Spotify Technology (NYSE:SPOT) Shares Gap Up - Time to Buy?

Key Points

• Spotify Technology shares experienced a significant price jump at the market open, moving from a previous close of $627.15 to an opening of $661.00, and last trading at $661.55.
• Equities analysts have given mixed ratings on Spotify, with a range of price targets; notably, Sanford C. Bernstein increased its target from $825.00 to $840.00, reflecting a general sentiment of a "Moderate Buy."
• Despite reporting a loss of ($0.42) EPS for the last quarter, Spotify's revenue rose to $4.94 billion, surpassing analyst estimates and showing a 10.1% increase compared to the previous year.

Spotify Technology (NYSE:SPOT - Get Free Report) gapped up before the market opened on Monday . The stock had previously closed at $627.15, but opened at $661.00. Spotify Technology shares last traded at $661.55, with a volume of 1,110,827 shares trading hands.

Wall Street Analysts Forecast Growth

SPOT has been the subject of several recent analyst reports. Deutsche Bank Aktiengesellschaft upped their target price on shares of Spotify Technology from $700.00 to $775.00 and gave the stock a "buy" rating in a report on Wednesday, July 23rd. Cantor Fitzgerald raised their target price on shares of Spotify Technology from $610.00 to $640.00 and gave the stock a "neutral" rating in a research report on Wednesday, June 18th. Phillip Securities upgraded shares of Spotify Technology from a "moderate sell" rating to a "hold" rating in a research note on Monday. Sanford C. Bernstein boosted their target price on shares of Spotify Technology from $825.00 to $840.00 and gave the company an "outperform" rating in a research report on Tuesday, July 8th. Finally, KeyCorp cut their target price on shares of Spotify Technology from $860.00 to $830.00 and set an "overweight" rating for the company in a research note on Wednesday, July 30th. Ten research analysts have rated the stock with a hold rating and twenty have given a buy rating to the company. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $718.90.

Spotify Technology Stock Performance

The company has a market capitalization of $135.52 billion, a P/E ratio of 160.74, a PEG ratio of 2.85 and a beta of 1.69. The stock has a 50 day moving average price of $700.69 and a 200 day moving average price of $626.81.

Spotify Technology (NYSE:SPOT - Get Free Report) last announced its earnings results on Tuesday, July 29th. The company reported ($0.42) earnings per share (EPS) for the quarter, missing the consensus estimate of $2.00 by ($2.42). The firm had revenue of $4.94 billion during the quarter, compared to analysts' expectations of $4.29 billion. Spotify Technology had a return on equity of 13.67% and a net margin of 4.76%. The company's revenue for the quarter was up 10.1% on a year-over-year basis. During the same period in the previous year, the business posted $1.33 earnings per share. As a group, sell-side analysts expect that Spotify Technology will post 10.3 earnings per share for the current year.

Hedge Funds Weigh In On Spotify Technology

Hedge funds and other institutional investors have recently made changes to their positions in the company. Mpwm Advisory Solutions LLC purchased a new position in shares of Spotify Technology during the fourth quarter worth $26,000. Tsfg LLC purchased a new stake in Spotify Technology during the 1st quarter worth about $28,000. Copia Wealth Management purchased a new stake in Spotify Technology during the 4th quarter worth about $29,000. Cornerstone Planning Group LLC increased its position in shares of Spotify Technology by 512.5% during the first quarter. Cornerstone Planning Group LLC now owns 49 shares of the company's stock worth $29,000 after purchasing an additional 41 shares in the last quarter. Finally, North Star Investment Management Corp. boosted its holdings in Spotify Technology by 52.8% in the 1st quarter. North Star Investment Management Corp. now owns 55 shares of the company's stock valued at $30,000 after purchasing an additional 19 shares in the last quarter. Hedge funds and other institutional investors own 84.09% of the company's stock.

About Spotify Technology

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.