Sprout Social (NASDAQ:SPT) Releases Quarterly Earnings Results, Misses Estimates By $0.35 EPS

Sprout Social (NASDAQ:SPT) posted its quarterly earnings data 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 return on equity of 40.94% and a negative net margin of 17.24%. 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 2.4 %

Shares of NASDAQ:SPT traded down $0.68 during trading on Tuesday, reaching $27.25. 702,184 shares of the company traded hands, compared to its average volume of 552,959. 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 52-week low of $25.05 and a 52-week high of $65.32. The firm has a market capitalization of $1.56 billion, a price-to-earnings ratio of -22.71 and a beta of 1.06. The business’s fifty day moving average is $31.97 and its 200-day moving average is $30.59.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on the stock. Piper Sandler decreased their price target on shares of Sprout Social from $40.00 to $29.00 and set a “neutral” rating on the stock in a report on Monday, November 11th. Morgan Stanley increased their target price on Sprout Social from $36.00 to $37.00 and gave the company an “equal weight” rating in a research note on Monday, January 13th. Jefferies Financial Group lifted their price target on Sprout Social from $34.00 to $42.00 and gave the stock a “buy” rating in a research note on Monday, February 3rd. Oppenheimer reduced their price objective on Sprout Social from $40.00 to $38.00 and set an “outperform” rating on the stock in a research report on Tuesday, December 3rd. Finally, Scotiabank began coverage on Sprout Social in a report on Monday, November 18th. They set a “sector perform” rating and a $28.00 price objective on the stock. One investment analyst has rated the stock with a sell rating, seven have assigned a hold rating and six have assigned a buy rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and an average price target of $39.58.

Insider Buying and Selling

In related news, Director Karen Walker sold 5,000 shares of the firm’s stock in a transaction dated Monday, January 13th. The stock was sold at an average price of $30.26, for a total value of $151,300.00. Following the sale, the director now directly owns 30,665 shares of the company’s stock, valued at $927,922.90. This trade represents a 14.02 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Ryan Paul Barretto sold 13,465 shares of the business’s stock in a transaction dated Tuesday, December 3rd. The shares were sold at an average price of $31.45, for a total value of $423,474.25. Following the transaction, the chief executive officer now owns 546,343 shares in the company, valued at approximately $17,182,487.35. This represents a 2.41 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 120,265 shares of company stock valued at $3,837,006 over the last three months. 10.97% of the stock is owned by company insiders.

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.