Spotify Technology (NYSE:SPOT) Stock Price Target Cut by KeyCorp

Key Points

• KeyCorp lowered Spotify’s price target from $680 to $660 while maintaining an “overweight” rating, implying approximately 35.3% upside from the reported share price.
• Analyst sentiment remains positive overall, with Spotify carrying a consensus “Moderate Buy” rating and an average price target of $593.50.
• Spotify’s latest quarterly results slightly missed expectations: EPS came in at $3.03 versus $3.16 expected, while revenue reached $5.45 billion, up 13.9% year over year.

Spotify Technology (NYSE:SPOT - Get Free Report) had its price objective reduced by stock analysts at KeyCorp from $680.00 to $660.00 in a research report issued on Thursday, Benzinga reports. The firm currently has an "overweight" rating on the stock. KeyCorp's price objective would suggest a potential upside of 35.28% from the stock's current price.

Several other research analysts also recently commented on the company. Cantor Fitzgerald boosted their target price on Spotify Technology from $510.00 to $530.00 and gave the stock a "neutral" rating in a research note on Wednesday, August 5th. Rosenblatt Securities cut their target price on shares of Spotify Technology from $531.00 to $527.00 and set a "neutral" rating on the stock in a research report on Wednesday, August 5th. Benchmark lowered their price target on shares of Spotify Technology from $695.00 to $650.00 and set a "buy" rating for the company in a report on Wednesday, July 22nd. 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, UBS Group dropped their target price on Spotify Technology from $735.00 to $690.00 and set a "buy" rating for the company in a research report on Friday, July 10th. One research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat.com, Spotify Technology has a consensus rating of "Moderate Buy" and an average target price of $593.50.

Spotify Technology Stock Performance

Shares of NYSE SPOT opened at $487.88 on Thursday. The stock has a market capitalization of $100.44 billion, a P/E ratio of 30.38, a PEG ratio of 1.51 and a beta of 1.59. The stock's fifty day moving average is $517.64 and its 200 day moving average is $494.11. Spotify Technology has a 52 week low of $405.00 and a 52 week high of $721.67.

Spotify Technology (NYSE:SPOT - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The company reported $3.03 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $3.16 by ($0.13). Spotify Technology had a return on equity of 41.39% and a net margin of 18.44%.The firm had revenue of $5.45 billion for the quarter, compared to analyst estimates of $5.47 billion. During the same quarter in the previous year, the company earned ($0.42) earnings per share. The company's quarterly revenue was up 13.9% on a year-over-year basis. Equities research analysts forecast that Spotify Technology will post 13.85 earnings per share for the current year.

Insider Activity

In related news, CEO Gustav Söderström sold 20,913 shares of the stock in a transaction that occurred 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 directly owned 20,025 shares of the company's stock, valued at approximately $10,897,404.75. This trade represents a 51.08% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 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 on Monday, August 3rd. The shares were sold at an average price of $502.10, for a total value of $2,729,415.60. Following the completion of the transaction, the chief executive officer owned 66,773 shares of the company's stock, valued at $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. In the last quarter, insiders sold 73,451 shares of company stock valued at $37,258,896. 0.40% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of SPOT. QRG Capital Management Inc. boosted its holdings in shares of Spotify Technology by 9.6% in the second quarter. QRG Capital Management Inc. now owns 798 shares of the company's stock worth $366,000 after acquiring an additional 70 shares during the period. Andra AP fonden grew its position in Spotify Technology by 1.3% during the 2nd quarter. Andra AP fonden now owns 31,320 shares of the company's stock worth $14,380,000 after acquiring an additional 400 shares during the last quarter. National Pension Service increased its stake in shares of Spotify Technology by 5.7% in the second quarter. National Pension Service now owns 605,199 shares of the company's stock worth $277,865,000 after buying an additional 32,696 shares during the period. WINTON GROUP Ltd purchased a new position in shares of Spotify Technology in the second quarter valued at about $14,426,000. Finally, Engineers Gate Manager LP increased its position in shares of Spotify Technology by 507.2% in the second quarter. Engineers Gate Manager LP now owns 69,234 shares of the company's stock valued at $31,787,000 after acquiring an additional 57,831 shares during the period. 84.09% of the stock is owned by 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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