Cantor Fitzgerald Issues Pessimistic Forecast for Spotify Technology (NYSE:SPOT) Stock Price

Key Points

• Cantor Fitzgerald lowered Spotify’s price target from $530 to $490 and maintained a “neutral” rating, implying 7.46% downside from the stock’s $529.52 opening price.
• Despite several recent target cuts, analysts remain broadly positive: Spotify has a “Moderate Buy” consensus rating and an average price target of $610.25.
• Spotify’s latest quarter modestly missed expectations, with EPS of $3.03 versus $3.16 expected and revenue of $5.45 billion versus $5.47 billion forecast, though revenue grew 13.9% year over year.

Spotify Technology (NYSE:SPOT - Get Free Report) had its target price reduced by equities research analysts at Cantor Fitzgerald from $530.00 to $490.00 in a research report issued to clients and investors on Monday, Benzinga reports. The brokerage currently has a "neutral" rating on the stock. Cantor Fitzgerald's price target suggests a potential downside of 7.46% from the company's current price.

Several other research firms also recently commented on SPOT. KeyCorp decreased their target price on shares of Spotify Technology from $680.00 to $660.00 and set an "overweight" rating for the company in a research report on Thursday, October 1st. UBS Group lowered their target price on shares of Spotify Technology from $690.00 to $675.00 and set a "buy" rating on the stock in a report on Monday, October 5th. Benchmark dropped their price target on shares of Spotify Technology from $695.00 to $650.00 and set a "buy" rating on the stock in a research report on Wednesday, July 22nd. Guggenheim reiterated a "buy" rating and set a $565.00 price target on shares of Spotify Technology in a research note on Wednesday, August 5th. Finally, Rosenblatt Securities cut their price target on Spotify Technology from $531.00 to $527.00 and set a "neutral" rating for the company in a research note on Wednesday, August 5th. One investment analyst has rated the stock with a Strong Buy rating, twenty-three have given a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $610.25.

Spotify Technology Trading Up 0.1%

NYSE SPOT opened at $529.52 on Monday. The company has a fifty day simple moving average of $517.62 and a 200 day simple moving average of $493.91. Spotify Technology has a 12-month low of $405.00 and a 12-month high of $700.12. The company has a market cap of $109.02 billion, a P/E ratio of 32.97, a PEG ratio of 1.62 and a beta of 1.61.

Spotify Technology (NYSE:SPOT - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The company reported $3.03 EPS 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 business 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 firm posted ($0.42) EPS. The business's revenue for the quarter was up 13.9% compared to the same quarter last year. Sell-side analysts predict that Spotify Technology will post 13.81 EPS for the current year.

Insiders Place Their Bets

In other Spotify Technology news, CEO Alex Norström sold 5,436 shares of Spotify Technology stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $502.10, for a total transaction of $2,729,415.60. Following the transaction, the chief executive officer directly owned 66,773 shares of the company's stock, valued at $33,526,723.30. The trade was a 7.53% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Gustav Söderström sold 20,913 shares of the company's stock in a transaction on Monday, September 14th. The stock was sold at an average price of $544.19, for a total transaction of $11,380,645.47. Following the completion of the sale, the chief executive officer owned 20,025 shares of the company's stock, valued at approximately $10,897,404.75. The trade was a 51.08% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 47,182 shares of company stock worth $24,677,392 over the last ninety days. Insiders own 0.40% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Pin Oak Investment Advisors Inc. bought a new position in Spotify Technology in the 2nd quarter valued at $27,000. Osbon Capital Management LLC purchased a new position in shares of Spotify Technology during the 4th quarter valued at $35,000. Portus Wealth Advisors LLC purchased a new position in shares of Spotify Technology during the 1st quarter valued at $32,000. Whipplewood Advisors LLC increased its holdings in shares of Spotify Technology by 423.1% in the first quarter. Whipplewood Advisors LLC now owns 68 shares of the company's stock worth $33,000 after purchasing an additional 55 shares during the period. Finally, Palladiem LLC bought a new position in shares of Spotify Technology in the first quarter worth $34,000. 84.09% of the stock is currently owned by hedge funds and other institutional investors.

Spotify Technology Company Profile

Spotify Technology SA is a global audio streaming company that operates the Spotify platform. The service provides users with access to a broad catalog of music, podcasts and audiobooks, along with personalized recommendations, playlists and other discovery features.

Spotify offers a subscription-based Premium service with enhanced listening features, as well as an ad-supported service available at no direct cost to users. The company generates revenue primarily through Premium subscriptions and advertising, including audio, video and display advertising delivered across its platform.

Founded in 2006 by Daniel Ek and Martin Lorentzon, Spotify is headquartered in Stockholm, Sweden, and serves listeners, creators, advertisers and other partners across markets worldwide.

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