Is Sprout Social Stock a Good Investment?
Sprout Social Investment Advice | SPT |
- Examine Sprout Social's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Sprout Social's leadership team and their track record. Good management can help Sprout Social navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Application Software space and any emerging trends that could impact Sprout Social's business and its evolving consumer preferences.
- Compare Sprout Social's performance and market position to its competitors. Analyze how Sprout Social is positioned in terms of product offerings, innovation, and market share.
- Check if Sprout Social pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Sprout Social's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Sprout Social stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Sprout Social is a good investment.
Sell | Buy |
Strong Hold
Market Performance | Insignificant | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Not Available | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Sprout Social Stock
Researching Sprout Social's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 98.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 0.47. Sprout Social recorded a loss per share of 1.2. The entity had not issued any dividends in recent years.
To determine if Sprout Social is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Sprout Social's research are outlined below:
| The company reported the last year's revenue of 333.64 M. Reported Net Loss for the year was (66.43 M) with profit before taxes, overhead, and interest of 303.38 M. | |
| Over 98.0% of the company shares are owned by institutional investors |
Sprout Social uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Sprout Social. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Sprout Social's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 20th of February 2024 Upcoming Quarterly Report | View | |
| 7th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 20th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Sprout Social's market capitalization trends
The company currently falls under 'Mid-Cap' category with a total capitalization of 1.78 B.Sprout Social's profitablity analysis
The company has Net Profit Margin of (0.17) %, which means that it does not effectively control expenditures or properly executes on its pricing strategies. This is way below average. In the same way, it shows Net Operating Margin of (0.16) %, which entails that for every $100 of revenue, it lost $0.16.Determining Sprout Social's profitability involves analyzing its financial statements and using various financial metrics to determine if Sprout Social is a good buy. For example, gross profit margin measures Sprout Social's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Sprout Social's profitability and make more informed investment decisions.
Please note, the imprecision that can be found in Sprout Social's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Sprout Social. Check Sprout Social's Beneish M Score to see the likelihood of Sprout Social's management manipulating its earnings.
Basic technical analysis of Sprout Stock
As of the 17th of February 2025, Sprout Social has the Coefficient Of Variation of 1881.46, risk adjusted performance of 0.0448, and Semi Deviation of 2.18. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Sprout Social, as well as the relationship between them.Sprout Social's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Sprout Social insiders, such as employees or executives, is commonly permitted as long as it does not rely on Sprout Social's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Sprout Social insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Sprout Social's Outstanding Corporate Bonds
Sprout Social issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Sprout Social uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Sprout bonds can be classified according to their maturity, which is the date when Sprout Social has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| SPIRIT AEROSYSTEMS INC Corp BondUS85205TAG58 | View | |
| SPR 9375 30 NOV 29 Corp BondUS85205TAN00 | View | |
| SPIRIT AEROSYSTEMS INC Corp BondUS85205TAK60 | View | |
| SPRINT P 7625 Corp BondUS85207UAK16 | View | |
| MPLX LP 4125 Corp BondUS55336VAK61 | View | |
| MPLX LP 4875 Corp BondUS55336VAJ98 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| SPRINT NEXTEL P Corp BondUS85208NAE04 | View |
Understand Sprout Social's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Sprout Social's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0448 | |||
| Market Risk Adjusted Performance | 0.3229 | |||
| Mean Deviation | 1.88 | |||
| Semi Deviation | 2.18 | |||
| Downside Deviation | 2.41 | |||
| Coefficient Of Variation | 1881.46 | |||
| Standard Deviation | 2.51 | |||
| Variance | 6.32 | |||
| Information Ratio | 0.0487 | |||
| Jensen Alpha | 0.1232 | |||
| Total Risk Alpha | 0.1197 | |||
| Sortino Ratio | 0.0509 | |||
| Treynor Ratio | 0.3129 | |||
| Maximum Drawdown | 13.02 | |||
| Value At Risk | (3.72) | |||
| Potential Upside | 5.41 | |||
| Downside Variance | 5.79 | |||
| Semi Variance | 4.75 | |||
| Expected Short fall | (2.04) | |||
| Skewness | 0.3533 | |||
| Kurtosis | 0.859 |
| Risk Adjusted Performance | 0.0448 | |||
| Market Risk Adjusted Performance | 0.3229 | |||
| Mean Deviation | 1.88 | |||
| Semi Deviation | 2.18 | |||
| Downside Deviation | 2.41 | |||
| Coefficient Of Variation | 1881.46 | |||
| Standard Deviation | 2.51 | |||
| Variance | 6.32 | |||
| Information Ratio | 0.0487 | |||
| Jensen Alpha | 0.1232 | |||
| Total Risk Alpha | 0.1197 | |||
| Sortino Ratio | 0.0509 | |||
| Treynor Ratio | 0.3129 | |||
| Maximum Drawdown | 13.02 | |||
| Value At Risk | (3.72) | |||
| Potential Upside | 5.41 | |||
| Downside Variance | 5.79 | |||
| Semi Variance | 4.75 | |||
| Expected Short fall | (2.04) | |||
| Skewness | 0.3533 | |||
| Kurtosis | 0.859 |
Consider Sprout Social's intraday indicators
Sprout Social intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Sprout Social stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Sprout Social time-series forecasting models is one of many Sprout Social's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Sprout Social's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.
Sprout Stock media impact
Far too much social signal, news, headlines, and media speculation about Sprout Social that are available to investors today. That information is available publicly through Sprout media outlets and privately through word of mouth or via Sprout internal channels. However, regardless of the origin, that massive amount of Sprout data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Sprout Social news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Sprout Social relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Sprout Social's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Sprout Social alpha.
Sprout Social Corporate Management
| Gerard Murnaghan | VP EMEA | Profile | |
| Jamie Gilpin | Chief Officer | Profile | |
| Gilbert Lara | CoFounder Officer | Profile | |
| Justyn Howard | Chairman CoFounder | Profile | |
| Kristin Johnson | Vice Communications | Profile | |
| Scott Morris | Chief Officer | Profile |
Additional Tools for Sprout Stock Analysis
When running Sprout Social's price analysis, check to measure Sprout Social's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Sprout Social is operating at the current time. Most of Sprout Social's value examination focuses on studying past and present price action to predict the probability of Sprout Social's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Sprout Social's price. Additionally, you may evaluate how the addition of Sprout Social to your portfolios can decrease your overall portfolio volatility.