Spotify Technology (NYSE:SPOT) Price Target Cut to $690.00 by Analysts at UBS Group

Key Points

• UBS Group cut its price target on Spotify Technology from $735 to $690 but kept a buy rating, implying about 44% upside from the prior close.
• Analysts remain generally constructive on SPOT, with a consensus rating of Moderate Buy and an average price target of $638.58, even as some firms have recently trimmed their targets.
• Spotify’s latest earnings beat expectations, reporting $4.04 EPS on $5.25 billion in revenue, while shares traded lower on the day and insiders have also been selling stock in recent weeks.

Spotify Technology (NYSE:SPOT - Get Free Report) had its price target dropped by investment analysts at UBS Group from $735.00 to $690.00 in a research note issued to investors on Friday,Benzinga reports. The firm currently has a "buy" rating on the stock. UBS Group's price target indicates a potential upside of 44.45% from the company's previous close.

Several other equities research analysts have also recently issued reports on SPOT. Morgan Stanley lifted their target price on Spotify Technology from $590.00 to $610.00 and gave the stock an "overweight" rating in a report on Friday, May 22nd. Daiwa Securities Group started coverage on Spotify Technology in a research note on Thursday, March 26th. They set an "outperform" rating and a $535.00 price target for the company. Canaccord Genuity Group cut their price target on Spotify Technology from $750.00 to $720.00 and set a "buy" rating for the company in a report on Wednesday, April 29th. Wall Street Zen downgraded Spotify Technology from a "buy" rating to a "hold" rating in a research note on Saturday, June 13th. Finally, Cantor Fitzgerald upped their price objective on Spotify Technology from $430.00 to $520.00 and gave the stock a "neutral" rating in a report on Tuesday, May 26th. Two equities research analysts have rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat.com, Spotify Technology currently has an average rating of "Moderate Buy" and a consensus price target of $638.58.

Spotify Technology Stock Performance

Shares of Spotify Technology stock traded down $8.19 on Friday, hitting $477.69. 437,527 shares of the company traded hands, compared to its average volume of 2,481,542. Spotify Technology has a 52 week low of $405.00 and a 52 week high of $748.30. The business has a 50-day simple moving average of $470.38 and a 200 day simple moving average of $495.42. The stock has a market capitalization of $98.35 billion, a P/E ratio of 38.01, a price-to-earnings-growth ratio of 1.19 and a beta of 1.56.

Spotify Technology (NYSE:SPOT - Get Free Report) last issued its 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. The firm had revenue of $5.25 billion during the quarter, compared to analyst estimates of $5.23 billion. Spotify Technology had a net margin of 15.56% and a return on equity of 35.73%. Spotify Technology's revenue for the quarter was up 8.2% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.07 earnings per share. Research analysts expect that Spotify Technology will post 14.62 earnings per share for the current year.

Insider Activity

In related news, CEO Gustav Soderstrom sold 20,833 shares of the 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 sale, the chief executive officer owned 20,492 shares in the company, valued at approximately $8,826,314.24. This represents a 50.41% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. 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. Also, Director Christopher P. Marshall sold 2,650 shares of the firm's stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $519.86, for a total value of $1,377,629.00. Following the completion of the sale, the director owned 4,039 shares of the company's stock, valued at approximately $2,099,714.54. This represents a 39.62% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 111,442 shares of company stock worth $54,757,553. Company insiders own 0.40% of the company's stock.

Hedge Funds Weigh In On Spotify Technology

A number of large investors have recently made changes to their positions in SPOT. KERR FINANCIAL PLANNING Corp purchased a new position in shares of Spotify Technology during the third quarter valued at approximately $26,000. Portus Wealth Advisors LLC purchased a new stake in shares of Spotify Technology in the first quarter worth approximately $32,000. Kemnay Advisory Services Inc. purchased a new stake in shares of Spotify Technology in the fourth quarter worth approximately $32,000. Whipplewood Advisors LLC lifted its stake in shares of Spotify Technology by 423.1% during the 1st quarter. Whipplewood Advisors LLC now owns 68 shares of the company's stock worth $33,000 after acquiring an additional 55 shares during the last quarter. Finally, Palladiem LLC bought a new stake in shares of Spotify Technology during the 1st quarter worth approximately $34,000. 84.09% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Spotify Technology

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

• Positive Sentiment: Spotify rolled out an update to one of its library features, adding new customization tools that could improve user engagement and support subscription retention. Spotify finally updated one of its best library features
• Positive Sentiment: One Yahoo Finance analysis said Spotify Technology (SPOT) could be about 35% undervalued based on discounted cash flow estimates, reinforcing the bullish case that the stock may still have room to run if growth holds up. Spotify (SPOT) Stock Could Be 35% Undervalued Despite Fraud Stream Removals
• Neutral Sentiment: Analysts remained generally constructive, with Wells Fargo trimming its price target to $570 and Rosenblatt lowering its target to $531, while both kept non-negative views. Analyst target changes for Spotify Technology
• Neutral Sentiment: Recent executive stock sales by co-CEOs Gustav Soderstrom and Alex Norstrom drew attention, but the filings indicate the shares were sold under pre-arranged plans and largely to cover tax withholding tied to vested equity awards. SEC Form 4 filing
• Negative Sentiment: Spotify also faced headlines about fraudulent stream removals and pushback tied to artificial streaming activity, which could raise concerns about platform trust, chart integrity, and reputational risk. Prediction Markets Face Spotify Pushback After $3 Million Kalshi Bet

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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