Spotify Technology (NYSE:SPOT) Trading Up 4.5% - What's Next?

Key Points

• Spotify shares rose 4.5% to about $514.45, above both their 50-day and 200-day moving averages, although trading volume was 86% below the daily average.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and a $609.05 price target. Recent targets range from $530 to $650, despite some analysts downgrading their ratings.
• Spotify narrowly missed quarterly expectations, reporting $2.98 in EPS versus $3.16 expected and $5.45 billion in revenue versus $5.47 billion forecast, while revenue still grew 13.9% year over year. Insiders sold $59.1 million of stock over the past 90 days, while institutional investors own 84.09% of shares.

Shares of Spotify Technology (NYSE:SPOT - Get Free Report) were up 4.5% on Tuesday . The company traded as high as $516.22 and last traded at $514.4540. 339,595 shares were traded during trading, a decline of 86% from the average daily volume of 2,371,430 shares. The stock had previously closed at $492.47.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on the company. Citizens Jmp increased their target price on Spotify Technology from $600.00 to $625.00 and gave the stock a "market outperform" rating in a research report on Friday, May 22nd. Benchmark reduced their price target on Spotify Technology from $695.00 to $650.00 and set a "buy" rating on the stock in a research note on Wednesday, July 22nd. Cantor Fitzgerald increased their price objective on Spotify Technology from $510.00 to $530.00 and gave the stock a "neutral" rating in a report on Wednesday, August 5th. Weiss Ratings lowered Spotify Technology from a "hold (c+)" rating to a "hold (c)" rating in a research report on Tuesday, June 23rd. Finally, Wall Street Zen cut shares of Spotify Technology from a "buy" rating to a "hold" rating in a report on Saturday, July 25th. Two analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $609.05.

Spotify Technology Price Performance

The stock's 50 day simple moving average is $483.26 and its two-hundred day simple moving average is $484.68. The firm has a market cap of $107.50 billion, a P/E ratio of 32.47, a P/E/G ratio of 1.26 and a beta of 1.58.

Spotify Technology (NYSE:SPOT - Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The company reported $2.98 EPS for the quarter, missing analysts' consensus estimates of $3.16 by ($0.18). The company had revenue of $5.45 billion during the quarter, compared to the consensus estimate of $5.47 billion. Spotify Technology had a return on equity of 41.39% and a net margin of 18.44%.The business's revenue for the quarter was up 13.9% compared to the same quarter last year. During the same period in the prior year, the firm earned ($0.42) earnings per share. Equities research analysts anticipate that Spotify Technology will post 14.3 earnings per share for the current year.

Insiders Place Their Bets

In other news, CEO Alex Norstrom sold 5,436 shares of the stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $502.10, for a total value of $2,729,415.60. Following the sale, the chief executive officer directly owned 66,773 shares of the company's stock, valued at approximately $33,526,723.30. This represents a 7.53% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Thomas O. Staggs sold 5,477 shares of the firm's stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $526.00, for a total value of $2,880,902.00. Following the transaction, the director owned 3,619 shares of the company's stock, valued at $1,903,594. The trade was a 60.21% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 116,878 shares of company stock valued at $59,081,110. Company insiders own 0.40% of the company's stock.

Institutional Trading of Spotify Technology

Institutional investors have recently bought and sold shares of the company. Norges Bank bought a new position in shares of Spotify Technology in the fourth quarter worth approximately $711,460,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its position in shares of Spotify Technology by 1,382.3% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,247,182 shares of the company's stock valued at $724,251,000 after acquiring an additional 1,163,045 shares in the last quarter. Coatue Management LLC increased its position in shares of Spotify Technology by 35.9% during the fourth quarter. Coatue Management LLC now owns 2,450,881 shares of the company's stock valued at $1,423,251,000 after acquiring an additional 647,708 shares in the last quarter. National Pension Service purchased a new position in Spotify Technology in the 4th quarter worth approximately $316,278,000. Finally, Swedbank AB raised its holdings in Spotify Technology by 37.9% in the 4th quarter. Swedbank AB now owns 1,616,321 shares of the company's stock worth $938,614,000 after acquiring an additional 444,162 shares during the last quarter. 84.09% of the stock is owned by hedge funds and other institutional investors.

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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