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In a recent filing with the Securities and Exchange Commission, Sprout Social, Inc. (NASDAQ:SPT), a $1.86 billion social media management company with impressive gross profit margins of 77%, disclosed that its Chief Financial Officer and Treasurer, Joseph Del Preto, sold 1,500 shares of Class A Common Stock. According to InvestingPro analysis, the company appears undervalued despite current market challenges. The transaction, which took place on January 2, 2025, was executed at a price of $31.17 per share, amounting to a total value of $46,755.
Following this sale, Del Preto retains ownership of 151,573 shares, which includes various Restricted Stock Units (RSUs) scheduled to vest in upcoming quarterly installments. The transaction was conducted under a 10b5-1 plan that Del Preto adopted on August 20, 2024.
In other recent news, Oppenheimer's tenth annual fourth-quarter IT spending strength survey indicates a constructive outlook for IT budget growth through to 2025. The survey findings led to positive adjustments for Agilysys (NASDAQ:AGYS), Inc. and ServiceNow (NYSE:NOW), Inc., with Oppenheimer raising their price targets. However, the results were less optimistic for Sprout Social, Inc., which experienced a lower price target and estimates.
Meanwhile, Scotiabank (TSX:BNS) initiated coverage on Sprout Social with a Sector Perform rating and set a price target of $28.00. This development comes as Sprout Social surpassed $100 million in Q3 revenue for the first time, marking a 20% increase year-over-year. The company's Remaining Performance Obligations (RPO) also experienced a 31% growth year-over-year, reaching $220.7 million.
In the same vein, Sprout Social announced during its Q3 2024 earnings call that it had secured a significant $1.8 million multi-year contract with a global electronics brand. The company's Q4 2024 revenue is projected to be between $106.3 million and $107.1 million. However, restructuring in the R&D department is anticipated, which may result in the elimination of approximately 50 roles. Notwithstanding these changes, Sprout Social maintains its optimism about its growth trajectory.
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