Spotify Technology (NYSE:SPOT) Trading 6.4% Higher - Time to Buy?

Key Points

• Spotify Technology's stock surged by 6.4%, reaching a last traded price of $742.95, despite a significant drop in trading volume.
• Analysts have mixed views with target price adjustments: while some raised their price targets significantly, others have decreased them, indicating varying confidence in Spotify's stock.
• The company reported a loss of $0.42 per share in its last quarterly earnings, missing estimates, but demonstrated strong revenue growth with $4.94 billion, surpassing expectations.

Spotify Technology (NYSE:SPOT - Get Free Report)'s stock price shot up 6.4% on Friday . The stock traded as high as $741.00 and last traded at $742.95. 749,441 shares were traded during mid-day trading, a decline of 68% from the average session volume of 2,313,677 shares. The stock had previously closed at $698.50.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on SPOT. KeyCorp decreased 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. Guggenheim upped their price target on shares of Spotify Technology from $725.00 to $840.00 and gave the stock a "buy" rating in a research report on Wednesday, June 25th. Cantor Fitzgerald upped their price target 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. Bank of America upped their price target on shares of Spotify Technology from $700.00 to $900.00 and gave the stock a "buy" rating in a research report on Thursday, June 26th. Finally, Barclays cut their price target on Spotify Technology from $800.00 to $750.00 and set an "overweight" rating for the company in a report on Wednesday, July 30th. Ten analysts have rated the stock with a hold rating and twenty have issued a buy rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $718.90.

Spotify Technology Price Performance

The company's 50-day moving average price is $702.88 and its two-hundred day moving average price is $635.18. The company has a market capitalization of $151.15 billion, a price-to-earnings ratio of 179.30, a PEG ratio of 3.01 and a beta of 1.69.

Spotify Technology (NYSE:SPOT - Get Free Report) last posted its quarterly earnings data on Tuesday, July 29th. The company reported ($0.42) earnings per share for the quarter, missing the consensus estimate of $2.00 by ($2.42). Spotify Technology had a return on equity of 13.67% and a net margin of 4.76%. The firm had revenue of $4.94 billion for the quarter, compared to analyst estimates of $4.29 billion. During the same quarter last year, the company earned $1.33 earnings per share. The company's quarterly revenue was up 10.1% compared to the same quarter last year. On average, equities research analysts expect that Spotify Technology will post 10.3 EPS for the current fiscal year.

Institutional Trading of Spotify Technology

Several hedge funds have recently modified their holdings of SPOT. Joel Isaacson & Co. LLC raised its position in shares of Spotify Technology by 1.0% during the second quarter. Joel Isaacson & Co. LLC now owns 1,551 shares of the company's stock worth $1,190,000 after purchasing an additional 15 shares during the period. Ignite Planners LLC raised its position in shares of Spotify Technology by 2.4% during the second quarter. Ignite Planners LLC now owns 637 shares of the company's stock worth $489,000 after purchasing an additional 15 shares during the period. Hartford Investment Management Co. raised its position in shares of Spotify Technology by 1.1% during the first quarter. Hartford Investment Management Co. now owns 1,449 shares of the company's stock worth $797,000 after purchasing an additional 16 shares during the period. Stonekeep Investments LLC raised its position in shares of Spotify Technology by 2.1% during the second quarter. Stonekeep Investments LLC now owns 773 shares of the company's stock worth $593,000 after purchasing an additional 16 shares during the period. Finally, Moody National Bank Trust Division raised its position in shares of Spotify Technology by 0.5% during the second quarter. Moody National Bank Trust Division now owns 2,931 shares of the company's stock worth $2,249,000 after purchasing an additional 16 shares during the period. 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.

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