Stock Analysis

Have Insiders Sold Sprout Social, Inc. (NASDAQ:SPT) Shares Recently?

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Some Sprout Social, Inc. (NASDAQ:SPT) shareholders may be a little concerned to see that the Independent Director, Karen Walker, recently sold a substantial US$899k worth of stock at a price of US$64.19 per share. That's a big disposal, and it decreased their holding size by 24%, which is notable but not too bad.

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The Last 12 Months Of Insider Transactions At Sprout Social

In the last twelve months, the biggest single sale by an insider was when the Co-Founder, Justyn Howard, sold US$2.4m worth of shares at a price of US$74.20 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$60.04. So it may not shed much light on insider confidence at current levels.

Insiders in Sprout Social didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

NasdaqCM:SPT Insider Trading Volume March 17th 2023

I will like Sprout Social better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Sprout Social Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Sprout Social insiders own 7.7% of the company, currently worth about US$253m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Sprout Social Insiders?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Sprout Social.

But note: Sprout Social may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

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