Spotify Technology (NYSE:SPOT) Downgraded to Hold Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Spotify from a “buy” to a “hold” rating, adding a cautious note to the stock’s analyst coverage.
• Despite the downgrade, analyst sentiment remains broadly positive: Spotify still has a “Moderate Buy” consensus rating and a consensus price target of $630.70, with several other firms maintaining or adjusting bullish views.
• Spotify’s recent fundamentals were solid, with quarterly EPS of $4.04 beating estimates and revenue rising 8.2% year over year to $5.25 billion.

Spotify Technology (NYSE:SPOT - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued on Saturday.

A number of other brokerages have also issued reports on SPOT. Canaccord Genuity Group reduced their price target on Spotify Technology from $750.00 to $720.00 and set a "buy" rating for the company in a research report on Wednesday, April 29th. The Goldman Sachs Group lowered their price target on Spotify Technology from $670.00 to $600.00 and set a "buy" rating on the stock in a report on Wednesday, April 29th. Cantor Fitzgerald lifted their price objective on shares of Spotify Technology from $430.00 to $520.00 and gave the company a "neutral" rating in a research note on Tuesday, May 26th. Wells Fargo & Company reduced their price objective on shares of Spotify Technology from $600.00 to $570.00 and set an "overweight" rating for the company in a report on Thursday, July 9th. Finally, Citizens Jmp increased their target price on shares of Spotify Technology from $600.00 to $625.00 and gave the company a "market outperform" rating in a research report on Friday, May 22nd. Two research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat.com, Spotify Technology currently has an average rating of "Moderate Buy" and a consensus price target of $630.70.

Spotify Technology Trading Up 3.0%

SPOT opened at $483.27 on Friday. The business's 50 day moving average is $481.62 and its 200-day moving average is $488.36. The stock has a market cap of $99.50 billion, a PE ratio of 38.51, a price-to-earnings-growth ratio of 1.16 and a beta of 1.56. Spotify Technology has a twelve month low of $405.00 and a twelve month high of $748.30.

Spotify Technology (NYSE:SPOT - Get Free Report) last issued its quarterly earnings data on Tuesday, April 28th. The company reported $4.04 earnings per share (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 business had revenue of $5.25 billion during the quarter, compared to the consensus estimate of $5.23 billion. During the same period in the previous year, the firm posted $1.07 earnings per share. The business's revenue was up 8.2% on a year-over-year basis. As a group, analysts forecast that Spotify Technology will post 14.51 EPS for the current year.

Insiders Place Their Bets

In other news, CEO Alex Norstrom sold 5,436 shares of the company's stock in a transaction on Monday, July 6th. The stock was sold at an average price of $480.86, for a total transaction of $2,613,954.96. Following the completion of the sale, the chief executive officer directly owned 67,582 shares of the company's stock, valued at $32,497,480.52. This represents a 7.44% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, 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 Gustav Soderstrom sold 20,833 shares of the stock in a transaction on Tuesday, May 5th. The shares were sold at an average price of $430.72, for a total value of $8,973,189.76. Following the completion of the transaction, the chief executive officer owned 20,492 shares of the company's stock, valued at $8,826,314.24. This trade represents a 50.41% decrease in their position. The disclosure for this sale is available in the SEC filing. 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 sold 111,442 shares of company stock worth $54,757,553. Corporate insiders own 0.40% of the company's stock.

Institutional Trading of Spotify Technology

Hedge funds have recently bought and sold shares of the company. Principal Financial Group Inc. boosted its position in shares of Spotify Technology by 12.9% in the fourth quarter. Principal Financial Group Inc. now owns 645,196 shares of the company's stock worth $374,672,000 after buying an additional 73,722 shares during the period. City Holding Co. lifted its stake in Spotify Technology by 2,515.9% in the 4th quarter. City Holding Co. now owns 5,598 shares of the company's stock worth $3,251,000 after acquiring an additional 5,384 shares in the last quarter. SBI Okasan Asset Management Co.Ltd. acquired a new stake in Spotify Technology during the 4th quarter worth about $1,162,000. Robeco Schweiz AG boosted its position in Spotify Technology by 37.6% during the 4th quarter. Robeco Schweiz AG now owns 18,544 shares of the company's stock worth $10,769,000 after acquiring an additional 5,071 shares during the period. Finally, Robinhood Asset Management LLC purchased a new position in Spotify Technology during the 4th quarter valued at about $8,233,000. 84.09% of the stock is owned by hedge funds and other institutional investors.

Spotify Technology News Roundup

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

• Positive Sentiment: Several recent articles frame Spotify as a potentially attractive value or buy candidate compared with peers, which can support sentiment around the stock. XYZ or SPOT: Which Is the Better Value Stock Right Now?
• Positive Sentiment: Spotify is being highlighted as a trending stock with strong analyst interest, reinforcing the idea that Wall Street remains broadly constructive on the name. Is It Worth Investing in Spotify (SPOT) Based on Wall Street's Bullish Views?
• Neutral Sentiment: Benchmark reportedly lowered its expectations for Spotify, which could temper enthusiasm but does not appear severe enough on its own to dominate trading. Benchmark Has Lowered Expectations for Spotify Technology NYSE: SPOT Stock Price
• Negative Sentiment: A report that Spotify deleted more than 500,000 fake streams tied to Malcolm Todd has raised fraud and integrity concerns, which could be viewed as a reputational headwind for the platform. EXCLUSIVE: Spotify Deleted 500,000 Fake Malcolm Todd Streams. A Former SEC Lawyer Says the Bots May Have Committed a Federal Crime

Spotify Technology Company Profile

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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