Howard Justyn Russell, Executive Chair of Sprout Social, Inc. (NASDAQ:SPT), has sold 40,000 shares of the company's Class A common stock. The shares were sold at an average price of $31.67 per share, amounting to a total transaction value of approximately $1.27 million. The social media management platform company, currently valued at $1.85 billion, has shown strong revenue growth of 26.7% over the last twelve months, according to InvestingPro data.
Following this sale, Russell retains ownership of 27,136 shares of Class A common stock. The transactions occurred under a pre-established 10b5-1 trading plan, which was adopted on September 10, 2024. While analysts maintain price targets ranging from $23 to $55, InvestingPro analysis suggests the stock may be undervalued at current levels. Subscribers can access 6 additional ProTips and a comprehensive Pro Research Report for deeper insights.
Additionally, the filing disclosed that Russell converted 20,000 shares of Class B common stock into Class A common stock. These transactions reflect Russell's ongoing management of his equity holdings in the company.
In other recent news, Sprout Social Inc (NASDAQ:SPT). has achieved a significant financial milestone, surpassing $100 million in Q3 revenue for the first time. The company reported a 20% year-over-year increase, reaching $102.6 million. Additionally, the company's Remaining Performance Obligations (RPO) grew 31% year-over-year, totaling $220.7 million. Looking ahead, Sprout Social projects its Q4 2024 revenue to be between $106.3 million and $107.1 million.
Meanwhile, Oppenheimer's tenth annual fourth-quarter IT spending strength survey indicates a constructive outlook for IT budget growth. The survey, which interviewed 301 buyers, points to a more normalized spending environment. The findings led to Agilysys (NASDAQ:AGYS), Inc. and ServiceNow (NYSE:NOW), Inc. having their price targets raised by Oppenheimer, reflecting a favorable outlook for these companies.
Scotiabank (TSX:BNS) has 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. These are among the recent developments in the IT sector.
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