Assessing Sprout Social: Insights From 14 Financial Analysts
Analysts' ratings for Sprout Social (NASDAQ:SPT) over the last quarter vary from bullish to bearish, as provided by 14 analysts.
The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 5 | 4 | 5 | 0 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 0 | 1 | 1 | 0 | 0 |
| 2M Ago | 1 | 0 | 0 | 0 | 0 |
| 3M Ago | 3 | 3 | 4 | 0 | 0 |
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $48.07, along with a high estimate of $55.00 and a low estimate of $38.00. Highlighting a 26.05% decrease, the current average has fallen from the previous average price target of $65.00.
Diving into Analyst Ratings: An In-Depth Exploration
A clear picture of Sprout Social's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Scott Berg | Needham | Maintains | Buy | $55.00 | $55.00 |
| Raimo Lenschow | Barclays | Lowers | Overweight | $48.00 | $50.00 |
| Rob Oliver | Baird | Lowers | Neutral | $38.00 | $45.00 |
| Scott Berg | Needham | Maintains | Buy | $55.00 | $55.00 |
| Scott Berg | Needham | Maintains | Buy | $55.00 | $55.00 |
| Chris Merwin | Goldman Sachs | Lowers | Neutral | $44.00 | $80.00 |
| David Hynes | Canaccord Genuity | Lowers | Buy | $50.00 | $70.00 |
| Elizabeth Porter | Morgan Stanley | Lowers | Equal-Weight | $49.00 | $65.00 |
| Brett Knoblauch | Cantor Fitzgerald | Lowers | Overweight | $46.00 | $74.00 |
| Raimo Lenschow | Barclays | Lowers | Overweight | $50.00 | $72.00 |
| Brian Schwartz | Oppenheimer | Lowers | Outperform | $43.00 | $76.00 |
| Scott Berg | Needham | Lowers | Buy | $55.00 | $75.00 |
| Rob Oliver | Baird | Lowers | Neutral | $45.00 | $72.00 |
| Clarke Jeffries | Piper Sandler | Lowers | Neutral | $40.00 | $66.00 |
Key Insights:
- Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Sprout Social. This insight gives a snapshot of analysts' perspectives on the current state of the company.
- Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Sprout Social compared to the broader market.
- Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Sprout Social's stock. This comparison reveals trends in analysts' expectations over time.
To gain a panoramic view of Sprout Social's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.
Stay up to date on Sprout Social analyst ratings.
All You Need to Know About Sprout Social
Sprout Social Inc develops a cloud software that brings together social messaging, data and workflows in a unified system of record, intelligence, and action. The firm generates majority revenue from software subscriptions.
Understanding the Numbers: Sprout Social's Finances
Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.
Positive Revenue Trend: Examining Sprout Social's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 28.68% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.
Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -14.03%, the company may need to address challenges in effective cost control.
Return on Equity (ROE): Sprout Social's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -9.31%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): Sprout Social's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -3.45%, the company may face hurdles in achieving optimal financial returns.
Debt Management: Sprout Social's debt-to-equity ratio is below the industry average at 0.43, reflecting a lower dependency on debt financing and a more conservative financial approach.
How Are Analyst Ratings Determined?
Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.
Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.
This article was generated by Benzinga's automated content engine and reviewed by an editor.