Spotify Technology (NYSE:SPOT) Stock Rating Upgraded by Wall Street Zen

Key Points

• Wall Street Zen upgraded Spotify from a hold to a buy, adding to the generally constructive analyst outlook on the stock.
• Other firms remain mostly positive, with several buy-equivalent ratings and a consensus Moderate Buy target price of about $655.92, though some price targets were recently trimmed.
• Spotify recently beat quarterly expectations, reporting $4.04 EPS versus $3.41 expected and revenue of $5.25 billion, while insider selling and a legal investigation continue to weigh on sentiment.

Spotify Technology (NYSE:SPOT - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued on Saturday.

Other analysts have also issued research reports about the company. Benchmark dropped their price objective on Spotify Technology from $760.00 to $695.00 and set a "buy" rating for the company in a research note on Wednesday, April 29th. UBS Group dropped their price objective on Spotify Technology from $760.00 to $735.00 and set a "buy" rating for the company in a research note on Thursday, April 30th. Weiss Ratings raised Spotify Technology from a "hold (c)" rating to a "hold (c+)" rating in a research note on Monday, May 4th. KeyCorp dropped their price objective on Spotify Technology from $745.00 to $680.00 and set an "overweight" rating for the company in a research note on Wednesday, April 29th. Finally, Citizens Jmp increased their price objective on Spotify Technology from $600.00 to $625.00 and gave the company a "market outperform" rating in a research note on Friday, May 22nd. Two 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 stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $655.92.

Spotify Technology Price Performance

Shares of SPOT opened at $496.41 on Friday. The firm has a market cap of $102.20 billion, a P/E ratio of 39.55, a P/E/G ratio of 1.26 and a beta of 1.55. Spotify Technology has a 1 year low of $405.00 and a 1 year high of $785.00. The stock has a 50 day simple moving average of $479.44 and a two-hundred day simple moving average of $519.98.

Spotify Technology (NYSE:SPOT - Get Free Report) last released its quarterly earnings data on Tuesday, April 28th. The company reported $4.04 earnings per share for the quarter, beating analysts' consensus estimates of $3.41 by $0.63. The firm had revenue of $5.25 billion during the quarter, compared to analyst estimates of $5.23 billion. Spotify Technology had a return on equity of 35.73% and a net margin of 15.56%.The business's quarterly revenue was up 8.2% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.07 earnings per share. On average, equities analysts anticipate that Spotify Technology will post 14.72 earnings per share for the current year.

Insider Activity at Spotify Technology

In related news, CEO Alex Norstrom sold 5,436 shares of the company's stock in a transaction that occurred on Wednesday, April 1st. The stock was sold at an average price of $479.51, for a total transaction of $2,606,616.36. Following the completion of the transaction, the chief executive officer owned 69,989 shares in the company, valued at $33,560,425.39. This represents a 7.21% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Christopher P. Marshall sold 2,650 shares of the company's stock in a transaction that occurred 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 transaction, the director owned 4,039 shares of the company's stock, valued at approximately $2,099,714.54. This represents a 39.62% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 90,609 shares of company stock valued at $44,303,507 over the last 90 days. Company insiders own 0.40% of the company's stock.

Hedge Funds Weigh In On Spotify Technology

A number of hedge funds and other institutional investors have recently made changes to their positions in SPOT. Quadcap Wealth Management LLC increased its stake in Spotify Technology by 5.7% during the third quarter. Quadcap Wealth Management LLC now owns 295 shares of the company's stock worth $206,000 after acquiring an additional 16 shares during the last quarter. Sagespring Wealth Partners LLC increased its stake in Spotify Technology by 2.9% during the fourth quarter. Sagespring Wealth Partners LLC now owns 636 shares of the company's stock worth $370,000 after acquiring an additional 18 shares during the last quarter. Ameritas Advisory Services LLC increased its stake in Spotify Technology by 7.9% during the third quarter. Ameritas Advisory Services LLC now owns 260 shares of the company's stock worth $181,000 after acquiring an additional 19 shares during the last quarter. Aprio Wealth Management LLC increased its stake in Spotify Technology by 3.1% during the third quarter. Aprio Wealth Management LLC now owns 633 shares of the company's stock worth $442,000 after acquiring an additional 19 shares during the last quarter. Finally, Petra Financial Advisors Inc. increased its stake in Spotify Technology by 1.2% during the third quarter. Petra Financial Advisors Inc. now owns 1,639 shares of the company's stock worth $1,144,000 after acquiring an additional 20 shares during the last quarter. Institutional investors own 84.09% of the company's stock.

More Spotify Technology News

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

• Positive Sentiment: Spotify’s new paid AI remix and cover tools, developed with Universal Music Group, could create a fresh revenue stream while keeping artists involved through revenue sharing. Article: Spotify, UMG Deal Sets Up Paid AI Music Remix Tool
• Positive Sentiment: The company is also expanding its platform with “Reserved by Spotify” concert-ticket access and narrated long-form audio, which could deepen user engagement and improve Premium subscriber value. Article: Spotify Tests Superfan Tickets And Narrated Articles To Deepen Engagement
• Positive Sentiment: Recent commentary highlighted that Spotify’s broader AI and audio expansion strategy is helping investors view the company as more than just a music streamer. Article: Why Spotify Technology (SPOT) Is Up 5.5% After Launching Paid AI Remixes And Superfan Tools
• Neutral Sentiment: Analysts remain generally constructive, but recent price-target changes and mixed ratings suggest the market is still weighing execution risk against long-term growth potential. Article: Spotify Technology S.A. (SPOT) Gains Attention Following AI Remix Collaboration With Universal Music Group
• Negative Sentiment: Recent insider sales by directors, including Thomas Staggs and Christopher Marshall, may pressure sentiment because investors often view heavy insider selling cautiously. SEC filing for insider sale SEC filing for insider sale
• Negative Sentiment: A shareholder law firm is investigating potential securities-law issues at Spotify, adding a legal overhang for the stock. Article: SPOT Investors Have Opportunity to Join Spotify Technology S.A. Fraud Investigation

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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