Analysts Set Spotify Technology (NYSE:SPOT) PT at $609.05

Spotify Technology (NYSE:SPOT) has earned an average recommendation of “Moderate Buy” from the twenty-five research firms that are covering the stock, MarketBeat Ratings reports. Six research analysts have rated the stock with a hold rating, seventeen have issued a buy rating and two have assigned a strong buy rating to the company. The average 12 month price objective among analysts that have covered the stock in the last year is $609.0476.

A number of equities analysts recently issued reports on the stock. Wells Fargo & Company dropped their price objective on shares of Spotify Technology from $600.00 to $570.00 and set an “overweight” rating on the stock in a report on Thursday, July 9th. UBS Group reduced their target price on shares of Spotify Technology from $735.00 to $690.00 and set a “buy” rating for the company in a report on Friday, July 10th. Citizens Jmp increased their price target on shares of Spotify Technology from $600.00 to $625.00 and gave the stock a “market outperform” rating in a research report on Friday, May 22nd. KeyCorp dropped their price target on shares of Spotify Technology from $745.00 to $680.00 and set an “overweight” rating on the stock in a research note on Wednesday, April 29th. Finally, Pivotal Research cut their price objective on shares of Spotify Technology from $420.00 to $400.00 and set a “hold” rating for the company in a research report on Wednesday, April 29th.

Spotify Technology Stock Down 0.1%

SPOT opened at $532.94 on Tuesday. The firm has a 50 day moving average price of $485.18 and a 200-day moving average price of $485.17. Spotify Technology has a twelve month low of $405.00 and a twelve month high of $745.00. The stock has a market capitalization of $109.72 billion, a price-to-earnings ratio of 33.18, a PEG ratio of 1.31 and a beta of 1.58.

Spotify Technology (NYSE:SPOT) last issued its quarterly earnings data on Tuesday, August 4th. The company reported $3.03 earnings per share for the quarter, missing analysts’ consensus estimates of $3.16 by ($0.13). Spotify Technology had a net margin of 18.44% and a return on equity of 41.39%. The company had revenue of $5.45 billion for the quarter, compared to the consensus estimate of $5.47 billion. During the same quarter last year, the company earned ($0.42) EPS. The firm’s revenue for the quarter was up 13.9% on a year-over-year basis. As a group, analysts expect that Spotify Technology will post 14.3 earnings per share for the current year.

Key Spotify Technology News

Here are the key news stories impacting Spotify Technology this week:

• Positive Sentiment: Expanded buyback supports the shares: Spotify’s board approved an additional $1.5 billion for its repurchase program. Including approximately $723 million remaining under the existing authorization, total available buybacks now stand at roughly $2.223 billion. Repurchases can support earnings per share and signal management’s confidence in the company’s cash-generation outlook. Spotify Upsizes Share Repurchase Program by $1.5 Billion
• Positive Sentiment: Growth and profitability continue to support the bull case: Recent analysis highlights Spotify’s subscriber growth, pricing gains, expanding monetization, record margins and improving cash flow. The shares have gained about 12.5% over the past month, while technical analysts have identified further bullish momentum. SPOT Gains 12.5% in a Month as Growth Strength Meets Valuation Risk
• Neutral Sentiment: New playlist feature adds user engagement potential: Spotify now allows users to add explanations or stories to playlists. The feature may improve personalization and engagement, but its direct impact on revenue is not yet clear. Spotify Now Allows Users to Add a Story Behind Their Playlists
• Negative Sentiment: Valuation leaves little room for disappointment: Analysts note that Spotify’s premium valuation raises the bar for continued subscriber growth, margin expansion and monetization. Reinvestment needs and potential execution issues could limit upside despite the company’s strong operating trends. Is Spotify Stock Worth Buying as Growth Meets a Premium Valuation?

Insider Buying and Selling

In related news, Director Thomas O. Staggs sold 5,477 shares of Spotify Technology stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $526.00, for a total transaction of $2,880,902.00. Following the transaction, the director directly owned 3,619 shares in the company, valued at approximately $1,903,594. The trade was a 60.21% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Christopher P. Marshall sold 2,650 shares of the business’s stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $519.86, for a total value of $1,377,629.00. Following the sale, the director directly owned 4,039 shares of the company’s stock, valued at $2,099,714.54. This represents a 39.62% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 81,498 shares of company stock valued at $40,480,782 over the last three months. 0.40% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Spotify Technology

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Independence Bank of Kentucky raised its stake in Spotify Technology by 805.9% during the 2nd quarter. Independence Bank of Kentucky now owns 4,303 shares of the company’s stock worth $1,976,000 after acquiring an additional 3,828 shares during the period. Proficio Capital Partners LLC purchased a new stake in shares of Spotify Technology in the second quarter worth $357,000. Rehmann Capital Advisory Group increased its stake in shares of Spotify Technology by 98.8% in the second quarter. Rehmann Capital Advisory Group now owns 962 shares of the company’s stock worth $442,000 after purchasing an additional 478 shares in the last quarter. Montanova Capital LLC raised its position in shares of Spotify Technology by 9,154.5% during the 2nd quarter. Montanova Capital LLC now owns 101,800 shares of the company’s stock valued at $46,739,000 after purchasing an additional 100,700 shares during the period. Finally, BTG Pactual Asset Management US LLC raised its position in shares of Spotify Technology by 78.9% during the 2nd quarter. BTG Pactual Asset Management US LLC now owns 5,069 shares of the company’s stock valued at $2,327,000 after purchasing an additional 2,236 shares during the period. 84.09% of the stock is owned by hedge funds and other institutional investors.

Spotify Technology Company Profile

Spotify Technology is a digital audio streaming company best known for its on-demand music service and a growing portfolio of spoken-word content. Founded in Sweden in 2006 by Daniel Ek and Martin Lorentzon and launched commercially in 2008, the company offers a cross-platform app that enables users to discover, stream and organize music, podcasts and other audio. Its primary consumer products include a free, ad-supported tier and a paid Spotify Premium subscription that provides ad-free listening, offline playback and higher-quality audio streams.