Spotify Technology (NYSE:SPOT) Now Covered by Piper Sandler

Key Points

• Piper Sandler initiated coverage of Spotify with a “neutral” rating and a $540 price target, implying approximately 5.17% upside from the stock’s current price.
• Analyst sentiment remains broadly positive, with Spotify holding a consensus “Moderate Buy” rating and an average price target of $590.24, despite several firms recently lowering their targets.
• Spotify’s latest quarterly results fell slightly short of expectations, with EPS of $3.03 versus $3.16 expected and revenue of $5.45 billion versus $5.47 billion estimated; meanwhile, the company plans to expand audiobooks to more than 180 markets by the end of 2026.

Stock analysts at Piper Sandler began coverage on shares of Spotify Technology (NYSE:SPOT - Get Free Report) in a research note issued on Thursday, Benzinga reports. The firm set a "neutral" rating and a $540.00 price target on the stock. Piper Sandler's price target would indicate a potential upside of 5.17% from the stock's current price.

Several other equities analysts also recently commented on SPOT. KeyCorp lowered their target price on shares of Spotify Technology from $680.00 to $660.00 and set an "overweight" rating on the stock in a research report on Thursday, October 1st. Wells Fargo & Company reduced their price target on Spotify Technology from $600.00 to $570.00 and set an "overweight" rating for the company in a research report on Thursday, July 9th. Rosenblatt Securities decreased 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. Argus reissued a "buy" rating and set a $600.00 price objective on shares of Spotify Technology in a report on Thursday, August 13th. Finally, Guggenheim restated a "buy" rating and issued a $565.00 target price on shares of Spotify Technology in a report on Wednesday, August 5th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $590.24.

Spotify Technology Stock Up 5.2%

NYSE SPOT opened at $513.43 on Thursday. The stock has a market capitalization of $105.71 billion, a PE ratio of 31.97, a price-to-earnings-growth ratio of 1.49 and a beta of 1.61. Spotify Technology has a 12-month low of $405.00 and a 12-month high of $700.12. The company has a 50 day moving average price of $516.94 and a two-hundred day moving average price of $493.29.

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 the consensus estimate of $3.16 by ($0.13). The business had revenue of $5.45 billion for the quarter, compared to analyst estimates of $5.47 billion. Spotify Technology had a return on equity of 41.39% and a net margin of 18.44%.The business's revenue for the quarter was up 13.9% compared to the same quarter last year. During the same quarter last year, the company earned ($0.42) EPS. As a group, equities analysts anticipate that Spotify Technology will post 13.85 EPS for the current year.

Insider Activity at Spotify Technology

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 on 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 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 ownership of the stock. 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 sold 47,182 shares of company stock valued at $24,677,392 over the last three months. 0.40% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Pin Oak Investment Advisors Inc. bought a new stake in shares of Spotify Technology in the second quarter valued at about $27,000. Portus Wealth Advisors LLC bought a new stake in shares of Spotify Technology in the 1st quarter worth approximately $32,000. Whipplewood Advisors LLC lifted its position in shares of Spotify Technology by 423.1% in the 1st quarter. Whipplewood Advisors LLC now owns 68 shares of the company's stock worth $33,000 after acquiring an additional 55 shares during the period. Palladiem LLC acquired a new stake in shares of Spotify Technology during the 1st quarter worth approximately $34,000. Finally, Osbon Capital Management LLC bought a new stake in shares of Spotify Technology during the fourth quarter valued at approximately $35,000. 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: Audiobooks expand substantially: Spotify plans to make its audiobook service available in more than 180 markets by the end of 2026, up from 22 currently. The rollout will include roughly 350,000 titles in more than 120 languages, increasing Spotify’s addressable market and creating additional subscription and engagement opportunities. Spotify expands audiobooks to over 180 markets
• Positive Sentiment: India launch adds growth potential: Spotify’s audiobook service is scheduled to launch in India on November 12, including Audiobooks+ options. India’s large population and expanding digital-media market could support long-term user and revenue growth. Spotify Audiobooks Launch in India
• Neutral Sentiment: Analyst sentiment remains generally constructive: Spotify has an average “Moderate Buy” rating, and a separate Zacks report describes Wall Street analysts as optimistic. However, the reports largely review existing recommendations rather than identify a new earnings or guidance catalyst. Spotify receives Moderate Buy rating
• Neutral Sentiment: High investor attention: Spotify is among the most-watched stocks on Zacks, but the coverage offers an assessment of whether the stock is attractive rather than a material change in company fundamentals. Is Spotify worth betting on now?
• Negative Sentiment: Valuation remains a concern: A Seeking Alpha analysis argues that Spotify’s roughly $100 billion market capitalization is too high, suggesting the stock may have limited upside unless audiobook expansion and other initiatives generate stronger profits. Spotify: $100 Billion Market Cap Is Still Too Much
• Negative Sentiment: UBS lowered its expectations: UBS reduced its expectations for Spotify’s stock price, adding pressure to the valuation narrative. The reported RSU-related share sale by Chief Human Resources Officer Anna Lundstrom was for tax withholding and appears administrative rather than a discretionary bearish signal. UBS lowers expectations for Spotify

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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