Sprout Social (NASDAQ:SPT) Trading Up 4.7% – Should You Buy?

Sprout Social, Inc. (NASDAQ:SPT) shares rose 4.7% during mid-day trading on Tuesday . The stock traded as high as $10.06 and last traded at $9.9950. 204,250 shares changed hands during mid-day trading, a decline of 86% from the average daily volume of 1,497,869 shares. The stock had previously closed at $9.55.

Analysts Set New Price Targets

A number of research firms have weighed in on SPT. Wall Street Zen raised shares of Sprout Social from a “buy” rating to a “strong-buy” rating in a report on Saturday, August 15th. Zacks Research upgraded Sprout Social from a “hold” rating to a “strong-buy” rating in a research report on Monday, August 10th. KeyCorp lifted their price target on Sprout Social from $6.00 to $7.00 and gave the company an “underweight” rating in a research note on Friday, August 7th. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Sprout Social in a report on Friday, July 17th. Finally, Morgan Stanley increased their price target on Sprout Social from $10.00 to $11.00 and gave the stock an “equal weight” rating in a research report on Thursday, August 13th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, three have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, Sprout Social currently has an average rating of “Hold” and an average price target of $10.43.

Sprout Social Price Performance

The firm has a market capitalization of $607.72 million, a PE ratio of -20.06 and a beta of 0.97. The stock’s 50 day simple moving average is $8.22 and its two-hundred day simple moving average is $7.12. 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 quarterly earnings data on Thursday, August 6th. The company reported $0.26 earnings per share (EPS) for the quarter, topping the consensus estimate 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 firm had revenue of $123.85 million during the quarter, compared to analysts’ expectations 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. On average, sell-side analysts forecast that Sprout Social, Inc. will post -0.02 EPS for the current year.

Insider Activity

In other Sprout Social news, insider Justyn Russell Howard sold 40,000 shares of the stock in a transaction dated Friday, July 10th. The stock was sold at an average price of $8.28, for a total value of $331,200.00. Following the sale, the insider owned 7,417 shares of the company’s stock, valued at $61,412.76. This trade represents a 84.36% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 9.60% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in Sprout Social by 2.4% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 53,127 shares of the company’s stock valued at $1,168,000 after buying an additional 1,265 shares during the last quarter. Russell Investments Group Ltd. grew its position in shares of Sprout Social by 39.1% during the fourth quarter. Russell Investments Group Ltd. now owns 6,235 shares of the company’s stock worth $70,000 after acquiring an additional 1,752 shares during the last quarter. Tower Research Capital LLC TRC increased its holdings in shares of Sprout Social by 55.5% in the 2nd quarter. Tower Research Capital LLC TRC now owns 5,496 shares of the company’s stock valued at $115,000 after acquiring an additional 1,962 shares during the period. Summit Securities Group LLC increased its holdings in shares of 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 acquiring an additional 2,015 shares during the period. Finally, Headlands Technologies LLC raised its position in Sprout Social by 13.0% in the 2nd quarter. Headlands Technologies LLC now owns 18,573 shares of the company’s stock valued at $388,000 after purchasing an additional 2,131 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.