Research Analysts Offer Predictions for SPOT FY2027 Earnings

Key Points

• Erste Group Bank raised Spotify’s FY2027 EPS estimate to $17.74 from $17.66, well above the current analyst consensus of $14.29.
• Spotify’s latest quarter slightly missed expectations, reporting $3.03 in EPS versus $3.16 expected and $5.45 billion in revenue versus $5.47 billion projected. Revenue nonetheless increased 13.9% year over year.
• Analyst sentiment remains positive, with a consensus rating of “Moderate Buy” and a $609.05 target price; shares recently opened at $526.99. Institutional investors own 84.09% of the stock, while insiders sold shares primarily to cover tax obligations.

Spotify Technology (NYSE:SPOT - Free Report) - Stock analysts at Erste Group Bank upped their FY2027 earnings per share estimates for Spotify Technology in a research note issued on Tuesday, September 8th. Erste Group Bank analyst S. Lingnau now expects that the company will post earnings of $17.74 per share for the year, up from their prior estimate of $17.66. The consensus estimate for Spotify Technology's current full-year earnings is $14.29 per share.

Spotify Technology (NYSE:SPOT - Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The company reported $3.03 EPS for the quarter, missing analysts' consensus estimates 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 analysts' expectations of $5.47 billion. During the same period in the prior year, the company posted ($0.42) EPS. The company's revenue for the quarter was up 13.9% on a year-over-year basis.

A number of other analysts also recently weighed in on SPOT. Argus reissued a "buy" rating and set a $600.00 price target on shares of Spotify Technology in a research report on Thursday, August 13th. Wall Street Zen cut shares of Spotify Technology from a "buy" rating to a "hold" rating in a report on Saturday, July 25th. Citizens Jmp increased their price objective on shares of Spotify Technology from $600.00 to $625.00 and gave the company a "market outperform" rating in a research note on Friday, May 22nd. Weiss Ratings raised shares of Spotify Technology from a "hold (c)" rating to a "hold (c+)" rating in a research report on Wednesday, August 26th. Finally, JPMorgan Chase & Co. upped their target price on shares of Spotify Technology from $600.00 to $650.00 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, seventeen have issued a Buy rating and six have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $609.05.

Spotify Technology Stock Up 0.2%

Shares of SPOT opened at $526.99 on Monday. The business's 50 day moving average is $508.83 and its two-hundred day moving average is $494.04. Spotify Technology has a 52-week low of $405.00 and a 52-week high of $745.00. The firm has a market cap of $108.50 billion, a price-to-earnings ratio of 32.81, a PEG ratio of 1.55 and a beta of 1.59.

Institutional Investors Weigh In On Spotify Technology

Institutional investors have recently modified their holdings of the business. Pin Oak Investment Advisors Inc. acquired a new position in Spotify Technology in the second quarter valued at approximately $27,000. Portus Wealth Advisors LLC acquired a new stake in shares of Spotify Technology during the 1st quarter worth approximately $32,000. Kemnay Advisory Services Inc. bought a new stake in Spotify Technology in the fourth quarter valued at $32,000. Whipplewood Advisors LLC lifted its position in Spotify Technology by 423.1% in the 1st quarter. Whipplewood Advisors LLC now owns 68 shares of the company's stock valued at $33,000 after purchasing an additional 55 shares during the last quarter. Finally, Palladiem LLC bought a new stake in Spotify Technology during the 1st quarter valued at $34,000. Institutional investors own 84.09% of the company's stock.

Insiders Place Their Bets

In other Spotify Technology news, CEO Gustav Söderström sold 20,833 shares of the stock in a transaction on Monday, July 6th. The shares were sold at an average price of $478.45, for a total transaction of $9,967,548.85. Following the sale, the chief executive officer directly owned 20,259 shares of the company's stock, valued at approximately $9,692,918.55. This represents a 50.70% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 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 firm's stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $502.10, for a total transaction of $2,729,415.60. Following the completion of the transaction, the chief executive officer owned 66,773 shares in the company, valued at approximately $33,526,723.30. The trade was a 7.53% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders sold 52,538 shares of company stock valued at $25,878,250. 0.40% of the stock is currently owned by corporate insiders.

Spotify Technology Company Profile

Spotify Technology SA is a Luxembourg-based audio streaming company that operates the Spotify platform. The service gives users access to a broad catalog of music, podcasts and audiobooks, with features for searching, discovering, creating and sharing audio content across connected devices.

Spotify offers an ad-supported service at no subscription cost and paid Premium plans that provide additional features, including ad-free listening and offline playback. The company generates revenue primarily through subscriptions and advertising, while working with music labels, publishers, podcast creators and other rights holders to distribute content.

Founded in Stockholm in 2006 by Daniel Ek and Martin Lorentzon, Spotify launched its streaming service in 2008.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.