Spotify Technology (NYSE:SPOT) Shares Gap Down - Here's Why

Key Points

• Spotify Technology's stock gapped down significantly, opening at $657.53 after closing at $700.98, with shares last trading at $628.22.
• Equities research analysts show mixed sentiments, with DZ Bank downgrading to "strong sell" while JPMorgan and KeyCorp raised their price targets, reflecting an average rating of "Moderate Buy" with a target price of $727.52.
• Despite a 15.2% year-over-year revenue increase and a reported EPS of $1.13 missing estimates, Spotify's performance indicators maintain a market cap of $127.66 billion with significant institutional investment activity.

Shares of Spotify Technology (NYSE:SPOT - Get Free Report) gapped down prior to trading on Tuesday . The stock had previously closed at $700.98, but opened at $657.53. Spotify Technology shares last traded at $628.22, with a volume of 2,178,810 shares trading hands.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on SPOT shares. Wolfe Research raised Spotify Technology from a "peer perform" rating to an "outperform" rating and set a $660.00 price target for the company in a research report on Monday, April 21st. Rosenblatt Securities lowered their price objective on shares of Spotify Technology from $703.00 to $679.00 and set a "neutral" rating on the stock in a research note on Wednesday. Pivotal Research raised their price objective on shares of Spotify Technology from $800.00 to $900.00 and gave the stock a "buy" rating in a research note on Tuesday, June 17th. Robert W. Baird lifted their target price on shares of Spotify Technology from $700.00 to $730.00 and gave the company an "outperform" rating in a research note on Thursday, May 1st. Finally, Morgan Stanley reduced their price objective on shares of Spotify Technology from $850.00 to $800.00 and set an "overweight" rating for the company in a research note on Wednesday. Nine analysts have rated the stock with a hold rating and twenty have issued a buy rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $718.90.

Spotify Technology Trading Down 2.2%

The firm's 50-day moving average price is $701.48 and its 200 day moving average price is $621.28. The company has a market capitalization of $130.21 billion, a price-to-earnings ratio of 155.01, a PEG ratio of 1.67 and a beta of 1.68.

Spotify Technology (NYSE:SPOT - Get Free Report) last released its quarterly earnings data on Tuesday, April 29th. The company reported $1.13 earnings per share for the quarter, missing the consensus estimate of $2.29 by ($1.16). The business had revenue of $4.41 billion for the quarter, compared to analyst estimates of $4.22 billion. Spotify Technology had a return on equity of 14.62% and a net margin of 4.76%. The business's quarterly revenue was up 15.2% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.97 EPS. As a group, equities research analysts anticipate that Spotify Technology will post 10.3 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Spotify Technology

Several institutional investors have recently added to or reduced their stakes in the stock. Mpwm Advisory Solutions LLC bought a new position in Spotify Technology during the fourth quarter worth about $26,000. Tsfg LLC purchased a new stake in shares of Spotify Technology in the first quarter worth about $28,000. Copia Wealth Management purchased a new stake in shares of Spotify Technology in the fourth quarter worth about $29,000. Cornerstone Planning Group LLC lifted its holdings in shares of Spotify Technology by 512.5% in the first quarter. Cornerstone Planning Group LLC now owns 49 shares of the company's stock worth $29,000 after buying an additional 41 shares in the last quarter. Finally, North Star Investment Management Corp. lifted its holdings in shares of Spotify Technology by 52.8% in the first quarter. North Star Investment Management Corp. now owns 55 shares of the company's stock worth $30,000 after buying an additional 19 shares in the last quarter. Institutional investors own 84.09% of the company's stock.

Spotify Technology Company Profile

Spotify Technology SA, together with its subsidiaries, provides audio streaming subscription services worldwide. It operates through two segments, Premium and Ad-Supported. The Premium segment offers unlimited online and offline streaming access to its catalog of music and podcasts without commercial breaks to its subscribers.