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Sprout Social Inc (NASDAQ:SPT). stock has reached a new 52-week low, hitting 18.29 USD. This milestone comes amid a challenging year for the company, which has seen its stock price decline by 51.05% over the past 12 months. Despite the decline, InvestingPro analysis shows the company maintains impressive gross profit margins of 77.58% and achieved 17.79% revenue growth in the last twelve months. The social media management software provider has faced a tough market environment, impacting its stock performance significantly. This new low reflects broader market trends and company-specific challenges, as investors continue to evaluate the company’s long-term growth prospects and financial health in a competitive industry. According to InvestingPro, 7 analysts have revised their earnings upwards for the upcoming period, and the company appears undervalued based on Fair Value calculations. Discover more insights and 8 additional ProTips with an InvestingPro subscription, including detailed analysis in the comprehensive Pro Research Report.
In other recent news, Sprout Social reported strong financial results for the first quarter of 2025, with total revenue reaching $109.3 million, marking a 13% year-over-year increase. The company also achieved a record non-GAAP operating margin of 11.5%. Additionally, Sprout Social completed the acquisition of NewsWhip, an AI-powered predictive media intelligence company, for $55 million in cash, with potential earnouts of up to $10 million. This acquisition aims to bolster Sprout Social’s capabilities in the predictive intelligence market.
Analyst activity around Sprout Social has been notable. Cantor Fitzgerald initiated coverage with a Neutral rating and a price target of $24, highlighting the company’s market share gains and potential growth opportunities. Needham maintained a Buy rating with a $32 price target, expressing optimism based on insights from a customer call with Caesars (NASDAQ:CZR) Entertainment. Meanwhile, Oppenheimer adjusted its price target to $32 from $38 but upheld an Outperform rating, citing record margins and cash generation despite some concerns over growth deceleration.
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