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 |
Cautious Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | 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 0.44. Sprout Social recorded a loss per share of 1.09. 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:
| Sprout Social generated a negative expected return over the last 90 days | |
| The company reported the last year's revenue of 405.91 M. Reported Net Loss for the year was (61.97 M) with profit before taxes, overhead, and interest of 314.5 M. | |
| Over 98.0% of the company shares are owned by institutional investors | |
| Latest headline from news.google.com: Disposition of 23646 shares by Aaron Rankin of Sprout Social at 24.576 subject to Rule 16b-3 |
Sprout Social Quarterly Cash And Short Term Investments |
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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 |
Earnings surprises can significantly impact Sprout Social's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Sprout Social's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2024-08-01 | 2024-06-30 | 0.08 | 0.09 | 0.01 | 12 | ||
2022-05-03 | 2022-03-31 | -0.04 | -0.03 | 0.01 | 25 | ||
2022-11-03 | 2022-09-30 | -0.04 | -0.02 | 0.02 | 50 | ||
2022-08-02 | 2022-06-30 | -0.06 | -0.04 | 0.02 | 33 | ||
2022-02-22 | 2021-12-31 | -0.07 | -0.05 | 0.02 | 28 | ||
2024-02-20 | 2023-12-31 | -0.0038 | 0.02 | 0.0238 | 626 | ||
2020-11-09 | 2020-09-30 | -0.12 | -0.09 | 0.03 | 25 | ||
2025-02-18 | 2024-12-31 | 0.1515 | 0.19 | 0.0385 | 25 |
Know Sprout Social's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Sprout Social is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Sprout Social backward and forwards among themselves. Sprout Social's institutional investor refers to the entity that pools money to purchase Sprout Social's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Panagora Asset Management Inc | 2024-12-31 | 204.8 K |
Sprout Social's market capitalization trends
The company currently falls under 'Mid-Cap' category with a total capitalization of 1.45 B.Market Cap |
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Sprout Social's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.22) | (0.23) | |
| Return On Capital Employed | (0.29) | (0.31) | |
| Return On Assets | (0.14) | (0.15) | |
| Return On Equity | (0.37) | (0.39) |
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.
Sprout Social's Earnings Breakdown by Geography
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.
Evaluate Sprout Social's management efficiency
Sprout Social has Return on Asset of (0.0869) % which means that on every $100 spent on assets, it lost $0.0869. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of (0.3988) %, meaning that it generated no profit with money invested by stockholders. Sprout Social's management efficiency ratios could be used to measure how well Sprout Social manages its routine affairs as well as how well it operates its assets and liabilities. Return On Tangible Assets is likely to drop to -0.23 in 2025. Return On Capital Employed is likely to drop to -0.31 in 2025. At this time, Sprout Social's Total Current Liabilities is comparatively stable compared to the past year. Change To Liabilities is likely to gain to about 13.9 M in 2025, whereas Liabilities And Stockholders Equity is likely to drop slightly above 265.4 M in 2025.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 2.93 | 1.89 | |
| Tangible Book Value Per Share | 0.41 | 0.39 | |
| Enterprise Value Over EBITDA | (36.60) | (38.43) | |
| Price Book Value Ratio | 10.50 | 11.30 | |
| Enterprise Value Multiple | (36.60) | (38.43) | |
| Price Fair Value | 10.50 | 11.30 | |
| Enterprise Value | 1.7 B | 1.6 B |
Effective leadership at Sprout Social drives its competitive edge in the market. Our analysis focuses on how this translates to financial performance and stock value.
Beta 1.108 |
Basic technical analysis of Sprout Stock
As of the 23rd of March, Sprout Social has the Risk Adjusted Performance of (0.15), coefficient of variation of (566.62), and Variance of 5.75. 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.
| Dana 575 percent Corp BondUS235822AB96 | View | |
| 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 | |
| SPRINT NEXTEL P Corp BondUS85208NAE04 | View | |
| Sprint 6875 percent Corp BondUS852060AD48 | View | |
| Sprint 875 percent Corp BondUS852060AT99 | 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 | (0.15) | |||
| Market Risk Adjusted Performance | (0.53) | |||
| Mean Deviation | 1.84 | |||
| Coefficient Of Variation | (566.62) | |||
| Standard Deviation | 2.4 | |||
| Variance | 5.75 | |||
| Information Ratio | (0.15) | |||
| Jensen Alpha | (0.38) | |||
| Total Risk Alpha | (0.25) | |||
| Treynor Ratio | (0.54) | |||
| Maximum Drawdown | 13.02 | |||
| Value At Risk | (4.31) | |||
| Potential Upside | 3.08 | |||
| Skewness | 0.2578 | |||
| Kurtosis | 0.7872 |
| Risk Adjusted Performance | (0.15) | |||
| Market Risk Adjusted Performance | (0.53) | |||
| Mean Deviation | 1.84 | |||
| Coefficient Of Variation | (566.62) | |||
| Standard Deviation | 2.4 | |||
| Variance | 5.75 | |||
| Information Ratio | (0.15) | |||
| Jensen Alpha | (0.38) | |||
| Total Risk Alpha | (0.25) | |||
| Treynor Ratio | (0.54) | |||
| Maximum Drawdown | 13.02 | |||
| Value At Risk | (4.31) | |||
| Potential Upside | 3.08 | |||
| Skewness | 0.2578 | |||
| Kurtosis | 0.7872 |
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 Corporate Filings
| 20th of March 2025 Other Reports | ViewVerify | |
F4 | 18th of March 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
10K | 26th of February 2025 Annual report required by the U.S. Securities and Exchange Commission (SEC) of a company financial performance | ViewVerify |
8K | 25th of February 2025 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
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 Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Sprout Social can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Sprout Social Historical Investor Sentiment
Investor biases related to Sprout Social's public news can be used to forecast risks associated with an investment in Sprout. The trend in average sentiment can be used to explain how an investor holding Sprout can time the market purely based on public headlines and social activities around Sprout Social. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Sprout Social's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Sprout Social and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Sprout Social news discussions. The higher the estimate score, the more favorable the investor's outlook on Sprout Social.
Sprout Social Maximum Pain Price Across May 16th 2025 Option Contracts
Sprout Social's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Sprout Social close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Sprout Social's options.
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.