Sprout Social (NASDAQ:SPT) underwent analysis by 16 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.
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 | 6 | 4 | 6 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 1 | 0 | 0 | 0 | 0 |
| 2M Ago | 3 | 3 | 4 | 0 | 0 |
| 3M Ago | 2 | 1 | 1 | 0 | 0 |
Analysts have set 12-month price targets for Sprout Social, revealing an average target of $53.81, a high estimate of $76.00, and a low estimate of $38.00. A decline of 20.33% from the prior average price target is evident in the current average.
Investigating Analyst Ratings: An Elaborate Study
The standing of Sprout Social among financial experts is revealed through an in-depth exploration 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 |
|---|---|---|---|---|---|
| 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 |
| Scott Berg | Needham | Maintains | Buy | $75.00 | - |
| Brian Schwartz | Oppenheimer | Announces | Outperform | $76.00 | - |
| Elizabeth Porter | Morgan Stanley | Lowers | Equal-Weight | $65.00 | $73.00 |
| Scott Berg | Needham | Maintains | Buy | $75.00 | - |
Key Insights:
- Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Sprout Social. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect 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.
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Sprout Social's market standing. Stay informed and make well-considered decisions with our Ratings Table.
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Discovering Sprout Social: A Closer Look
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.
Breaking Down Sprout Social's Financial Performance
Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.
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. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.
Net Margin: Sprout Social's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -14.03%, the company may face hurdles in effective cost management.
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 falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -3.45%, the company may face hurdles in generating optimal returns from its assets.
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.
The Core of Analyst Ratings: What Every Investor Should Know
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.
This article was generated by Benzinga's automated content engine and reviewed by an editor.