Spotify Technology (NYSE:SPOT) Stock Keeps Market Outperform Rating at Citizens Jmp

Key Points

• Citizens Jmp reiterated its “market outperform” rating on Spotify and set a $625 price target, implying approximately 6.96% upside from the prior close.
• Analyst sentiment remains favorable overall, with a consensus “Moderate Buy” rating and an average price target of $615.24, despite several neutral ratings and recent target-price adjustments.
• Spotify shares closed at $584.33 after a 0.1% gain, while the company’s latest quarterly results slightly missed revenue and earnings estimates; revenue nevertheless grew 13.9% year over year.

Spotify Technology (NYSE:SPOT - Get Free Report)'s stock had its "market outperform" rating reiterated by analysts at Citizens Jmp in a report issued on Friday, Benzinga reports. They presently have a $625.00 target price on the stock. Citizens Jmp's target price would suggest a potential upside of 6.96% from the stock's previous close.

Several other brokerages have also issued reports on SPOT. Wall Street Zen lowered Spotify Technology from a "buy" rating to a "hold" rating in a research report on Saturday, July 25th. Morgan Stanley upped their price target on Spotify Technology from $610.00 to $640.00 and gave the stock an "overweight" rating in a research report on Monday, August 3rd. Cantor Fitzgerald upped their price target on Spotify Technology from $490.00 to $550.00 and gave the stock a "neutral" rating in a research report on Friday. Rosenblatt Securities reaffirmed a "neutral" rating and set a $527.00 price target on shares of Spotify Technology in a research report on Tuesday. Finally, 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. One research analyst has rated the stock with a Strong Buy rating, twenty-three have given a Buy rating and nine have given a Hold rating to the stock. Based on data from MarketBeat, Spotify Technology has a consensus rating of "Moderate Buy" and a consensus price target of $615.24.

Spotify Technology Stock Up 0.1%

Shares of SPOT traded up $0.67 on Friday, hitting $584.33. The company's stock had a trading volume of 445,875 shares, compared to its average volume of 2,194,788. The firm's fifty day moving average price is $525.20 and its 200-day moving average price is $497.27. Spotify Technology has a fifty-two week low of $405.00 and a fifty-two week high of $676.67. The firm has a market capitalization of $120.30 billion, a price-to-earnings ratio of 36.38, a P/E/G ratio of 1.63 and a beta of 1.61.

Spotify Technology (NYSE:SPOT - Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The company reported $3.03 earnings per share (EPS) for the quarter, missing the consensus estimate 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 during the quarter, compared to analyst estimates of $5.47 billion. During the same quarter in the prior year, the firm posted ($0.42) earnings per share. Spotify Technology's revenue for the quarter was up 13.9% compared to the same quarter last year. As a group, equities analysts predict that Spotify Technology will post 13.66 earnings per share for the current fiscal year.

Insider Transactions at Spotify Technology

In related news, CEO Alex Norström sold 5,436 shares of the firm's stock in a transaction dated 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 directly 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 ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 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 firm's stock in a transaction dated 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 transaction, the chief executive officer directly owned 20,025 shares in the company, valued at approximately $10,897,404.75. This represents a 51.08% decrease in their ownership of the stock. 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. Over the last ninety days, insiders have sold 68,092 shares of company stock worth $35,762,410. 0.40% of the stock is owned by insiders.

Hedge Funds Weigh In On Spotify Technology

A number of hedge funds have recently bought and sold shares of SPOT. Pin Oak Investment Advisors Inc. bought a new position in Spotify Technology during the second quarter worth about $27,000. Portus Wealth Advisors LLC bought a new position in Spotify Technology during the first quarter worth about $32,000. Whipplewood Advisors LLC increased its position in Spotify Technology by 423.1% during the first 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 bought a new position in Spotify Technology during the first quarter worth about $34,000. Finally, Tsfg LLC increased its position in Spotify Technology by 39.7% during the second quarter. Tsfg LLC now owns 81 shares of the company's stock worth $37,000 after acquiring an additional 23 shares during the period. 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: Subscriber growth exceeded expectations: Premium subscribers rose 9% year over year to 306 million, one million above Spotify’s guidance, while monthly active users increased 11% to 788 million. Management expects to reach approximately 316 million premium subscribers and 818 million monthly active users in the fourth quarter. Spotify Stock Surges on Q3 Subscriber Beat and Bullish Forecast
• Positive Sentiment: Profitability trends improved: Third-quarter revenue rose roughly 16% year over year to about €4.97 billion, operating income reached €672 million, and gross margin expanded to 33%. Spotify expects fourth-quarter operating income and gross margin to remain stronger as costs and investment intensity moderate. Spotify revenue rises as subscribers and margins improve
• Positive Sentiment: AI is viewed as a future growth catalyst: Spotify highlighted its AI-powered “taste model,” personalized experiences and efforts to make its service accessible through AI agents. The company said AI is accelerating feature development without increasing headcount, potentially supporting engagement, retention and long-term margin expansion. Spotify’s current AI bet
• Positive Sentiment: Analyst sentiment improved: Guggenheim raised its price target to $650 and assigned a Buy rating, while Barclays also lifted its target to $650 and maintained Overweight. Guggenheim Spotify recommendations
• Neutral Sentiment: Mixed quarterly results: Adjusted earnings per share and revenue were slightly below consensus, although revenue growth remained healthy and subscriber and margin metrics were stronger than expected. Spotify forecasts fourth-quarter profit above estimates
• Negative Sentiment: Valuation and analyst caution remain risks: Cantor Fitzgerald raised its target to $550 but retained a Neutral rating, implying limited upside from the referenced price level. The earnings miss could also pressure the stock if subscriber momentum or AI-related benefits fail to translate into sustained profits. Cantor Fitzgerald Spotify recommendations

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.