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Ryan Paul Barretto, the CEO of Sprout Social, Inc. (NASDAQ:SPT), has sold shares of the company's Class A common stock worth approximately $334,269. The transaction, which took place on April 4, involved the sale of 16,800 shares at prices ranging from $19.50 to $20.26 per share. The sale comes as the stock trades near its 52-week low of $19.21, having declined over 63% in the past year. According to InvestingPro analysis, the company maintains impressive gross profit margins of 77.5%.
Following this transaction, Barretto holds 136,575 shares indirectly through trusts, while his direct holdings amount to 820,526 shares. The sale was conducted under a pre-established 10b5-1 trading plan, which Barretto adopted on August 20, 2024.
This move is part of standard financial planning, allowing executives to sell shares at predetermined times to diversify their financial portfolios.
In other recent news, Sprout Social Inc . has seen various adjustments to its price targets by several analyst firms following its latest financial reports. Sprout Social's fourth-quarter results showed a slowdown in year-over-year revenue growth to approximately 14%, with fiscal year 2025 revenue guidance set at 11%, falling short of the expected consensus of 14%. Scotiabank (TSX:BNS) reduced its price target for Sprout Social to $25 from $28, maintaining a Sector Perform rating, while Stifel adjusted its target to $34 from $45, continuing to recommend the stock as a Buy. Cantor Fitzgerald also revised its price target to $38 from $42, keeping an Overweight rating, and Goldman Sachs lowered its target to $29 from $34, maintaining a Neutral rating.
KeyBanc retained its Underweight rating with a steady price target of $23, citing a reset in revenue expectations for 2025. Despite the challenges, Sprout Social reported strong fourth-quarter results, including nearly 30% growth in annual recurring revenue (ARR) and improvements in gross retention and enterprise segment momentum. The company has been focusing on product development and go-to-market strategies to strengthen its position in the enterprise market segment. Analysts have noted that the company's cautious revenue guidance for 2025 reflects a conservative stance amid challenging market conditions. Sprout Social's ability to navigate these challenges and return to growth will be closely watched by investors and analysts alike.
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