Sprout Social Inc. (NASDAQ: SPT) stock jumped 13.29% on Friday to $58.91 against a previous-day closing price of $52.00. With 1.17 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.71 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $59.53 whereas the lowest price it dropped to was $52.90. The 52-week range on SPT shows that it touched its highest point at $145.42 and its lowest point at $38.39 during that stretch. It currently has a 1-year price target of $81.10.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of SPT was up-trending over the past week, with a rise of 11.89%, but this was down by -6.67% over a month. Three-month performance dropped to -5.91% while six-month performance fell -15.42%. The stock lost -34.04% in the past year, while it has lost -35.04% so far this year. A look at the trailing 12-month EPS for SPT yields -0.59 with Next year EPS estimates of -0.02. For the next quarter, that number is -0.06. This implies an EPS growth rate of 13.40% for this year and 83.30% for next year.
Float and Shares Shorts:
At present, 54.28 million SPT shares are outstanding with a float of 45.55 million shares on hand for trading. On Jul 14, 2022, short shares totaled 4.07 million, which was 7.48% higher than short shares on Jun 14, 2022. In addition to Mr. Justyn Russell Howard as the firm’s Co-Founder, Chairman & CEO, Mr. Ryan Paul Barretto serves as its Pres.
Through their ownership of 95.69% of SPT’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 58.35% of SPT, in contrast to 35.59% held by mutual funds. Shares owned by individuals account for 15.92%. As the largest shareholder in SPT with 7.69% of the stake, The Vanguard Group, Inc. holds 3,568,446 shares worth 3,568,446. A second-largest stockholder of SPT, BlackRock Fund Advisors, holds 2,885,598 shares, controlling over 6.22% of the firm’s shares. Macquarie Investment Management B is the third largest shareholder in SPT, holding 2,414,572 shares or 5.20% stake. With a 3.66% stake in SPT, the Delaware Smid Cap Growth Fund is the largest stakeholder. A total of 1,696,581 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.36% of SPT stock, is the second-largest Mutual Fund holder. It holds 1,093,126 shares valued at 63.48 million. Alger Funds – Small Cap Focus Fun holds 2.30% of the stake in SPT, owning 1,066,310 shares worth 61.92 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SPT since 11 analysts follow the stock currently. There are 8 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 1 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With SPT analysts setting a high price target of $110.00 and a low target of $62.00, the average target price over the next 12 months is $79.80. Based on these targets, SPT could surge 86.73% to reach the target high and rise by 5.25% to reach the target low. Reaching the average price target will result in a growth of 35.46% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. SPT will report FY 2022 earnings on 02/21/2023. Analysts have provided yearly estimates in a range of -$0.12 being high and -$0.13 being low. For SPT, this leads to a yearly average estimate of -$0.12. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Sprout Social Inc. surprised analysts by $0.02 when it reported -$0.04 EPS against a consensus estimate of -$0.06. The surprise factor in the prior quarter was $0.01. Based on analyst estimates, the high estimate for the next quarter is -$0.02 and the low estimate is -$0.04. The average estimate for the next quarter is thus -$0.03.
Summary of Insider Activity:
Insiders traded SPT stock several times over the past three months with 11 Buys and 36 Sells. In these transactions, 146,193 shares were bought while 152,614 shares were sold. The number of buy transactions has increased to 40 while that of sell transactions has risen to 314 over the past year. The total number of shares bought during that period was 1,313,464 while 1,137,302 shares were sold.