A better buy-in window may exist right now for Sprout Social Inc. (SPT)

Sprout Social Inc. (NASDAQ: SPT) stock jumped 1.66% on Thursday to $50.31 against a previous-day closing price of $49.49. With 0.55 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.62 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $50.33 whereas the lowest price it dropped to was $49.56. The 52-week range on SPT shows that it touched its highest point at $74.07 and its lowest point at $37.00 during that stretch. It currently has a 1-year price target of $61.25. Beta for the stock currently stands at 0.93.

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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 down-trending over the past week, with a drop of -1.64%, but this was up by 8.54% over a month. Three-month performance dropped to -2.95% while six-month performance fell -17.08%. The stock lost -18.78% in the past year, while it has lost -10.89% so far this year. A look at the trailing 12-month EPS for SPT yields -0.89 with Next year EPS estimates of 0.20. For the next quarter, that number is -0.05. This implies an EPS growth rate of -72.30% for this year and 159.74% for next year.

Float and Shares Shorts:

At present, 55.50 million SPT shares are outstanding with a float of 47.61 million shares on hand for trading. On Aug 14, 2023, short shares totaled 5.88 million, which was 10.55% higher than short shares on Jul 13, 2023. In addition to SPY as the firm’s SPDR S&P 500, SPR serves as its Spirit Aerosystems Holdings, In.

Institutional Ownership:

Through their ownership of 106.96% of SPT’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 64.93% of SPT, in contrast to 48.02% held by mutual funds. Shares owned by individuals account for 15.01%. As the largest shareholder in SPT with 9.90% of the stake, The Vanguard Group, Inc. holds 4,756,566 shares worth 4,756,566. A second-largest stockholder of SPT, BlackRock Fund Advisors, holds 3,223,703 shares, controlling over 6.71% of the firm’s shares. Wellington Management Co. LLP is the third largest shareholder in SPT, holding 3,100,028 shares or 6.45% stake. With a 3.12% stake in SPT, the ClearBridge Small Cap Growth Fund is the largest stakeholder. A total of 1,499,874 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 2.93% of SPT stock, is the second-largest Mutual Fund holder. It holds 1,407,544 shares valued at 80.43 million. Vanguard Small Cap Index Fund holds 2.46% of the stake in SPT, owning 1,183,989 shares worth 67.65 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, SPT reported revenue of $61.43M and operating income of -$14.53M. The EBITDA in the recently reported quarter was -$13.35M and diluted EPS was -$0.27.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SPT since 0 analysts follow the stock currently. 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 $75.00 and a low target of $44.00, the average target price over the next 12 months is $61.25. Based on these targets, SPT could surge 49.08% to reach the target high and fall by -12.54% to reach the target low. Reaching the average price target will result in a growth of 21.75% 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.

Summary of Insider Activity:

Insiders traded SPT stock several times over the past three months with 2 Buys and 12 Sells. In these transactions, 18,432 shares were bought while 47,275 shares were sold. The number of buy transactions has increased to 29 while that of sell transactions has risen to 137 over the past year. The total number of shares bought during that period was 679,191 while 502,355 shares were sold.

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