Sprout Social (NASDAQ:SPT) Shares Gap Down Following Weak Earnings

Shares of Sprout Social, Inc. (NASDAQ:SPT - Get Free Report) gapped down prior to trading on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $31.00, but opened at $29.02. Sprout Social shares last traded at $26.62, with a volume of 99,040 shares traded.

The company reported ($0.28) EPS for the quarter, missing analysts' consensus estimates of ($0.22) by ($0.06). The company had revenue of $102.64 million for the quarter, compared to analyst estimates of $102.04 million. Sprout Social had a negative net margin of 19.60% and a negative return on equity of 44.38%.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on SPT. Needham & Company LLC reissued a "buy" rating and issued a $55.00 price objective on shares of Sprout Social in a research report on Friday. Robert W. Baird increased their price target on Sprout Social from $38.00 to $40.00 and gave the stock a "neutral" rating in a research note on Friday, August 2nd. Oppenheimer lowered their price objective on Sprout Social from $43.00 to $40.00 and set an "outperform" rating for the company in a research report on Thursday, October 24th. KeyCorp downgraded Sprout Social from a "sector weight" rating to an "underweight" rating and set a $28.00 target price on the stock. in a research report on Thursday, August 22nd. Finally, Barclays decreased their price target on Sprout Social from $48.00 to $38.00 and set an "overweight" rating on the stock in a research note on Friday, October 11th. One analyst has rated the stock with a sell rating, six have given a hold rating and seven have given a buy rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Hold" and an average price target of $48.00.

Insider Buying and Selling at Sprout Social

In other Sprout Social news, CFO Preto Joseph Del sold 1,500 shares of the business's stock in a transaction dated Tuesday, September 3rd. The stock was sold at an average price of $29.81, for a total transaction of $44,715.00. Following the transaction, the chief financial officer now owns 162,624 shares in the company, valued at $4,847,821.44. The trade was a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. In other Sprout Social news, President Ryan Paul Barretto sold 13,306 shares of the firm's stock in a transaction that occurred on Wednesday, September 4th. The stock was sold at an average price of $29.23, for a total transaction of $388,934.38. Following the completion of the sale, the president now owns 470,809 shares in the company, valued at $13,761,747.07. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Preto Joseph Del sold 1,500 shares of Sprout Social stock in a transaction that occurred on Tuesday, September 3rd. The stock was sold at an average price of $29.81, for a total value of $44,715.00. Following the sale, the chief financial officer now owns 162,624 shares in the company, valued at $4,847,821.44. This represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 62,882 shares of company stock valued at $1,801,351 over the last ninety days. Corporate insiders own 10.97% of the company's stock.

Institutional Trading of Sprout Social

Several institutional investors have recently added to or reduced their stakes in SPT. Fidelis Capital Partners LLC acquired a new stake in Sprout Social during the first quarter valued at approximately $27,000. SG Americas Securities LLC bought a new position in shares of Sprout Social during the first quarter valued at approximately $168,000. Swiss National Bank lifted its holdings in shares of Sprout Social by 0.8% in the 1st quarter. Swiss National Bank now owns 96,241 shares of the company's stock worth $5,747,000 after purchasing an additional 800 shares during the last quarter. Sei Investments Co. boosted its position in Sprout Social by 3.5% during the 1st quarter. Sei Investments Co. now owns 89,690 shares of the company's stock valued at $5,355,000 after purchasing an additional 3,042 shares during the period. Finally, Russell Investments Group Ltd. grew its stake in Sprout Social by 2.8% during the 1st quarter. Russell Investments Group Ltd. now owns 39,352 shares of the company's stock worth $2,350,000 after buying an additional 1,060 shares during the last quarter.

Sprout Social Price Performance

The stock has a market capitalization of $1.52 billion, a price-to-earnings ratio of -21.56 and a beta of 0.99. The company has a debt-to-equity ratio of 0.26, a current ratio of 0.98 and a quick ratio of 0.98. The company has a 50-day simple moving average of $28.21 and a two-hundred day simple moving average of $32.70.

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.