Spotify Technology (NYSE:SPOT) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Spotify Technology currently has a consensus analyst rating of "Moderate Buy", with 22 buy ratings, 2 strong buys, and 5 holds among 29 covering firms. The average 1-year price target is about $645.77.
• Recent analyst notes were mixed but generally supportive: several firms trimmed price targets, while Goldman Sachs, JPMorgan, and Guggenheim still maintained bullish ratings. Cantor Fitzgerald was more cautious, cutting its target and assigning a neutral rating.
• The company posted a solid latest quarter, beating earnings expectations with $4.04 EPS versus $3.41 expected and revenue slightly above forecasts at $5.25 billion. However, shares have been under pressure, and sentiment is clouded by insider selling and a new investor investigation.

Shares of Spotify Technology (NYSE:SPOT - Get Free Report) have received a consensus rating of "Moderate Buy" from the twenty-nine research firms that are currently covering the stock, Marketbeat.com reports. Five equities research analysts have rated the stock with a hold recommendation, twenty-two have given a buy recommendation and two have assigned a strong buy recommendation to the company. The average 1 year price target among brokerages that have updated their coverage on the stock in the last year is $645.7692.

A number of analysts recently commented on the company. Daiwa Securities Group started coverage on Spotify Technology in a research report on Thursday, March 26th. They issued an "outperform" rating and a $535.00 target price for the company. Guggenheim reduced their price objective on Spotify Technology from $600.00 to $565.00 and set a "buy" rating for the company in a research note on Wednesday, April 29th. Cantor Fitzgerald decreased their price objective on Spotify Technology from $525.00 to $430.00 and set a "neutral" rating for the company in a report on Wednesday, April 29th. The Goldman Sachs Group lowered their target price on Spotify Technology from $670.00 to $600.00 and set a "buy" rating on the stock in a research report on Wednesday, April 29th. Finally, JPMorgan Chase & Co. cut their target price on Spotify Technology from $700.00 to $600.00 and set an "overweight" rating on the stock in a report on Wednesday, April 29th.

Key Spotify Technology News

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

• Positive Sentiment: Spotify continues to draw bullish analyst attention, with recent commentary highlighting meaningful upside from current levels and noting that most covering analysts still rate the stock a Buy. Spotify Technology (SPOT) Down 23% YTD, Should You Buy Before the Next Bull Run?
• Positive Sentiment: Spotify is expanding its AI push, including adding French, German, Italian, and Brazilian Portuguese support to its AI DJ feature, which could broaden engagement and strengthen product differentiation. Spotify's AI DJ now supports French, German, Italian and Brazilian Portuguese
• Positive Sentiment: Management is also leaning into AI-generated personal audio, suggesting a potential new growth avenue and longer-term monetization opportunity. Spotify wants to become the home for AI-generated personal audio
• Positive Sentiment: The company’s recent earnings report was solid, with an earnings beat and revenue slightly above expectations, reinforcing the case that fundamentals remain healthy.
• Neutral Sentiment: Spotify is receiving more investor attention online, which can increase trading interest but does not by itself change the business outlook. Investors Heavily Search Spotify Technology (SPOT): Here is What You Need to Know
• Neutral Sentiment: Coverage of a Peloton earnings beat mentioned a Spotify partnership, but that looks more like incremental visibility than a major near-term driver for Spotify. Peloton Soars 11% on Q3 Profit Turnaround, Raised Guidance, Spotify Partnership
• Negative Sentiment: CEO Gustav Söderström sold 20,833 shares in a pre-arranged 10b5-1 sale, which can weigh on sentiment even though it was tied to tax withholding on vesting awards. Insider sale by Gustav Söderström
• Negative Sentiment: Pomerantz LLP announced an investor investigation into Spotify, adding a legal overhang that could pressure the shares until more details emerge. INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Spotify Technology S.A. - SPOT

Spotify Technology Stock Down 2.2%

Shares of NYSE SPOT opened at $417.86 on Friday. The firm has a market cap of $86.03 billion, a PE ratio of 33.30, a P/E/G ratio of 1.03 and a beta of 1.55. The company's fifty day simple moving average is $496.76 and its 200 day simple moving average is $539.88. Spotify Technology has a 12-month low of $405.00 and a 12-month high of $785.00.

Spotify Technology (NYSE:SPOT - Get Free Report) last posted its quarterly earnings results on Tuesday, April 28th. The company reported $4.04 earnings per share for the quarter, beating the consensus estimate of $3.41 by $0.63. The firm had revenue of $5.25 billion during the quarter, compared to the consensus estimate of $5.23 billion. Spotify Technology had a net margin of 15.56% and a return on equity of 35.73%. The business's revenue was up 8.2% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.07 earnings per share. On average, equities analysts predict that Spotify Technology will post 14.59 earnings per share for the current year.

Insiders Place Their Bets

In other Spotify Technology news, CEO Gustav Soderstrom sold 20,833 shares of the firm's stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $473.52, for a total value of $9,864,842.16. Following the transaction, the chief executive officer directly owned 20,609 shares of the company's stock, valued at approximately $9,758,773.68. This trade represents a 50.27% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Alex Norstrom sold 5,436 shares of Spotify Technology stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $479.51, for a total transaction of $2,606,616.36. Following the transaction, the chief executive officer owned 69,989 shares of the company's stock, valued at $33,560,425.39. This represents a 7.21% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 47,102 shares of company stock worth $21,444,648 over the last ninety days. Insiders own 0.40% of the company's stock.

Hedge Funds Weigh In On Spotify Technology

A number of hedge funds have recently added to or reduced their stakes in SPOT. KERR FINANCIAL PLANNING Corp bought a new position in shares of Spotify Technology in the third quarter valued at approximately $26,000. Greykasell Wealth Strategies Inc. grew its holdings in Spotify Technology by 3,800.0% during the third quarter. Greykasell Wealth Strategies Inc. now owns 39 shares of the company's stock worth $27,000 after buying an additional 38 shares in the last quarter. Westfuller Advisors LLC bought a new stake in Spotify Technology during the third quarter worth $29,000. Portus Wealth Advisors LLC purchased a new stake in Spotify Technology in the 1st quarter valued at $32,000. Finally, Kemnay Advisory Services Inc. purchased a new stake in Spotify Technology in the 4th quarter valued at $32,000. Institutional investors and hedge funds own 84.09% of the company's stock.

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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