Sprout Social (NASDAQ:SPT) Shares Gap Down on Disappointing Earnings

Sprout Social, Inc. (NASDAQ:SPT)’s share price gapped down before the market opened on Friday following a weaker than expected earnings announcement. 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.

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

Analyst Ratings Changes

A number of research analysts recently issued reports on the stock. Oppenheimer decreased their price objective on shares of Sprout Social from $43.00 to $40.00 and set an “outperform” rating for the company in a report on Thursday, October 24th. Needham & Company LLC reaffirmed a “buy” rating and set a $55.00 price target on shares of Sprout Social in a research report on Friday. Cantor Fitzgerald reiterated an “overweight” rating and issued a $46.00 price target on shares of Sprout Social in a research note on Friday, August 2nd. KeyCorp downgraded shares of Sprout Social from a “sector weight” rating to an “underweight” rating and set a $28.00 target price for the company. in a research note on Thursday, August 22nd. Finally, Barclays lowered their target price 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 equities research analyst has rated the stock with a sell rating, six have assigned a hold rating and seven have assigned a buy rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $48.00.

Insider Buying and Selling at Sprout Social

In other Sprout Social news, CEO Justyn Russell Howard sold 8,595 shares of Sprout Social stock in a transaction that occurred on Tuesday, September 3rd. The stock was sold at an average price of $29.27, for a total transaction of $251,575.65. Following the sale, the chief executive officer now directly owns 302,217 shares of the company’s stock, valued at approximately $8,845,891.59. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. In other Sprout Social news, CFO Preto Joseph Del sold 1,500 shares of the stock in a transaction on Monday, October 7th. The stock was sold at an average price of $28.27, for a total transaction of $42,405.00. Following the sale, the chief financial officer now directly owns 158,614 shares in the company, valued at approximately $4,484,017.78. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Justyn Russell Howard sold 8,595 shares of the business’s stock in a transaction on Tuesday, September 3rd. The stock was sold at an average price of $29.27, for a total value of $251,575.65. Following the completion of the transaction, the chief executive officer now owns 302,217 shares of the company’s stock, valued at $8,845,891.59. This represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 62,882 shares of company stock valued at $1,801,351. 10.97% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Sprout Social

A number of institutional investors and hedge funds have recently modified their holdings of the company. Fidelis Capital Partners LLC purchased a new position in shares of Sprout Social during the 1st quarter worth $27,000. EntryPoint Capital LLC bought a new stake in Sprout Social during the first quarter valued at about $37,000. Covestor Ltd increased its position in Sprout Social by 35,450.0% in the first quarter. Covestor Ltd now owns 711 shares of the company’s stock worth $42,000 after buying an additional 709 shares in the last quarter. Quarry LP raised its stake in shares of Sprout Social by 2,346.9% in the second quarter. Quarry LP now owns 783 shares of the company’s stock worth $28,000 after buying an additional 751 shares during the period. Finally, Bessemer Group Inc. purchased a new position in shares of Sprout Social during the 1st quarter valued at about $61,000.

Sprout Social Trading Down 15.8 %

The company has a market capitalization of $1.49 billion, a P/E ratio of -21.56 and a beta of 0.99. The stock has a 50 day moving average of $28.21 and a 200-day moving average of $32.70. The company has a current ratio of 0.98, a quick ratio of 0.98 and a debt-to-equity ratio of 0.26.

Sprout Social Company Profile

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.