Should I Buy SPT? SPT 2026 Analysis

Should You Buy Sprout Social Inc (SPT) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

8.050

1 Day change

0.50%

52 Week Range

33.970

Analysis Updated At

2026/01/30

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SPT is not a good buy right now for an impatient investor. The stock is in a clear downtrend (SMA200 > SMA20 > SMA5) and only shows early signs of a potential oversold bounce (RSI6 ~32, MACD still below zero). With no Intellectia buy signals today and insider selling accelerating, the risk/reward is not attractive for an immediate entry. A better tactical “buy-now” case would require reclaiming the 9.35 pivot and then pushing through 9.91 resistance; until then, this is a hold/avoid rather than a buy.

Technical Analysis

Trend/structure: Bearish primary trend with stacked bearish moving averages (SMA200 > SMA20 > SMA5), indicating sellers have controlled the tape. Momentum: MACD histogram at -0.103 (below 0) but negatively contracting, suggesting downside momentum is fading rather than reversing. RSI: RSI6 at 32.62 is near oversold territory, consistent with a possible short-term bounce setup but not a confirmed reversal. Key levels: Pivot 9.345 (must reclaim to improve near-term bias). Support S1 8.78 then S2 8.43 (breaks would likely resume the downtrend). Resistance R1 9.91 then R2 10.26 (levels needed to clear to shift the trend from “bear rally” to “trend change”). Intellectia Proprietary Trading Signals - [AI Stock Picker](module://ai_stock_pick): No signal on given stock today. - [SwingMax](module://swingmax): No signal on given stock today.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Positioning/sentiment: Open interest put-call ratio of 0.11 is extremely call-skewed (bullish positioning/hedging demand tilted toward calls). Volume put-call ratio of 0.47 also favors calls.

Volatility: 30D IV ~75.75 vs historical vol ~54.56 implies options are pricing elevated uncertainty (expensive premium); IV percentile 66.4 suggests IV is relatively high versus its own history.

Flow intensity: Today’s volume vs 30D avg is ~34.33 (unusually light), so the call-skew is more about outstanding positioning than aggressive fresh buying today.

Net take: Options lean bullish, but elevated IV and light activity reduce confidence that options are signaling an immediate breakout.

Technical Summary

Sell

Buy

Positive Catalysts

Oversold/mean-reversion potential: RSI near oversold and MACD downside momentum fading can support a short-term bounce.
Options market skew: Very low OI put-call ratio (0.
indicates call-heavy positioning.
Revenue still growing: 2025/Q3 revenue +12.62% YoY with strong gross margin (~77.69%).
Event catalyst ahead: Next earnings (QDEC
on 2026-02-26 after hours could reset expectations if forward metrics stabilize.

Neutral/Negative Catalysts

Strong downtrend remains intact: Bearish moving-average stack suggests rallies may be sold until key resistances are reclaimed.
Insider behavior: Insiders are selling, and selling increased 128.49% over the last month (negative signal).
Profitability deterioration: 2025/Q3 net loss widened (net income -45.10% YoY; EPS -46.67% YoY).
Wall Street caution: Multiple firms cut price targets sharply after Q3, emphasizing uncertainty and needing proof that growth slowdown is contained.
No supportive news flow: No positive near-term catalysts from headlines in the past week.

Financial Performance

Latest quarter: 2025/Q3. Growth: Revenue rose to $115.593M (+12.62% YoY), showing the business is still expanding. Profitability: Net income fell to -$9.381M (loss widened, -45.10% YoY) and EPS declined to -0.16 (-46.67% YoY), signaling worsening bottom-line performance despite growth. Margins: Gross margin improved slightly to 77.69% (+0.41% YoY), indicating pricing/hosting efficiency remains strong, but operating costs are still pressuring earnings. Overall: Top-line growth is positive, but the trend in losses is a near-term headwind and helps explain cautious sentiment.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Recent trend: Clear wave of price-target cuts after Q3 (Morgan Stanley $17→$14 Equal Weight; Canaccord $25→$16 Buy; Baird $23→$15 Neutral; Goldman $21→$13 Neutral; Stifel $24→$20 Buy). Ratings are mixed (some Buys remain, but several Neutrals/Equal Weight), with the dominant message being ‘prove the slowdown is contained,’ especially around forward-looking indicators (e.g., RPO/cRPO commentary from Goldman). Wall Street pros: upside to targets is large versus the current ~$9.05, and some see upmarket/enterprise momentum plus upcoming product/LLM releases as tailwinds. Wall Street cons: uncertainty around long-term growth durability and a need for a pivotal Q4/2026 setup; repeated target cuts indicate confidence was reduced.

9 Analyst Rating

Wall Street analysts forecast SPT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SPT is 18.25 USD with a low forecast of 13 USD and a high forecast of 32 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

5 Buy

4 Hold

0 Sell

Moderate Buy

Current: 8.010

Low

Averages

18.25

High

Current: 8.010

Low

Averages

18.25

High

Morgan Stanley

Equal Weight

downgrade

$17 -> $14

AI Analysis

2025-11-13

Reason

Morgan Stanley

Price Target

$17 -> $14

AI Analysis

2025-11-13

downgrade

Equal Weight

Reason

Morgan Stanley lowered the firm's price target on Sprout Social to $14 from $17 and keeps an Equal Weight rating on the shares. The firm revised its estimates and price targets following calendar Q3 results last week for Sprout and several other software names it covers.

Canaccord

Buy

downgrade

$25 -> $16

2025-11-07

Reason

Canaccord

Price Target

$25 -> $16

2025-11-07

downgrade

Buy

Reason

Canaccord lowered the firm's price target on Sprout Social to $16 from $25 and keeps a Buy rating on the shares. The firm updated its model following Q3 results and said there is a lot riding on Q4 and this will be a pivotal quarter that sets the foundation for 2026 growth. Half the business seems to be doing well (enterprise), and half the business doesn't (SMB & Agency).

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SPT Should I Buy

SPT Should I Buy

Should You Buy Sprout Social Inc (SPT) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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