losses alongside improving non‑GAAP profitability and higher deferred revenue/RPO, giving investors both runway and execution risk to weigh. Seeking Alpha: Earnings Call Transcript
• Negative Sentiment: Analysts pared targets and some issued downgrades after the print — KeyCorp cut its target to $6 and moved to underweight, Canaccord trimmed its target to $9 (hold), and Needham sharply reduced a prior $32 target to $14 (still buy); the headline KeyCorp move and mixed analyst views are likely driving near‑term selling pressure. These Analysts Cut Their Forecasts On Sprout Social After Q4 Earnings (Benzinga)
• Negative Sentiment: Underlying fundamentals still show GAAP losses and retention headwinds — Sprout reported a GAAP net loss, negative net margin and dollar‑based net retention of 100% (down from 104%), which keeps execution risk and future growth sustainability on investors’ radar. Quiver: Financial & Customer Metrics
• Negative Sentiment: Insider and institutional flows look unfavorable in recent filings — Quiver/other summaries show multiple insider sales and notable institutional reductions by some large holders, which can amplify downside momentum even when results beat. Quiver: Insider & Institutional Activity

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.