Spotify Technology (NYSE:SPOT) Receives Consensus Rating of "Moderate Buy" from Brokerages

Key Points

• Spotify has a “Moderate Buy” consensus rating from 25 analysts: 17 recommend buying, six rate it a hold, and two assign a strong-buy rating. The average 12-month price target is approximately $609.
• The company’s latest quarter fell slightly short of expectations, with EPS of $2.98 versus a $3.16 consensus and revenue of $5.45 billion versus $5.47 billion expected; however, revenue increased 13.9% year over year.
• SPOT opened at $491.05, near its 50-day and 200-day moving averages, while insiders sold $59.1 million worth of shares over the past 90 days. Institutional investors continue to own a substantial 84.09% of the stock.

Spotify Technology (NYSE:SPOT - Get Free Report) has been assigned an average recommendation of "Moderate Buy" from the twenty-five ratings firms that are covering the company, Marketbeat Ratings reports. Six equities research analysts have rated the stock with a hold rating, seventeen have given a buy rating and two have assigned a strong buy rating to the company. The average 1-year price objective among brokers that have covered the stock in the last year is $609.0476.

Several analysts recently issued reports on the company. UBS Group decreased their target price on Spotify Technology from $735.00 to $690.00 and set a "buy" rating on the stock in a research note on Friday, July 10th. Wall Street Zen downgraded Spotify Technology from a "buy" rating to a "hold" rating in a research note on Saturday, July 25th. Rosenblatt Securities cut their price objective on shares of Spotify Technology from $531.00 to $527.00 and set a "neutral" rating for the company in a report on Wednesday, August 5th. Citizens Jmp lifted their price objective 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. Finally, The Goldman Sachs Group reduced their price objective on shares of Spotify Technology from $670.00 to $600.00 and set a "buy" rating on the stock in a research report on Wednesday, April 29th.

Spotify Technology Stock Performance

Shares of SPOT stock opened at $491.05 on Tuesday. The stock has a fifty day simple moving average of $483.26 and a two-hundred day simple moving average of $484.68. The firm has a market capitalization of $101.10 billion, a PE ratio of 30.58, a PEG ratio of 1.26 and a beta of 1.58. Spotify Technology has a 52-week low of $405.00 and a 52-week high of $745.00.

Spotify Technology (NYSE:SPOT - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The company reported $2.98 EPS for the quarter, missing the consensus estimate of $3.16 by ($0.18). The business had revenue of $5.45 billion during the quarter, compared to analysts' expectations of $5.47 billion. Spotify Technology had a net margin of 18.44% and a return on equity of 41.39%. Spotify Technology's revenue was up 13.9% on a year-over-year basis. During the same quarter in the previous year, the firm earned ($0.42) earnings per share. On average, sell-side analysts forecast that Spotify Technology will post 14.3 EPS for the current fiscal year.

Insider Activity at Spotify Technology

In other Spotify Technology news, Director Christopher P. Marshall sold 2,650 shares of Spotify Technology stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $519.86, for a total value of $1,377,629.00. Following the sale, the director directly owned 4,039 shares in the company, valued at approximately $2,099,714.54. The trade was a 39.62% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Thomas O. Staggs sold 5,477 shares of Spotify Technology stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $526.00, for a total transaction of $2,880,902.00. Following the completion of the sale, the director owned 3,619 shares in the company, valued at approximately $1,903,594. This represents a 60.21% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 116,878 shares of company stock valued at $59,081,110 in the last ninety days. Corporate insiders own 0.40% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Quadcap Wealth Management LLC lifted its position in shares of Spotify Technology by 5.7% in the third quarter. Quadcap Wealth Management LLC now owns 295 shares of the company's stock worth $206,000 after buying an additional 16 shares in the last quarter. Objectivity Squared LLC grew its holdings in Spotify Technology by 0.8% during the 4th quarter. Objectivity Squared LLC now owns 2,582 shares of the company's stock valued at $1,499,000 after buying an additional 20 shares in the last quarter. Condor Capital Management grew its holdings in Spotify Technology by 2.6% during the 4th quarter. Condor Capital Management now owns 990 shares of the company's stock valued at $575,000 after buying an additional 25 shares in the last quarter. Carl P. Sherr & Co. LLC increased its stake in Spotify Technology by 0.7% in the 1st quarter. Carl P. Sherr & Co. LLC now owns 4,138 shares of the company's stock worth $2,007,000 after acquiring an additional 27 shares during the last quarter. Finally, Legacy Advisors LLC increased its stake in Spotify Technology by 1.1% in the 4th quarter. Legacy Advisors LLC now owns 2,622 shares of the company's stock worth $1,523,000 after acquiring an additional 28 shares during the last quarter. Hedge funds and other institutional investors own 84.09% of the company's stock.

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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