Citizens Jmp Forecasts Strong Price Appreciation for Spotify Technology (NYSE:SPOT) Stock

Key Points

• Citizens Jmp raised its price target on Spotify Technology from $600 to $625 and kept a market outperform rating, implying about 19.8% upside from the stock’s current price.
• Spotify’s latest earnings beat Wall Street expectations, reporting $4.04 EPS versus the $3.41 estimate and $5.25 billion in revenue, which was also slightly above consensus and up 8.2% year over year.
• Analyst sentiment remains broadly positive, with MarketBeat showing a Moderate Buy consensus and an average target price of $649.77, though some firms have recently trimmed targets or kept neutral/hold views.

Spotify Technology (NYSE:SPOT - Get Free Report) had its price objective boosted by stock analysts at Citizens Jmp from $600.00 to $625.00 in a research note issued on Friday,Benzinga reports. The firm currently has a "market outperform" rating on the stock. Citizens Jmp's price target suggests a potential upside of 19.78% from the company's current price.

Several other brokerages have also weighed in on SPOT. Pivotal Research cut their price objective on shares of Spotify Technology from $420.00 to $400.00 and set a "hold" rating on the stock in a research report on Wednesday, April 29th. Wells Fargo & Company dropped their price target on shares of Spotify Technology from $640.00 to $580.00 and set an "overweight" rating on the stock in a research note on Wednesday, April 29th. Arete Research raised shares of Spotify Technology from a "neutral" rating to a "buy" rating and set a $586.00 price objective for the company in a research note on Thursday, February 26th. Guggenheim decreased their price objective on shares of Spotify Technology from $600.00 to $565.00 and set a "buy" rating for the company in a report on Wednesday, April 29th. Finally, Moffett Nathanson assumed coverage on shares of Spotify Technology in a research report on Tuesday, January 27th. They set a "neutral" rating and a $487.00 target price on the stock. Two investment analysts have rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $649.77.

Spotify Technology Price Performance

SPOT traded up $31.87 on Friday, reaching $521.80. 2,131,700 shares of the company traded hands, compared to its average volume of 2,646,101. Spotify Technology has a 52-week low of $405.00 and a 52-week high of $785.00. The company has a market cap of $107.43 billion, a price-to-earnings ratio of 41.91, a PEG ratio of 1.05 and a beta of 1.55. The stock's 50 day moving average price is $479.71 and its 200-day moving average price is $523.90.

Spotify Technology (NYSE:SPOT - Get Free Report) last posted its quarterly earnings results on Tuesday, April 28th. The company reported $4.04 earnings per share for the quarter, topping analysts' consensus estimates of $3.41 by $0.63. Spotify Technology had a net margin of 15.56% and a return on equity of 35.73%. The business had revenue of $5.25 billion for the quarter, compared to the consensus estimate of $5.23 billion. During the same period in the prior year, the business posted $1.07 earnings per share. Spotify Technology's revenue for the quarter was up 8.2% compared to the same quarter last year. As a group, equities research analysts forecast that Spotify Technology will post 14.87 earnings per share for the current fiscal year.

Insider Buying and Selling at Spotify Technology

In related news, CEO Alex Norstrom sold 5,436 shares of the firm's stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $479.51, for a total value of $2,606,616.36. Following the transaction, the chief executive officer directly owned 69,989 shares in the company, valued at approximately $33,560,425.39. This trade represents a 7.21% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CEO Gustav Soderstrom sold 20,833 shares of Spotify Technology stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $430.72, for a total transaction of $8,973,189.76. Following the completion of the transaction, the chief executive officer owned 20,492 shares in the company, valued at $8,826,314.24. This trade represents a 50.41% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders have sold 47,102 shares of company stock valued at $21,444,648. 0.40% of the stock is owned by insiders.

Institutional Trading of Spotify Technology

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. KERR FINANCIAL PLANNING Corp bought a new position in Spotify Technology during the third quarter worth $26,000. Greykasell Wealth Strategies Inc. grew its position in Spotify Technology by 3,800.0% in the 3rd quarter. Greykasell Wealth Strategies Inc. now owns 39 shares of the company's stock worth $27,000 after purchasing an additional 38 shares during the last quarter. Westfuller Advisors LLC acquired a new stake in Spotify Technology in the 3rd quarter worth $29,000. Portus Wealth Advisors LLC bought a new position in shares of Spotify Technology during the 1st quarter worth about $32,000. Finally, Kemnay Advisory Services Inc. acquired a new position in shares of Spotify Technology during the fourth quarter valued at about $32,000. Institutional investors and hedge funds own 84.09% of the company's stock.

Key Spotify Technology News

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

• Positive Sentiment: Spotify outlined upbeat long-term targets, including mid-teens annual revenue growth and gross margins of 35% to 40% by 2030, reinforcing the case for continued earnings and cash flow expansion. Spotify stock pops on guidance at first investor day since 2022
• Positive Sentiment: The company announced new AI-driven products, including tools for premium users to create covers and remixes, plus AI-powered podcast and audiobook creation features, which could open new revenue streams and deepen subscriber engagement. Spotify adds AI-powered Q&A and briefing generation features to podcasts
• Positive Sentiment: Spotify also struck a licensing deal with Universal Music Group for responsible AI-generated covers and remixes, which supports creator partnerships while giving the platform a differentiated product offering. Spotify strikes deal with Universal Music to let premium users create AI covers, remixes
• Positive Sentiment: Additional Investor Day announcements, such as reserving concert tickets for top fans, could improve user retention and increase premium value. Spotify Will Set Aside Concert Tickets for Artists' Superfans
• Neutral Sentiment: Media coverage on Spotify’s 20th anniversary and podcast strategy is more of a brand and product update than a clear near-term financial catalyst. Spotify 20th Anniversary: What Impact Did Podcasts Have On The Company?
• Negative Sentiment: One report noted that Spotify may face higher costs in Canada due to rule changes, which could pressure margins if broader regulatory cost headwinds emerge. Netflix, Spotify to face higher costs as Canada changes rules
• Negative Sentiment: Pomerantz LLP said it is investigating claims on behalf of Spotify investors, a legal overhang that can weigh on sentiment even if no wrongdoing is proven. INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Spotify Technology S.A. - SPOT

About Spotify Technology

Spotify Technology is a digital audio streaming company best known for its on-demand music service and a growing portfolio of spoken-word content. Founded in Sweden in 2006 by Daniel Ek and Martin Lorentzon and launched commercially in 2008, the company offers a cross-platform app that enables users to discover, stream and organize music, podcasts and other audio. Its primary consumer products include a free, ad-supported tier and a paid Spotify Premium subscription that provides ad-free listening, offline playback and higher-quality audio streams.

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