Joseph Del Preto, the Chief Financial Officer and Treasurer of Sprout Social, Inc. (NASDAQ:SPT), a $1.84 billion market cap company showing impressive 26.7% revenue growth and industry-leading gross margins of 77.3%, recently sold a portion of his holdings in the company. According to a recent SEC filing, Del Preto sold 1,500 shares of Sprout Social's Class A common stock on December 4, 2024, at a price of $31.30 per share. This transaction totaled $46,950. InvestingPro analysis suggests the stock is currently trading below its Fair Value.
Following this sale, Del Preto retains ownership of 153,073 shares, which includes a number of restricted stock units (RSUs) set to vest in future periods. This transaction was executed under a pre-established 10b5-1 trading plan, which Del Preto adopted on August 20, 2024. While the company isn't currently profitable, InvestingPro data shows analysts expect profitability this year, with 8 additional exclusive insights available for subscribers.
In other recent news, Sprout Social Inc (NASDAQ:SPT). has seen significant financial growth, surpassing $100 million in Q3 revenue for the first time. The company reported a year-over-year increase of 20%, with revenue reaching $102.6 million. Sprout Social's Remaining Performance Obligations (RPO) also saw a 31% growth year-over-year, amounting to $220.7 million. Looking forward, the company anticipates recognizing 71% of its RPO as revenue in the next 12 months.
In a recent survey conducted by Oppenheimer, it was revealed that IT spending is expected to normalize, leading to raised targets for several companies, including Agilysys (NASDAQ:AGYS), Inc. and ServiceNow (NYSE:NOW), Inc. The survey findings also suggested that IT budgets are likely to be deployed promptly, with little room for deferral into 2025. However, not all IT firms are expected to benefit equally from these spending trends.
On the other hand, Scotiabank (TSX:BNS) initiated coverage on Sprout Social with a Sector Perform rating and set a price target of $28.00. This rating suggests that the company's stock is expected to perform in line with the expectations for the overall sector in the coming year. Despite restructuring in the R&D department, which may result in the elimination of approximately 50 roles, Sprout Social maintains its optimism about its growth trajectory.
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