Spotify Technology (NYSE:SPOT) Sees Large Volume Increase After Strong Earnings

Spotify Technology S.A. (NYSE:SPOT - Get Free Report) shares saw unusually-strong trading volume on Wednesday following a stronger than expected earnings report. Approximately 2,455,653 shares traded hands during mid-day trading, an increase of 17% from the previous session's volume of 2,105,080 shares.The stock last traded at $294.13 and had previously closed at $303.31.

The company reported $1.05 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.63 by $0.42. Spotify Technology had a negative net margin of 4.01% and a negative return on equity of 23.43%. The business had revenue of $3.95 billion during the quarter, compared to analyst estimates of $3.87 billion. During the same period last year, the firm posted ($1.24) EPS.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on SPOT shares. Barclays increased their price objective on shares of Spotify Technology from $335.00 to $350.00 and gave the company an "overweight" rating in a report on Wednesday. JPMorgan Chase & Co. raised their target price on shares of Spotify Technology from $320.00 to $365.00 and gave the company an "overweight" rating in a report on Wednesday. UBS Group raised their target price on shares of Spotify Technology from $274.00 to $375.00 and gave the company a "buy" rating in a report on Friday, April 5th. Bank of America raised their target price on shares of Spotify Technology from $315.00 to $370.00 and gave the company a "buy" rating in a report on Wednesday. Finally, Loop Capital raised their target price on shares of Spotify Technology from $165.00 to $250.00 and gave the company a "hold" rating in a report on Monday. Eight analysts have rated the stock with a hold rating and nineteen have issued a buy rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $301.81.

Hedge Funds Weigh In On Spotify Technology

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. First Horizon Advisors Inc. grew its stake in shares of Spotify Technology by 195.0% during the third quarter. First Horizon Advisors Inc. now owns 177 shares of the company's stock worth $27,000 after acquiring an additional 117 shares during the last quarter. Pinnacle Bancorp Inc. purchased a new stake in shares of Spotify Technology during the fourth quarter worth about $29,000. GAMMA Investing LLC purchased a new stake in shares of Spotify Technology during the fourth quarter worth about $32,000. Lindbrook Capital LLC grew its stake in shares of Spotify Technology by 32.3% during the fourth quarter. Lindbrook Capital LLC now owns 205 shares of the company's stock worth $39,000 after acquiring an additional 50 shares during the last quarter. Finally, Future Financial Wealth Managment LLC purchased a new stake in shares of Spotify Technology during the first quarter worth about $40,000. Hedge funds and other institutional investors own 84.09% of the company's stock.

Spotify Technology Stock Down 7.2 %

The firm has a market cap of $55.80 billion, a PE ratio of -95.05 and a beta of 1.63. The stock has a 50 day moving average price of $269.74 and a two-hundred day moving average price of $217.24.

Spotify Technology Company Profile

Spotify Technology SA, together with its subsidiaries, provides audio streaming subscription services worldwide. It operates through two segments, Premium and Ad-Supported. The Premium segment offers unlimited online and offline streaming access to its catalog of music and podcasts without commercial breaks to its subscribers.