Erste Group Bank Has Negative View of SPOT FY2026 Earnings

Key Points

• Erste Group Bank lowered its FY2026 EPS estimate for Spotify to $14.27 from $14.65, citing a more cautious outlook on earnings.
• The new estimate remains slightly below the consensus forecast of $14.68 per share, while Erste also projected FY2027 EPS of $17.70.
• Despite the downgrade, analyst sentiment on Spotify remains generally positive, with a Moderate Buy consensus and a price target of $641.83.

Spotify Technology (NYSE:SPOT - Free Report) - Research analysts at Erste Group Bank reduced their FY2026 earnings per share estimates for Spotify Technology in a report released on Thursday, June 25th. Erste Group Bank analyst S. Lingnau now anticipates that the company will earn $14.27 per share for the year, down from their previous forecast of $14.65. The consensus estimate for Spotify Technology's current full-year earnings is $14.68 per share. Erste Group Bank also issued estimates for Spotify Technology's FY2027 earnings at $17.70 EPS.

A number of other research firms also recently issued reports on SPOT. Wells Fargo & Company raised their price target on shares of Spotify Technology from $580.00 to $600.00 and gave the stock an "overweight" rating in a research report on Friday, May 22nd. Daiwa Securities Group initiated coverage on shares of Spotify Technology in a research report on Thursday, March 26th. They set an "outperform" rating and a $535.00 price objective for the company. The Goldman Sachs Group dropped their price objective on shares of Spotify Technology from $670.00 to $600.00 and set a "buy" rating on the stock in a research note on Wednesday, April 29th. Citizens Jmp raised their target price on shares of Spotify Technology from $600.00 to $625.00 and gave the stock a "market outperform" rating in a report on Friday, May 22nd. Finally, Morgan Stanley lifted their target price on Spotify Technology from $590.00 to $610.00 and gave the company an "overweight" rating in a research note on Friday, May 22nd. Two research analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating and six have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $641.83.

Spotify Technology Price Performance

Shares of SPOT opened at $461.07 on Tuesday. The stock has a market capitalization of $94.92 billion, a PE ratio of 36.74, a price-to-earnings-growth ratio of 1.12 and a beta of 1.56. The business's fifty day moving average price is $475.02 and its 200 day moving average price is $501.24. Spotify Technology has a 12-month low of $405.00 and a 12-month high of $778.33.

Spotify Technology (NYSE:SPOT - Get Free Report) last issued its earnings results on Tuesday, April 28th. The company reported $4.04 EPS for the quarter, topping the consensus estimate of $3.41 by $0.63. Spotify Technology had a return on equity of 35.73% and a net margin of 15.56%.The company had revenue of $5.25 billion during the quarter, compared to analyst estimates of $5.23 billion. During the same quarter last year, the firm earned $1.07 EPS. The business's revenue was up 8.2% on a year-over-year basis.

Insiders Place Their Bets

In related news, CEO Alex Norstrom sold 5,436 shares of Spotify Technology stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $479.51, for a total transaction of $2,606,616.36. Following the sale, the chief executive officer directly owned 69,989 shares in the company, valued at $33,560,425.39. The trade was a 7.21% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Sven Hans Martin Lorentzon sold 35,380 shares of the company's stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $525.73, for a total transaction of $18,600,327.40. Following the completion of the sale, the director directly owned 6,383 shares of the company's stock, valued at $3,355,734.59. The trade was a 84.72% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 111,442 shares of company stock worth $54,647,508. 0.40% of the stock is owned by company insiders.

Institutional Trading of Spotify Technology

A number of institutional investors have recently made changes to their positions in SPOT. Quadcap Wealth Management LLC boosted its stake in shares of Spotify Technology by 5.7% during the 3rd quarter. Quadcap Wealth Management LLC now owns 295 shares of the company's stock valued at $206,000 after buying an additional 16 shares during the period. Sagespring Wealth Partners LLC boosted its position in Spotify Technology by 2.9% during the fourth quarter. Sagespring Wealth Partners LLC now owns 636 shares of the company's stock valued at $370,000 after purchasing an additional 18 shares during the last quarter. Aprio Wealth Management LLC boosted its position in Spotify Technology by 3.1% during the third quarter. Aprio Wealth Management LLC now owns 633 shares of the company's stock valued at $442,000 after purchasing an additional 19 shares during the last quarter. Modern Wealth Management LLC grew its stake in Spotify Technology by 7.4% in the third quarter. Modern Wealth Management LLC now owns 289 shares of the company's stock valued at $202,000 after purchasing an additional 20 shares in the last quarter. Finally, Objectivity Squared LLC grew its stake in Spotify Technology by 0.8% in the fourth quarter. Objectivity Squared LLC now owns 2,582 shares of the company's stock valued at $1,499,000 after purchasing an additional 20 shares in the last quarter. 84.09% of the stock is owned by institutional investors and hedge funds.

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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