Spotify Technology (NYSE:SPOT) Earns “Hold” Rating from TD Cowen

Spotify Technology (NYSE:SPOT)‘s stock had its “hold” rating restated by research analysts at TD Cowen in a report issued on Friday, Benzinga reports. They presently have a $525.00 price target on the stock. TD Cowen‘s price objective points to a potential downside of 9.76% from the stock’s current price.

Other analysts have also issued research reports about the company. Phillip Securities upgraded Spotify Technology to a “buy” rating and set a $650.00 price objective on the stock in a research note on Tuesday, August 11th. Morgan Stanley raised their target price on Spotify Technology from $610.00 to $640.00 and gave the company an “overweight” rating in a report on Monday, August 3rd. Guggenheim raised their target price on Spotify Technology from $575.00 to $650.00 and gave the company a “buy” rating in a report on Friday. Citizens Jmp reiterated a “market outperform” rating and issued a $625.00 price target on shares of Spotify Technology in a research note on Friday. Finally, Wells Fargo & Company lowered their target price on Spotify Technology from $600.00 to $570.00 and set an “overweight” rating for the company in a research report on Thursday, July 9th. One analyst has rated the stock with a Strong Buy rating, twenty-three have assigned a Buy rating and nine have given a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $620.07.

Spotify Technology Stock Performance

SPOT traded down $1.91 on Friday, hitting $581.76. 1,116,204 shares of the company were exchanged, compared to its average volume of 2,198,308. Spotify Technology has a 12 month low of $405.00 and a 12 month high of $676.67. The company has a market cap of $119.77 billion, a PE ratio of 36.17, a PEG ratio of 1.63 and a beta of 1.61. The stock’s fifty day moving average is $525.20 and its 200-day moving average is $497.27.

Spotify Technology (NYSE:SPOT) last released its earnings results on Tuesday, August 4th. The company reported $3.03 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.16 by ($0.13). The company had revenue of $5.45 billion for the quarter, compared to the consensus estimate of $5.47 billion. Spotify Technology had a return on equity of 41.39% and a net margin of 18.44%. The business’s revenue was up 13.9% on a year-over-year basis. During the same quarter in the previous year, the company posted ($0.42) EPS. As a group, equities research analysts expect that Spotify Technology will post 13.66 EPS for the current fiscal year.

Insider Activity

In other news, CEO Gustav Söderström sold 20,910 shares of the company’s stock in a transaction on Monday, October 12th. The shares were sold at an average price of $530.13, for a total value of $11,085,018.30. Following the completion of the sale, the chief executive officer owned 19,908 shares in the company, valued at $10,553,828.04. This represents a 51.23% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Alex Norström sold 5,436 shares of the business’s stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $502.10, for a total value of $2,729,415.60. Following the completion of the transaction, the chief executive officer owned 66,773 shares in the company, valued at $33,526,723.30. The trade was a 7.53% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 68,092 shares of company stock valued at $35,762,410. 0.40% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Spotify Technology

Hedge funds and other institutional investors have recently modified their holdings of the business. Gibbs Wealth Management raised its holdings in shares of Spotify Technology by 42.9% in the 3rd quarter. Gibbs Wealth Management now owns 892 shares of the company’s stock worth $435,000 after purchasing an additional 268 shares during the period. Wedbush Securities Inc. increased its holdings in shares of Spotify Technology by 17.5% in the third quarter. Wedbush Securities Inc. now owns 1,993 shares of the company’s stock worth $971,000 after purchasing an additional 297 shares during the period. Atala Financial Inc increased its holdings in shares of Spotify Technology by 70.4% in the third quarter. Atala Financial Inc now owns 1,208 shares of the company’s stock worth $589,000 after purchasing an additional 499 shares during the period. Sterling Capital Management LLC increased its holdings in shares of Spotify Technology by 28.1% in the third quarter. Sterling Capital Management LLC now owns 5,312 shares of the company’s stock worth $2,589,000 after purchasing an additional 1,164 shares during the period. Finally, Washington Trust Advisors Inc. bought a new position in shares of Spotify Technology in the third quarter worth $62,000. Hedge funds and other institutional investors own 84.09% of the company’s stock.

More Spotify Technology News

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

• Positive Sentiment: Spotify reported 306 million premium subscribers, up 9% year over year and one million above guidance. Monthly active users rose 11% to 788 million, with growth across all regions. Spotify Stock Surges on Q3 Subscriber Beat And Bullish Forecast
• Positive Sentiment: Revenue increased approximately 16% year over year to €4.97 billion, while gross margin expanded to 33% and operating income exceeded company guidance. Spotify expects further margin improvement as expense growth moderates. Spotify revenue rises 16% as subscribers and margins improve
• Positive Sentiment: Management highlighted advertising recovery, AI-powered personalization through its “taste model,” audiobooks and AI-agent integrations as potential growth drivers. The company said AI is helping accelerate product launches without increasing headcount significantly. Spotify Q3 Earnings Call Highlights Ad Recovery and Cost Control
• Positive Sentiment: Several analysts raised their price targets following the results, including Wells Fargo to $660, Barclays and Guggenheim to $650, and Citizens JMP to $625, generally maintaining bullish ratings. Spotify Analysts Raise Their Forecasts Following Q3 Earnings
• Neutral Sentiment: Spotify guided to roughly $6.0 billion of fourth-quarter revenue, broadly matching consensus. It also expects approximately 818 million MAUs and 316 million premium subscribers, implying continued growth.
• Negative Sentiment: Quarterly EPS missed analyst expectations, and revenue was slightly below estimates. The earnings shortfall contrasts with the strong subscriber performance and could limit near-term upside. Spotify Q3 Earnings Miss Estimates
• Negative Sentiment: Not all analysts turned bullish: TD Cowen reaffirmed a Hold rating with a $525 target, while Cantor Fitzgerald maintained Neutral with a $550 target, both below the prevailing share price. TD Cowen Spotify Rating

Spotify Technology Company Profile

Spotify Technology SA is an audio streaming company that operates the Spotify platform, offering users access to music, podcasts and audiobooks through internet-connected devices. Its catalog includes licensed recordings from music labels and artists, as well as podcasts and other audio content from creators and publishers.

Spotify provides both an ad-supported service and subscription-based Premium plans. Premium subscribers generally receive ad-free listening and additional features, while the advertising-supported service allows users to access content without a paid subscription.