Spotify Technology (NYSE:SPOT) Shares Down 5.9% – Should You Sell?

Spotify Technology S.A. (NYSE:SPOT)’s stock price traded down 5.9% during mid-day trading on Monday . The company traded as low as $602.00 and last traded at $609.81. 1,091,704 shares changed hands during trading, a decline of 56% from the average session volume of 2,484,798 shares. The stock had previously closed at $648.25.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on the company. KeyCorp cut their price objective on Spotify Technology from $675.00 to $625.00 and set an “overweight” rating for the company in a research report on Wednesday, April 9th. Cantor Fitzgerald dropped their target price on Spotify Technology from $600.00 to $520.00 and set a “neutral” rating for the company in a research report on Wednesday, April 16th. Loop Capital lifted their target price on Spotify Technology from $435.00 to $550.00 and gave the company a “hold” rating in a research report on Friday, May 2nd. Wells Fargo & Company upped their target price on shares of Spotify Technology from $690.00 to $740.00 and gave the stock an “overweight” rating in a research note on Friday, March 28th. Finally, Benchmark increased their price objective on Spotify Technology from $600.00 to $720.00 and gave the company a “buy” rating in a research note on Wednesday, February 5th. Eight analysts have rated the stock with a hold rating and twenty have issued a buy rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $606.48.

Spotify Technology Price Performance

The company has a market cap of $127.41 billion, a price-to-earnings ratio of 104.60 and a beta of 1.72. The firm’s 50 day simple moving average is $575.47 and its 200-day simple moving average is $525.93.

Spotify Technology (NYSE:SPOT) last released its quarterly earnings data on Tuesday, April 29th. The company reported $1.13 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.29 by ($1.16). Spotify Technology had a net margin of 7.26% and a return on equity of 25.56%. The company had revenue of $4.41 billion during the quarter, compared to analyst estimates of $4.22 billion. During the same quarter in the prior year, the company earned $0.97 EPS. The business’s revenue was up 15.2% on a year-over-year basis. On average, analysts forecast that Spotify Technology S.A. will post 10.3 EPS for the current year.

Institutional Investors Weigh In On Spotify Technology

Several hedge funds have recently made changes to their positions in SPOT. Jennison Associates LLC increased its stake in Spotify Technology by 42.3% in the 1st quarter. Jennison Associates LLC now owns 4,247,940 shares of the company’s stock valued at $2,336,494,000 after buying an additional 1,262,614 shares during the period. Massachusetts Financial Services Co. MA boosted its holdings in shares of Spotify Technology by 3.3% in the first quarter. Massachusetts Financial Services Co. MA now owns 3,526,988 shares of the company’s stock valued at $1,939,949,000 after acquiring an additional 112,553 shares in the last quarter. FMR LLC increased its stake in shares of Spotify Technology by 30.2% during the fourth quarter. FMR LLC now owns 2,041,387 shares of the company’s stock worth $913,276,000 after acquiring an additional 473,569 shares during the period. Schroder Investment Management Group increased its stake in shares of Spotify Technology by 0.4% during the fourth quarter. Schroder Investment Management Group now owns 1,912,937 shares of the company’s stock worth $855,810,000 after acquiring an additional 7,075 shares during the period. Finally, GQG Partners LLC purchased a new position in Spotify Technology during the fourth quarter worth about $800,725,000. Institutional investors and hedge funds own 84.09% of the company’s stock.

About Spotify Technology

Spotify Technology SA, together with its subsidiaries, provides audio streaming subscription services worldwide. It operates through two segments, Premium and Ad-Supported. The Premium segment offers unlimited online and offline streaming access to its catalog of music and podcasts without commercial breaks to its subscribers.