Sprout Social (NASDAQ:SPT) Issues Q3 Earnings Guidance

Sprout Social (NASDAQ:SPT) issued an update on its third quarter earnings guidance on Thursday morning. The company provided EPS guidance of $0.12 to $0.13 for the period, compared to the consensus EPS estimate of $0.12. The company issued revenue guidance of $101.9 million to $102.1 million, compared to the consensus revenue estimate of $101.89 million. Sprout Social also updated its FY 2024 guidance to 0.450-0.460 EPS.

Sprout Social Stock Performance

Shares of SPT stock traded down $4.33 during trading hours on Friday, hitting $32.93. 1,049,495 shares of the company were exchanged, compared to its average volume of 613,503. The firm has a fifty day simple moving average of $35.08 and a 200 day simple moving average of $47.31. The company has a current ratio of 0.97, a quick ratio of 0.97 and a debt-to-equity ratio of 0.31. Sprout Social has a 52-week low of $25.68 and a 52-week high of $68.41. The stock has a market capitalization of $1.86 billion, a price-to-earnings ratio of -26.34 and a beta of 1.00.

Sprout Social (NASDAQ:SPT) last released its quarterly earnings data on Thursday, May 2nd. The company reported ($0.22) EPS for the quarter, topping the consensus estimate of ($0.32) by $0.10. The company had revenue of $96.78 million during the quarter, compared to the consensus estimate of $97.29 million. Sprout Social had a negative net margin of 19.60% and a negative return on equity of 44.88%. Research analysts predict that Sprout Social will post -0.84 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on SPT. Robert W. Baird boosted their price target on shares of Sprout Social from $38.00 to $40.00 and gave the company a neutral rating in a research report on Friday. Piper Sandler lowered shares of Sprout Social from an overweight rating to a neutral rating and cut their target price for the stock from $66.00 to $40.00 in a research report on Friday, May 3rd. Oppenheimer lowered their price target on shares of Sprout Social from $76.00 to $43.00 and set an outperform rating for the company in a research note on Friday, May 3rd. BTIG Research downgraded shares of Sprout Social from a buy rating to a neutral rating in a research note on Friday, May 3rd. Finally, The Goldman Sachs Group downgraded shares of Sprout Social from a buy rating to a neutral rating and lowered their price target for the stock from $80.00 to $44.00 in a research note on Friday, May 3rd. Seven investment analysts have rated the stock with a hold rating and eight have given a buy rating to the stock. According to MarketBeat.com, the stock currently has an average rating of Moderate Buy and a consensus target price of $56.57.

Insider Activity

In other news, President Ryan Paul Barretto sold 15,586 shares of the stock in a transaction that occurred on Tuesday, June 4th. The shares were sold at an average price of $32.14, for a total transaction of $500,934.04. Following the sale, the president now owns 484,115 shares in the company, valued at $15,559,456.10. The transaction was disclosed in a filing with the SEC, which is available at this link. In related news, President Ryan Paul Barretto sold 15,586 shares of the stock in a transaction that occurred on Tuesday, June 4th. The shares were sold at an average price of $32.14, for a total transaction of $500,934.04. Following the transaction, the president now owns 484,115 shares in the company, valued at $15,559,456.10. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, CEO Justyn Russell Howard sold 20,000 shares of the stock in a transaction that occurred on Monday, July 8th. The shares were sold at an average price of $36.13, for a total transaction of $722,600.00. Following the transaction, the chief executive officer now owns 398,229 shares in the company, valued at approximately $14,388,013.77. The disclosure for this sale can be found here. Insiders have sold a total of 92,470 shares of company stock worth $3,063,248 over the last 90 days. 10.97% of the stock is currently owned by 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.