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Howard Justyn Russell, the Executive Chair of Sprout Social, Inc. (NASDAQ:SPT), a social media management company with a market capitalization of $1.8 billion, sold a significant portion of his holdings in the company, according to a recent SEC filing. According to InvestingPro data, the company maintains impressive gross profit margins of 77% despite not being profitable over the last twelve months. On February 6, Russell sold a total of 39,000 shares of Class A Common Stock, generating approximately $1.3 million. The shares were sold in two separate transactions at weighted average prices ranging from $32.483 to $33.095 per share.
Following these sales, Russell retains 7,417 shares of Class A Common Stock. The transactions were executed under a 10b5-1 plan, which Russell adopted in September 2024.
In other recent news, Oppenheimer’s tenth annual fourth-quarter IT spending strength survey has raised targets for Agilysys (NASDAQ:AGYS) and ServiceNow (NYSE:NOW). The survey, which interviewed 301 buyers, indicates a positive outlook for IT budget growth through the end of the year and into 2025, suggesting a reduction in macroeconomic uncertainty and highlighting the importance of IT and AI within enterprises. On the contrary, Sprout Social saw a lower price target and estimates following the survey results.
Meanwhile, Scotiabank (TSX:BNS) initiated coverage on Sprout Social with a Sector Perform rating and a price target of $28.00. The rating reflects the company’s potential growth in the sector and its strategic initiatives to tap into a larger market by offering a more comprehensive suite of tools and services.
In addition, Sprout Social announced during its Q3 2024 earnings call that it had surpassed $100 million in quarterly revenue for the first time, reporting $102.6 million with a 20% year-over-year increase. The company also revealed a 31% year-over-year growth in Remaining Performance Obligations (RPO) to $220.7 million. Despite broader macroeconomic challenges, Sprout Social remains optimistic about its growth trajectory, emphasizing its focus on enterprise growth, product innovation, and strategic partnerships.
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