Driehaus Capital Management Invests in Sprout Social: A Promising Move for the Social Media Management Industry?

Driehaus Capital Management LLC, a prestigious funding administration agency headquartered in Chicago, IL, has made waves in the monetary business with its newest buy. According to the firm’s most up-to-date Form 13F submitting with the Securities and Exchange Commission (SEC), Driehaus Capital bought over 221,000 shares of Sprout Social, Inc. (NASDAQ:SPT) for an estimated worth of $12.5 million.
Sprout Social is a number one supplier of cloud-based software program that permits companies to simply handle their social media messaging and knowledge workflows throughout a number of platforms. The software program streamlines communications and helps customers higher perceive how their viewers is partaking with them on varied platforms, making it an more and more standard instrument amongst companies of all sizes.
Despite its modern expertise and rising consumer base, SPT has struggled in current months to take care of its worth in the inventory market. Several reviews from monetary analysts have precipitated concern amongst buyers, together with information that Cantor Fitzgerald had lower Sprout Social’s value goal from $52.00 to $46.00.
However, some analysts have remained bullish about Sprout Social’s future prospects regardless of these setbacks. Canaccord Genuity Group not too long ago gave SPT a “purchase” score and raised its value goal to $70.00 per share on account of sturdy consumer progress and rising demand for social media advertising and marketing instruments amongst companies.
Based on knowledge from Bloomberg.com, Sprout Social at present holds a consensus score of “Moderate Buy” and boasts a mean goal value of $64.36 per share.
Driehaus Capital Management LLC’s choice to take a position in SPT is seen by many as an encouraging signal for each the firm and the wider social media administration business. With demand for social media advertising and marketing options persevering with to rise amongst companies worldwide, it’s probably that extra buyers will take discover of modern corporations like Sprout Social in the years to return.

Sprout Social, Inc.
SPT
Buy

Updated on: 12/06/2023

Price Target

Current $49.10

Concensus $87.33

Low $63.00

Median $77.50

High $150.00

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Social Sentiments
We didn’t discover social sentiment knowledge for this inventory

Analyst Ratings

Analyst / agency
Rating

Morgan Stanley

Buy

Rob OliverRobert W. Baird

Buy

Clarke JeffriesPiper Sandler

Buy

Elizabeth PorterMorgan Stanley

Buy

Cantor Fitzgerald

Buy

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Institutional Investors Show Interest in Social Media Management Platform Sprout Social

Sprout Social, a number one software-as-a-service platform offering social media administration instruments, has seen important exercise from hedge funds and different institutional buyers in current months. This information comes amidst a flurry of exercise surrounding the firm, together with the sale of shares by President Ryan Paul Barretto and CTO Aaron Edward Frederick Rankin.
Bank of New York Mellon Corp noticed a 3.3% improve in its stake of Sprout Social throughout the first quarter, rising its holdings to over $34 million price of inventory. Meanwhile, Raymond James & Associates boosted its holdings by practically 6%, bringing its whole possession to over $2 million price of inventory. PNC Financial Services Group Inc additionally grew its place by over 100%, boosting its holdings to over $200,000 price of inventory.
MetLife Investment Management LLC elevated its stake by 56.3% throughout the similar interval, whereas Rhumbline Advisers noticed a extra modest improve of two.8%. Hedge funds and different institutional buyers now personal over 86% of Sprout Social’s whole excellent shares.
The firm’s inventory at present trades at round $47.56 per share, with a 50-day transferring common of $47.46 and a 200-day transferring common of $55.79. The firm has seen sharp fluctuations in buying and selling quantity not too long ago as buyers reply to industrial, technological, and market developments inside the business.
Despite these fluctuations, Sprout Social stays a sexy proposition for many business gamers in search of strategic positions in this dynamic area. As such, it’s probably that we’ll see continued curiosity from hedge funds and institutional buyers in this modern supplier of social media administration instruments going ahead.

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