Sprout Social (NASDAQ:SPT) Announces Earnings Results

Sprout Social (NASDAQ:SPT) released its earnings results on Tuesday. The company reported ($0.20) EPS for the quarter, missing analysts’ consensus estimates of $0.15 by ($0.35), Zacks reports. Sprout Social had a negative return on equity of 40.94% and a negative net margin of 17.24%. The firm had revenue of $107.09 million for the quarter, compared to analyst estimates 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 Up 3.1 %

Sprout Social stock opened at $28.09 on Thursday. The company has a market capitalization of $1.61 billion, a price-to-earnings ratio of -23.41 and a beta of 1.06. Sprout Social has a one year low of $25.05 and a one year high of $64.91. The company has a debt-to-equity ratio of 0.19, a current ratio of 0.96 and a quick ratio of 0.96. The company’s fifty day moving average price is $31.73 and its two-hundred day moving average price is $30.54.

Insider Activity

In other news, insider Justyn Russell Howard sold 40,000 shares of the firm’s stock in a transaction dated Wednesday, January 15th. The shares were sold at an average price of $31.67, for a total transaction of $1,266,800.00. Following the completion of the transaction, the insider now directly owns 27,136 shares of the company’s stock, valued at approximately $859,397.12. This trade represents a 59.58 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Karen Walker sold 5,000 shares of the company’s stock in a transaction dated Friday, December 13th. The stock was sold at an average price of $34.24, for a total transaction of $171,200.00. Following the completion of the sale, the director now directly owns 35,665 shares in the company, valued at approximately $1,221,169.60. The trade was a 12.30 % decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 120,265 shares of company stock valued at $3,837,006. 10.97% of the stock is owned by insiders.

Wall Street Analyst Weigh In

SPT has been the subject of a number of analyst reports. Morgan Stanley dropped their price target on Sprout Social from $37.00 to $30.00 and set an “equal weight” rating for the company in a research report on Wednesday. Scotiabank assumed coverage on Sprout Social in a report on Monday, November 18th. They issued a “sector perform” rating and a $28.00 target price on the stock. Stifel Nicolaus reduced their price target on shares of Sprout Social from $45.00 to $34.00 and set a “buy” rating for the company in a research report on Wednesday. Canaccord Genuity Group dropped their price objective 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. Finally, Needham & Company LLC decreased their price target on Sprout Social from $55.00 to $32.00 and set a “buy” rating on the stock in a research note on Wednesday. One investment analyst has rated the stock with a sell rating, seven have assigned a hold rating and seven have given a buy rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $34.08.

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.