Spotify Technology (NYSE:SPOT) Earns "Neutral" Rating from Rosenblatt Securities

Key Points

• Rosenblatt Securities reiterated a Neutral rating on Spotify with a $527 price target, implying virtually no upside from the cited share price. The broader analyst consensus remains “Moderate Buy,” with an average target of $610.25.
• Spotify shares rose 1.5% to $526.72, while the company’s latest quarterly results fell slightly short of expectations: adjusted earnings were $3.03 per share versus a $3.16 consensus, and revenue reached $5.45 billion.
• Insiders sold $35.8 million of stock during the last quarter, including CEO Gustav Söderström’s $11.1 million sale to cover tax obligations. Institutional investors own approximately 84.1% of Spotify’s shares.

Spotify Technology (NYSE:SPOT - Get Free Report)'s stock had its "neutral" rating reiterated by research analysts at Rosenblatt Securities in a research note issued to investors on Tuesday, Benzinga reports. They presently have a $527.00 price target on the stock. Rosenblatt Securities's target price would suggest a potential upside of 0.05% from the company's current price.

Several other equities research analysts also recently commented on SPOT. Piper Sandler began coverage on Spotify Technology in a report on Thursday, October 8th. They issued a "neutral" rating and a $540.00 target price on the stock. Stonex Financia downgraded Spotify Technology from a "strong-buy" rating to a "hold" rating in a report on Wednesday, October 14th. Phillip Securities raised Spotify Technology to a "buy" rating and set a $650.00 target price on the stock in a report on Tuesday, August 11th. UBS Group dropped their target price on Spotify Technology from $690.00 to $675.00 and set a "buy" rating on the stock in a report on Monday, October 5th. Finally, Morgan Stanley increased their price target on shares of Spotify Technology from $610.00 to $640.00 and gave the company an "overweight" rating in a report on Monday, August 3rd. One research analyst has rated the stock with a Strong Buy rating, twenty-three have given a Buy rating and eight have assigned a Hold rating to the company. According to MarketBeat.com, Spotify Technology currently has an average rating of "Moderate Buy" and an average target price of $610.25.

Spotify Technology Stock Up 1.5%

Shares of NYSE SPOT traded up $7.96 on Tuesday, reaching $526.72. 1,723,278 shares of the company's stock traded hands, compared to its average volume of 2,191,980. Spotify Technology has a 12 month low of $405.00 and a 12 month high of $696.95. The business's 50 day simple moving average is $522.79 and its two-hundred day simple moving average is $496.36. The company has a market cap of $108.44 billion, a price-to-earnings ratio of 32.80, a price-to-earnings-growth ratio of 1.63 and a beta of 1.61.

Spotify Technology (NYSE:SPOT - Get Free Report) last announced its earnings results 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 business had revenue of $5.45 billion for the quarter, compared to the consensus estimate of $5.47 billion. During the same period in the prior year, the business posted ($0.42) EPS. Spotify Technology's revenue for the quarter was up 13.9% on a year-over-year basis. Analysts forecast that Spotify Technology will post 13.77 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CEO Gustav Söderström sold 20,910 shares of the stock in a transaction that occurred on Monday, October 12th. The shares were sold at an average price of $530.13, for a total transaction of $11,085,018.30. Following the transaction, 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 ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 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 stock in a transaction that occurred 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 owned 66,773 shares in the company, valued at approximately $33,526,723.30. This trade represents a 7.53% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders have sold 68,092 shares of company stock worth $35,762,410. Corporate insiders own 0.40% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Montanova Capital LLC raised its position in Spotify Technology by 9,154.5% in the second quarter. Montanova Capital LLC now owns 101,800 shares of the company's stock worth $46,739,000 after acquiring an additional 100,700 shares during the period. Plato Investment Management Ltd bought a new position in Spotify Technology in the second quarter worth approximately $1,363,000. HS Management Partners LLC bought a new position in Spotify Technology in the second quarter worth approximately $13,404,000. Ally Financial Inc. raised its position in Spotify Technology by 100.0% in the second quarter. Ally Financial Inc. now owns 7,000 shares of the company's stock worth $3,214,000 after acquiring an additional 3,500 shares during the period. Finally, Manning & Napier Advisors LLC bought a new position in Spotify Technology in the second quarter worth approximately $100,867,000. Institutional investors own 84.09% of the company's stock.

Spotify Technology News Roundup

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

• Positive Sentiment: Jefferies raised its price target to $620 from $600 and reiterated a Buy rating ahead of Spotify’s third-quarter results. The firm cited muted expectations, moderating cost pressures, potential advertising improvement, and possible AI products as catalysts. Jefferies also views Spotify’s platform as highly defensible against AI competition. Spotify Q3 preview: Jefferies sees favorable set-up as AI products and ad growth offer upside
• Positive Sentiment: Premium revenue reportedly grew 15%, supported by subscriber gains and pricing increases. Stronger subscription monetization could help offset continuing pressure in Spotify’s advertising business. Spotify’s Premium Growth Gains Traction
• Positive Sentiment: Spotify launched paid podcast memberships, allowing creators to offer perks such as ad-free listening, early access, and exclusive audio or video while retaining 90% of revenue. The initiative could increase creator retention and add a higher-margin monetization channel. Spotify launches paid podcast memberships with perks beyond bonus content
• Positive Sentiment: Spotify said it removed more than 50 million AI-generated “slop” and spam tracks from recommendations this year. The cleanup may improve user trust, discovery quality, and the platform’s defenses against low-quality AI content, although it also highlights a growing content-management challenge. Spotify has pulled more than 50m AI slop and spam tracks out of its recommendations this year
• Neutral Sentiment: Rosenblatt reaffirmed a Neutral rating with a $527 price target, indicating limited near-term upside at the cited price. Investors are also awaiting third-quarter metrics, including monthly active users, Premium subscribers, and revenue.
• Negative Sentiment: Advertising remains a pressure point, while Spotify’s multiyear Joe Rogan renewal increases content commitments. Although the company expanded its buyback authorization by approximately $1.5 billion to about $2.22 billion, investors must weigh capital returns against higher content spending. StoneX also downgraded the shares from Buy to Hold.

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.