Spotify Technology (NYSE:SPOT) Stock Price Expected to Rise, Rosenblatt Securities Analyst Says

Key Points

• Rosenblatt Securities raised its price target on Spotify from $500 to $534 while keeping a neutral rating, implying about 8.83% upside from the prior close.
• Other analysts remain generally positive: Spotify’s consensus rating is still “Moderate Buy,” with a consensus target price of $647.08, even though some firms recently cut their targets.
• Spotify’s latest earnings beat expectations, with Q1 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) had its target price raised by research analysts at Rosenblatt Securities from $500.00 to $534.00 in a research report issued on Friday,Benzinga reports. The firm currently has a "neutral" rating on the stock. Rosenblatt Securities' price objective indicates a potential upside of 8.83% from the company's previous close.

Several other brokerages have also weighed in on SPOT. Daiwa Securities Group assumed coverage on Spotify Technology in a research report on Thursday, March 26th. They issued an "outperform" rating and a $535.00 target price on the stock. Arete Research upgraded Spotify Technology from a "neutral" rating to a "buy" rating and set a $586.00 price target for the company in a research note on Thursday, February 26th. Cantor Fitzgerald decreased their price target on Spotify Technology from $525.00 to $430.00 and set a "neutral" rating for the company in a research note on Wednesday, April 29th. Canaccord Genuity Group decreased their price target on Spotify Technology from $750.00 to $720.00 and set a "buy" rating for the company in a research note on Wednesday, April 29th. Finally, Pivotal Research decreased their price target on Spotify Technology from $420.00 to $400.00 and set a "hold" rating for the company in a research note on Wednesday, April 29th. Two research analysts have rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat, Spotify Technology currently has a consensus rating of "Moderate Buy" and a consensus target price of $647.08.

Spotify Technology Price Performance

Shares of SPOT stock opened at $490.66 on Friday. Spotify Technology has a fifty-two week low of $405.00 and a fifty-two week high of $785.00. The stock's 50-day moving average is $479.71 and its two-hundred day moving average is $523.90. The firm has a market cap of $101.02 billion, a P/E ratio of 39.10, a PEG ratio of 1.05 and a beta of 1.55.

Spotify Technology (NYSE:SPOT - Get Free Report) last issued its 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 for the quarter, compared to analyst estimates of $5.23 billion. During the same period in the prior year, the firm posted $1.07 EPS. The business's revenue was up 8.2% compared to the same quarter last year. As a group, research analysts expect that Spotify Technology will post 14.87 EPS for the current year.

Insider Activity at Spotify Technology

In related news, CEO Gustav Soderstrom sold 20,833 shares of the stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $430.72, for a total transaction of $8,973,189.76. Following the completion of the sale, the chief executive officer owned 20,492 shares in the company, valued at $8,826,314.24. This represents a 50.41% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Alex Norstrom sold 5,436 shares of the stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $479.51, for a total value of $2,606,616.36. Following the sale, the chief executive officer owned 69,989 shares of the company's stock, valued at approximately $33,560,425.39. The trade was a 7.21% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 47,102 shares of company stock valued at $21,444,648. 0.40% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Spotify Technology

Large investors have recently added to or reduced their stakes in the company. Greykasell Wealth Strategies Inc. raised its holdings in Spotify Technology by 3,800.0% in the 3rd quarter. Greykasell Wealth Strategies Inc. now owns 39 shares of the company's stock valued at $27,000 after acquiring an additional 38 shares in the last quarter. KERR FINANCIAL PLANNING Corp acquired a new position in Spotify Technology in the 3rd quarter valued at approximately $26,000. Westfuller Advisors LLC acquired a new position in Spotify Technology in the 3rd quarter valued at approximately $29,000. JPL Wealth Management LLC acquired a new position in Spotify Technology in the 3rd quarter valued at approximately $35,000. Finally, Chilton Capital Management LLC raised its holdings in Spotify Technology by 183.3% in the 3rd quarter. Chilton Capital Management LLC now owns 51 shares of the company's stock valued at $36,000 after acquiring an additional 33 shares in the last quarter. Institutional investors and hedge funds own 84.09% of the company's stock.

Trending Headlines about Spotify Technology

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

• Positive Sentiment: Spotify outlined upbeat long-term targets, including mid-teens annual revenue growth and gross margins of 35% to 40% by 2030, reinforcing the case for continued earnings and cash flow expansion. Spotify stock pops on guidance at first investor day since 2022
• Positive Sentiment: The company announced new AI-driven products, including tools for premium users to create covers and remixes, plus AI-powered podcast and audiobook creation features, which could open new revenue streams and deepen subscriber engagement. Spotify adds AI-powered Q&A and briefing generation features to podcasts
• Positive Sentiment: Spotify also struck a licensing deal with Universal Music Group for responsible AI-generated covers and remixes, which supports creator partnerships while giving the platform a differentiated product offering. Spotify strikes deal with Universal Music to let premium users create AI covers, remixes
• Positive Sentiment: Additional Investor Day announcements, such as reserving concert tickets for top fans, could improve user retention and increase premium value. Spotify Will Set Aside Concert Tickets for Artists' Superfans
• Neutral Sentiment: Media coverage on Spotify’s 20th anniversary and podcast strategy is more of a brand and product update than a clear near-term financial catalyst. Spotify 20th Anniversary: What Impact Did Podcasts Have On The Company?
• Negative Sentiment: One report noted that Spotify may face higher costs in Canada due to rule changes, which could pressure margins if broader regulatory cost headwinds emerge. Netflix, Spotify to face higher costs as Canada changes rules
• Negative Sentiment: Pomerantz LLP said it is investigating claims on behalf of Spotify investors, a legal overhang that can weigh on sentiment even if no wrongdoing is proven. INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Spotify Technology S.A. - SPOT

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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