Sprout Social Inc (NASDAQ:SPT) CFO and Treasurer Preto Del sold 8,300 shares of the company on March 4, 2024, according to a recent SEC filing. The transaction was executed at an average price of $64.01 per share, resulting in a total sale amount of $531,283.
Sprout Social Inc is a provider of cloud-based social media management software that enables businesses to effectively engage with their audience across various social platforms. The company's solutions are designed to help organizations manage their social media strategies, including publishing and scheduling posts, analyzing social media performance, and communicating with customers.
Over the past year, Preto Del has sold a total of 30,076 shares of Sprout Social Inc and has not made any purchases of the stock. The insider's recent sale contributes to a broader pattern observed within the company, where there have been no insider buys and 44 insider sells over the past year.
On the valuation front, Sprout Social Inc's shares were trading at $64.01 on the day of the insider's sale, giving the company a market capitalization of $3.325 billion. The stock's price-to-GF-Value ratio stands at 0.69, with the GF Value estimated at $92.47 per share, indicating that Sprout Social Inc is significantly undervalued according to GuruFocus's intrinsic value estimate.
The GF Value is determined by considering historical trading multiples such as the price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow. Additionally, a GuruFocus adjustment factor is applied based on the company's historical returns and growth, along with future business performance estimates provided by Morningstar analysts.
The insider's recent transaction may provide investors with insight into how company executives view the stock's current valuation and future prospects. However, it is important for investors to consider a wide range of factors, including broader market conditions and individual investment strategies, when interpreting insider trading activity.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
