Sprout Social director Aaron Rankin sells $581,124 in stock

Published 18/03/2025, 21:06
Sprout Social director Aaron Rankin sells $581,124 in stock

Aaron Rankin, a director at Sprout Social, Inc. (NASDAQ:SPT), has sold 23,646 shares of the company’s Class A common stock, according to a recent SEC filing. The shares were sold at an average price of $24.576, totaling approximately $581,124. The transaction comes as the stock trades near its 52-week low of $22.95, having declined over 56% in the past year. According to InvestingPro analysis, the company currently shows signs of being undervalued despite maintaining impressive gross profit margins of 77%.

The transaction took place on March 17, 2025, under a pre-established 10b5-1 trading plan. Following this sale, Rankin holds no shares of Class A common stock directly associated with this transaction. However, he maintains indirect ownership of Class B common stock through various trusts, which can be converted into Class A shares on a one-for-one basis.

The filing also noted that Rankin’s Class B holdings include shares held by the Aaron Edward Frederick Rankin Revocable Trust and the Rankin Family 2013 Trusts, managed by his spouse, Yeming Shi Rankin.

This transaction is part of Rankin’s broader financial strategy, as outlined in the 10b5-1 plan adopted in December 2024.

In other recent news, Sprout Social Inc . has seen several adjustments to its price targets following the release of its fourth-quarter earnings report. Scotiabank (TSX:BNS) reduced the price target for Sprout Social to $25, citing a slowdown in calculated remaining performance obligation (cRPO) bookings growth and fiscal year 2025 revenue guidance that fell short of consensus expectations. Stifel also lowered its price target to $34 but maintained a Buy rating, noting the company’s strong performance in key areas despite a cautious first-quarter outlook for 2025. Cantor Fitzgerald adjusted its target to $38, with an Overweight rating, reflecting a recalibrated financial outlook that decreased the FY25 revenue estimate by 4.8% but increased the adjusted operating income estimate by 8.6%.

KeyBanc maintained its Underweight rating with a steady price target of $23, highlighting disappointing revenue guidance for 2025, which led to a reset in expectations. Goldman Sachs revised its price target to $29, maintaining a Neutral rating due to a slowdown in year-over-year revenue growth and increased customer budget scrutiny. Despite these challenges, Sprout Social achieved significant milestones, such as closing its largest new business deal with a Fortune 500 financial services company. The company plans to invest in product development and go-to-market strategies to bolster its position in the enterprise market. Analysts are closely monitoring Sprout Social’s ability to navigate current market conditions and return to a growth trajectory that aligns with investor expectations.

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