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

Analyst Ratings Changes

A number of equities research analysts have issued reports on the company. Robert W. Baird boosted their price target on Sprout Social from $38.00 to $40.00 and gave the company a “neutral” rating in a research report on Friday, August 2nd. Oppenheimer lowered their price target 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 price target for the company. in a research report on Thursday, August 22nd. Needham & Company LLC reissued a “buy” rating and set a $55.00 price target on shares of Sprout Social in a research report on Friday. Finally, Cantor Fitzgerald reissued an “overweight” rating and set a $46.00 price target on shares of Sprout Social in a research report on Friday, August 2nd. One equities research analyst has rated the stock with a sell rating, six have given a hold rating and seven have issued a buy rating to the company. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $48.00.

Insider Transactions at Sprout Social

In related news, Director Aaron Edward Frederick Rankin sold 1,181 shares of the stock in a transaction that occurred on Wednesday, September 4th. The stock was sold at an average price of $29.23, for a total value of $34,520.63. Following the completion of the transaction, the director now directly owns 42,122 shares of the company’s stock, valued at $1,231,226.06. This represents a 0.00 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. In other Sprout Social news, insider Justyn Russell Howard sold 20,000 shares of the stock in a transaction on Monday, October 7th. The stock was sold at an average price of $28.23, for a total transaction of $564,600.00. Following the completion of the transaction, the insider now directly owns 7,417 shares of the company’s stock, valued at approximately $209,381.91. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Aaron Edward Frederick Rankin sold 1,181 shares of the stock in a transaction on Wednesday, September 4th. The shares were sold at an average price of $29.23, for a total value of $34,520.63. Following the transaction, the director now directly owns 42,122 shares of the company’s stock, valued at approximately $1,231,226.06. The trade was a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 62,882 shares of company stock worth $1,801,351. 10.97% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Sprout Social

Several large investors have recently modified their holdings of the stock. Vanguard Group Inc. raised its holdings in shares of Sprout Social by 1.8% during the first quarter. Vanguard Group Inc. now owns 5,164,431 shares of the company’s stock worth $308,368,000 after acquiring an additional 93,712 shares in the last quarter. Clearbridge Investments LLC increased its position in Sprout Social by 3.9% during the second quarter. Clearbridge Investments LLC now owns 2,694,797 shares of the company’s stock worth $96,150,000 after buying an additional 100,890 shares during the last quarter. Dorsey Asset Management LLC acquired a new position in Sprout Social during the second quarter worth $61,583,000. Principal Financial Group Inc. increased its position in Sprout Social by 20.0% during the third quarter. Principal Financial Group Inc. now owns 1,199,451 shares of the company’s stock worth $34,868,000 after buying an additional 200,190 shares during the last quarter. Finally, Bamco Inc. NY increased its position in Sprout Social by 25.8% during the first quarter. Bamco Inc. NY now owns 975,000 shares of the company’s stock worth $58,217,000 after buying an additional 200,000 shares during the last quarter.

Sprout Social Trading Down 15.8 %

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

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.