Spotify Technology (NYSE:SPOT) Rating Increased to Buy at Wall Street Zen

Key Points

• Spotify Technology was upgraded by Wall Street Zen from hold to buy, adding to generally positive analyst sentiment on the stock.
• Other analysts remain mostly constructive: MarketBeat cites an average rating of Moderate Buy with an average target price of $638.58, despite some recent target cuts and adjustments.
• Spotify’s latest earnings beat expectations, with EPS of $4.04 versus $3.41 expected and revenue of $5.25 billion, up 8.2% year over year.

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

Other analysts have also issued research reports about the company. The Goldman Sachs Group decreased their price objective on Spotify Technology from $670.00 to $600.00 and set a "buy" rating on the stock in a research note on Wednesday, April 29th. Barclays boosted their target price on shares of Spotify Technology from $500.00 to $565.00 and gave the company an "overweight" rating in a research note on Friday, May 22nd. Rosenblatt Securities reduced their target price on shares of Spotify Technology from $534.00 to $531.00 and set a "neutral" rating on the stock in a report on Thursday. Cantor Fitzgerald upped their target price on shares of Spotify Technology from $430.00 to $520.00 and gave the company a "neutral" rating in a report on Tuesday, May 26th. Finally, KeyCorp decreased their price target on shares of Spotify Technology from $745.00 to $680.00 and set an "overweight" rating on the stock in a research note on Wednesday, April 29th. Two investment analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $638.58.

Spotify Technology Stock Performance

SPOT stock traded down $5.42 on Friday, reaching $480.46. The company had a trading volume of 934,812 shares, compared to its average volume of 1,663,636. The company's fifty day moving average is $471.10 and its 200 day moving average is $495.32. The company has a market cap of $98.92 billion, a P/E ratio of 38.28, a PEG ratio of 1.18 and a beta of 1.56. Spotify Technology has a 1 year low of $405.00 and a 1 year high of $748.30.

Spotify Technology (NYSE:SPOT - Get Free Report) last released its quarterly earnings results on Tuesday, April 28th. The company reported $4.04 earnings per share 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 the consensus estimate of $5.23 billion. During the same quarter last year, the business posted $1.07 earnings per share. Spotify Technology's revenue was up 8.2% compared to the same quarter last year. On average, sell-side analysts predict that Spotify Technology will post 14.62 earnings per share for the current year.

Insider Buying and Selling

In other news, Director Christopher P. Marshall sold 2,650 shares of the company's stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $519.86, for a total transaction of $1,377,629.00. Following the completion of the sale, the director directly owned 4,039 shares in the company, valued at $2,099,714.54. This represents a 39.62% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, Director Thomas O. Staggs sold 5,477 shares of the stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $526.00, for a total value of $2,880,902.00. Following the completion of the transaction, the director directly owned 3,619 shares in the company, valued at $1,903,594. This trade represents a 60.21% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 111,442 shares of company stock worth $54,757,553 over the last 90 days. Company insiders own 0.40% of the company's stock.

Institutional Investors Weigh In On Spotify Technology

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Northside Capital Management LLC purchased a new position in shares of Spotify Technology in the 2nd quarter worth about $523,000. Wasatch Advisors LP grew its holdings in shares of Spotify Technology by 7.2% during the 2nd quarter. Wasatch Advisors LP now owns 1,054 shares of the company's stock worth $484,000 after purchasing an additional 71 shares during the period. Community Financial Services Group LLC purchased a new stake in shares of Spotify Technology during the 2nd quarter worth about $52,000. Arista Wealth Management LLC increased its position in Spotify Technology by 62.0% during the 2nd quarter. Arista Wealth Management LLC now owns 2,439 shares of the company's stock worth $1,120,000 after purchasing an additional 933 shares in the last quarter. Finally, Valeo Financial Advisors LLC increased its position in Spotify Technology by 77.6% during the 2nd quarter. Valeo Financial Advisors LLC now owns 1,387 shares of the company's stock worth $637,000 after purchasing an additional 606 shares in the last quarter. 84.09% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about Spotify Technology

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

• Positive Sentiment: UBS expects Spotify to report accelerating Q2 revenue growth of about 15.6% on a constant-currency basis, with results likely in line with management guidance, reinforcing confidence in the company’s near-term fundamentals. Spotify on track for double-digit growth, UBS says ahead of Q2
• Positive Sentiment: UBS maintained a buy rating on Spotify Technology (SPOT), signaling continued analyst support despite a lower price target. UBS lowers Spotify price target to $690
• Neutral Sentiment: Several analysts also adjusted price targets this week, including Rosenblatt and Wells Fargo, but the ratings stayed mostly neutral-to-bullish, suggesting expectations have shifted more than the underlying thesis. Spotify analyst price target changes
• Neutral Sentiment: Recent insider share sales by executives, including the CEO and co-CEO, drew attention, but the filings indicate the transactions were tied to tax withholding or pre-arranged trading plans, which softens the negative signal. Spotify CEO sells shares
• Negative Sentiment: Some market commentary highlighted insider selling and valuation concerns, which could pressure sentiment if investors decide Spotify’s growth is already priced in. Spotify stock could be 35% undervalued despite fraud stream removals

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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