Spotify Technology (NYSE:SPOT) Cut to "Moderate Buy" at Phillip Securities

Key Points

• Phillip Securities downgraded Spotify from “strong buy” to “moderate buy,” although the broader analyst consensus remains “moderate buy” with an average price target of $620.07.
• Spotify shares opened at $572.69, with a market capitalization of approximately $117.91 billion and a 52-week range of $405.00 to $673.16. Several firms recently raised their price targets, including Wells Fargo, Oppenheimer and Guggenheim.
• In its latest quarter, Spotify reported revenue of $5.63 billion and EPS of $2.81, narrowly missing analyst estimates, while revenue still increased 16.3% year over year. The company posted a 15.74% net margin and 35.64% return on equity.

Spotify Technology (NYSE:SPOT - Get Free Report) was downgraded by stock analysts at Phillip Securities from a "strong-buy" rating to a "moderate buy" rating in a report released on Monday, Zacks reports.

A number of other equities research analysts have also issued reports on SPOT. Piper Sandler reissued a "neutral" rating and set a $580.00 target price (up from $540.00) on shares of Spotify Technology in a research note on Friday. UBS Group dropped their price target on shares of Spotify Technology from $690.00 to $675.00 and set a "buy" rating on the stock in a research note on Monday, October 5th. Wells Fargo & Company increased their price objective on Spotify Technology from $570.00 to $660.00 and gave the stock an "overweight" rating in a report on Friday. Oppenheimer increased their price objective on Spotify Technology from $550.00 to $650.00 and gave the stock an "outperform" rating in a report on Friday. Finally, Guggenheim lifted their price objective on Spotify Technology from $575.00 to $650.00 and gave the company a "buy" rating in a research report on Friday. One investment analyst has rated the stock with a Strong Buy rating, twenty-three have assigned a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, Spotify Technology currently has a consensus rating of "Moderate Buy" and a consensus target price of $620.07.

Spotify Technology Price Performance

NYSE SPOT opened at $572.69 on Monday. The company has a 50 day simple moving average of $526.03 and a 200-day simple moving average of $497.95. The firm has a market capitalization of $117.91 billion, a price-to-earnings ratio of 37.97, a price-to-earnings-growth ratio of 1.81 and a beta of 1.61. Spotify Technology has a 52-week low of $405.00 and a 52-week high of $673.16.

Spotify Technology (NYSE:SPOT - Get Free Report) last announced its quarterly earnings data on Thursday, October 22nd. The company reported $2.81 EPS for the quarter, missing analysts' consensus estimates of $3.18 by ($0.37). The company had revenue of $5.63 billion for the quarter, compared to analysts' expectations of $5.64 billion. Spotify Technology had a net margin of 15.74% and a return on equity of 35.64%. The business's revenue for the quarter was up 16.3% on a year-over-year basis. During the same period in the previous year, the firm posted $3.28 earnings per share. On average, analysts predict that Spotify Technology will post 13.62 EPS for the current year.

Insider Buying and Selling at Spotify Technology

In other Spotify Technology news, CEO Gustav Söderström sold 20,913 shares of the business's stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $544.19, for a total value 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 $10,897,404.75. The trade was a 51.08% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at 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 company's stock in a transaction dated 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 sale, the chief executive officer owned 66,773 shares of the company's stock, valued at approximately $33,526,723.30. This trade represents a 7.53% 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 68,092 shares of company stock worth $35,762,410 over the last three months. Company insiders own 0.40% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the stock. Pin Oak Investment Advisors Inc. acquired a new position in Spotify Technology during the second quarter valued at approximately $27,000. Whipplewood Advisors LLC raised its position in shares of Spotify Technology by 423.1% in the first quarter. Whipplewood Advisors LLC now owns 68 shares of the company's stock valued at $33,000 after purchasing an additional 55 shares during the period. Palladiem LLC acquired a new stake in shares of Spotify Technology in the first quarter worth $34,000. Tsfg LLC lifted its stake in shares of Spotify Technology by 39.7% in the second quarter. Tsfg LLC now owns 81 shares of the company's stock worth $37,000 after buying an additional 23 shares during the last quarter. Finally, Elevation Wealth Partners LLC lifted its stake in shares of Spotify Technology by 142.9% in the third quarter. Elevation Wealth Partners LLC now owns 85 shares of the company's stock worth $41,000 after buying an additional 50 shares during the last quarter. 84.09% of the stock is owned by institutional investors.

Key Headlines Impacting Spotify Technology

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

• Positive Sentiment: Jefferies raised its price target for Spotify to $620 from $600 and described the platform as “highly defensible” against artificial-intelligence competition. Several other firms, including JPMorgan, Morgan Stanley, Guggenheim, Barclays, Wells Fargo, Cantor Fitzgerald, Oppenheimer and Citizens JMP, also maintained bullish views or raised their targets. Jefferies Spotify analysis
• Positive Sentiment: Spotify’s latest quarter showed double-digit revenue growth and significant gains in users and subscribers. Management expects continued momentum in the current quarter, with guidance calling for roughly €5.2 billion in revenue and 10% user growth. Spotify earnings growth analysis
• Neutral Sentiment: Spotify retains a strong competitive position through its scale, market share and exclusive content, but investors are monitoring potential bundling pressure from Apple and YouTube Music. Piper Sandler reaffirmed a Neutral rating, highlighting a more balanced risk-reward profile. Spotify earnings and competitive outlook
• Negative Sentiment: Spotify’s quarterly results fell short of expectations, with adjusted earnings and revenue missing analyst forecasts. The company’s reported EPS of $2.81 was below the $3.18 consensus, while revenue of $5.63 billion was slightly under the $5.64 billion estimate. Spotify earnings miss
• Negative Sentiment: Engagement concerns at Netflix have spread across streaming and media stocks, weighing on Spotify despite its company-specific growth drivers. This broader risk-off move suggests investors are scrutinizing the sustainability of streaming usage and monetization. Streaming-sector selloff

About Spotify Technology

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.

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