Spotify Technology (NYSE:SPOT) Given New $675.00 Price Target at UBS Group

Key Points

• UBS Group lowered Spotify’s price target from $690 to $675 while maintaining a “buy” rating, implying roughly 39.8% upside from the stock’s reported $482.92 price.
• Analyst sentiment remains broadly positive, with MarketBeat reporting a consensus “Moderate Buy” rating and an average price target of $592.75.
• Spotify’s latest quarter showed 13.9% year-over-year revenue growth to $5.45 billion, though earnings of $3.03 per share fell short of the $3.16 consensus estimate; insiders sold about $24.7 million of stock over the past 90 days.

Spotify Technology (NYSE:SPOT - Get Free Report) had its price objective lowered by stock analysts at UBS Group from $690.00 to $675.00 in a research report issued to clients and investors on Monday, Benzinga reports. The brokerage currently has a "buy" rating on the stock. UBS Group's price target would indicate a potential upside of 39.77% from the stock's current price.

A number of other equities research analysts have also issued reports on the stock. KeyCorp cut their price target on shares of Spotify Technology from $680.00 to $660.00 and set an "overweight" rating on the stock in a report on Thursday. Guggenheim reiterated a "buy" rating and set a $565.00 price target on shares of Spotify Technology in a report on Wednesday, August 5th. Weiss Ratings raised Spotify Technology from a "hold (c)" rating to a "hold (c+)" rating in a research report on Wednesday, August 26th. Wall Street Zen lowered Spotify Technology from a "buy" rating to a "hold" rating in a research report on Saturday, July 25th. Finally, Cantor Fitzgerald increased their price target on shares of Spotify Technology from $510.00 to $530.00 and gave the stock a "neutral" rating in a research report on Wednesday, August 5th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $592.75.

Spotify Technology Stock Performance

Shares of Spotify Technology stock traded up $10.03 during trading hours on Monday, reaching $482.92. The company's stock had a trading volume of 830,305 shares, compared to its average volume of 2,229,436. The stock has a market cap of $99.42 billion, a P/E ratio of 29.95, a price-to-earnings-growth ratio of 1.45 and a beta of 1.61. The company's 50 day simple moving average is $517.86 and its 200 day simple moving average is $493.57. Spotify Technology has a one year low of $405.00 and a one year high of $700.12.

Spotify Technology (NYSE:SPOT - Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The company reported $3.03 EPS for the quarter, missing analysts' consensus estimates 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%.Spotify Technology's quarterly revenue was up 13.9% compared to the same quarter last year. During the same quarter in the previous year, the company earned ($0.42) earnings per share. On average, sell-side analysts predict that Spotify Technology will post 13.85 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CEO Alex Norström sold 5,436 shares of the business's 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 owned 66,773 shares of the company's stock, valued at approximately $33,526,723.30. The trade was a 7.53% decrease in their ownership of the stock. The sale 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 Gustav Söderström sold 20,913 shares of the company's stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $544.19, for a total transaction of $11,380,645.47. Following the transaction, the chief executive officer directly owned 20,025 shares of the company's stock, valued at $10,897,404.75. This represents a 51.08% 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. Insiders sold a total of 47,182 shares of company stock worth $24,677,392 in the last ninety days. Insiders own 0.40% of the company's stock.

Hedge Funds Weigh In On Spotify Technology

Institutional investors and hedge funds have recently bought and sold shares of the business. Janus Henderson Group PLC grew its position in shares of Spotify Technology by 20.1% during the 1st quarter. Janus Henderson Group PLC now owns 1,711,015 shares of the company's stock worth $829,641,000 after buying an additional 286,844 shares during the period. Tiger Global Management LLC boosted its holdings in Spotify Technology by 25.3% during the first quarter. Tiger Global Management LLC now owns 1,580,761 shares of the company's stock worth $766,527,000 after buying an additional 319,300 shares during the last quarter. Deutsche Bank AG increased its stake in shares of Spotify Technology by 15.7% in the 4th quarter. Deutsche Bank AG now owns 1,485,921 shares of the company's stock valued at $862,889,000 after acquiring an additional 201,080 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in shares of Spotify Technology by 1,382.3% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,247,182 shares of the company's stock valued at $724,251,000 after acquiring an additional 1,163,045 shares during the period. Finally, Amundi grew its holdings in Spotify Technology by 20.0% during the first quarter. Amundi now owns 1,104,484 shares of the company's stock valued at $535,575,000 after purchasing an additional 183,994 shares during the period. Institutional investors and hedge funds own 84.09% of the company's stock.

About Spotify Technology

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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