Sprout Social (NASDAQ:SPT) Shares Gap Down After Insider Selling

Sprout Social, Inc. (NASDAQ:SPT) gapped down before the market opened on Tuesday following insider selling activity. The stock had previously closed at $8.56, but opened at $7.99. Sprout Social shares last traded at $8.4230, with a volume of 122,794 shares changing hands.

Specifically, insider Justyn Russell Howard sold 40,000 shares of the company’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 completion of the sale, the insider directly owned 7,417 shares of the company’s stock, valued at approximately $61,412.76. This represents 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.

Wall Street Analyst Weigh In

Several research analysts have commented on the company. Barclays raised their price objective on Sprout Social from $8.00 to $9.00 and gave the company an “overweight” rating in a research report on Monday, May 11th. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Sprout Social in a research report on Tuesday, April 21st. Four equities research 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. According to MarketBeat, Sprout Social has an average rating of “Hold” and a consensus target price of $11.88.

Sprout Social Stock Performance

The firm has a market capitalization of $508.83 million, a price-to-earnings ratio of -12.83 and a beta of 0.99. The company has a debt-to-equity ratio of 0.15, a quick ratio of 0.95 and a current ratio of 0.95. The stock’s fifty day moving average is $7.16 and its two-hundred day moving average is $7.38.

Sprout Social (NASDAQ:SPT) last issued its quarterly earnings data on Thursday, May 7th. The company reported $0.23 EPS for the quarter, topping analysts’ consensus estimates of $0.16 by $0.07. The firm had revenue of $121.50 million for the quarter, compared to analyst estimates of $120.33 million. Sprout Social had a negative net margin of 8.18% and a negative return on equity of 13.90%. Sprout Social has set its Q2 2026 guidance at 0.150-0.160 EPS and its FY 2026 guidance at 0.880-0.970 EPS. Analysts forecast that Sprout Social, Inc. will post -0.31 earnings per share for the current year.

Institutional Trading of Sprout Social

A number of hedge funds and other institutional investors have recently modified their holdings of SPT. Summit Securities Group LLC lifted its stake in shares of Sprout Social by 399.0% in the fourth quarter. Summit Securities Group LLC now owns 2,520 shares of the company’s stock worth $28,000 after acquiring an additional 2,015 shares in the last quarter. Quadrant Capital Group LLC acquired a new stake in Sprout Social during the 4th quarter valued at approximately $28,000. Essential Partners LLC increased its holdings in Sprout Social by 724.9% during the 1st quarter. Essential Partners LLC now owns 6,550 shares of the company’s stock worth $37,000 after purchasing an additional 5,756 shares during the last quarter. GAMMA Investing LLC increased its holdings in Sprout Social by 115.8% during the 2nd quarter. GAMMA Investing LLC now owns 6,368 shares of the company’s stock worth $48,000 after purchasing an additional 3,417 shares during the last quarter. Finally, Quarry LP raised its position in shares of Sprout Social by 264.2% in the 3rd quarter. Quarry LP now owns 3,784 shares of the company’s stock valued at $49,000 after purchasing an additional 2,745 shares in the last quarter.

Sprout Social Company Profile

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.