Sprout Social (NASDAQ:SPT) Releases Earnings Results

Sprout Social (NASDAQ:SPT - Get Free Report) posted its earnings results on Tuesday. The company reported ($0.20) earnings per share for the quarter, missing the consensus estimate of $0.15 by ($0.35), Zacks reports. Sprout Social had a negative net margin of 17.24% and a negative return on equity of 40.94%. The business had revenue of $107.09 million for the quarter, compared to analysts' expectations of $106.74 million. Sprout Social updated its FY 2025 guidance to 0.650-0.740 EPS and its Q1 2025 guidance to 0.140-0.160 EPS.

Sprout Social Trading Down 3.0 %

SPT traded down $0.83 during trading on Friday, hitting $26.52. 910,023 shares of the company's stock were exchanged, compared to its average volume of 588,031. The company has a current ratio of 0.96, a quick ratio of 0.96 and a debt-to-equity ratio of 0.19. Sprout Social has a 1 year low of $25.05 and a 1 year high of $64.91. The stock has a 50 day moving average price of $31.51 and a 200 day moving average price of $30.48. The firm has a market cap of $1.52 billion, a P/E ratio of -22.10 and a beta of 1.06.

Insiders Place Their Bets

In other news, insider Justyn Russell Howard sold 40,000 shares of the company's stock in a transaction on Wednesday, January 15th. The shares were sold at an average price of $31.67, for a total value of $1,266,800.00. Following the completion of the transaction, the insider now directly owns 27,136 shares in the company, valued at approximately $859,397.12. This represents a 59.58 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Ryan Paul Barretto sold 13,465 shares of the company's stock in a transaction on Tuesday, December 3rd. The shares were sold at an average price of $31.45, for a total transaction of $423,474.25. Following the completion of the transaction, the chief executive officer now owns 546,343 shares of the company's stock, valued at $17,182,487.35. This trade represents a 2.41 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 120,265 shares of company stock worth $3,837,006 over the last ninety days. 10.97% of the stock is owned by company insiders.

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Analysts Set New Price Targets

Several research firms have weighed in on SPT. Piper Sandler dropped their target price on shares of Sprout Social from $29.00 to $27.00 and set a "neutral" rating for the company in a report on Wednesday. Barclays decreased their price target on shares of Sprout Social from $38.00 to $34.00 and set an "overweight" rating on the stock in a research note on Wednesday. Canaccord Genuity Group decreased their price target on shares of Sprout Social from $40.00 to $35.00 and set a "buy" rating on the stock in a research note on Wednesday. The Goldman Sachs Group decreased their price target on shares of Sprout Social from $34.00 to $29.00 and set a "neutral" rating on the stock in a research note on Wednesday. Finally, Scotiabank decreased their price target on shares of Sprout Social from $28.00 to $25.00 and set a "sector perform" rating on the stock in a research note on Thursday. One research analyst has rated the stock with a sell rating, seven have assigned a hold rating and seven have issued a buy rating to the company. According to data from MarketBeat, Sprout Social has an average rating of "Hold" and an average price target of $33.85.

About Sprout Social

Sprout Social, Inc designs, develops, and operates a web-based social media management platform in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company provides cloud software for social messaging, data and workflows in a unified system of record, intelligence, and action.