Piper Sandler started coverage on shares of Spotify Technology (NYSE:SPOT – Free Report) in a report released on Thursday morning, Marketbeat Ratings reports. The brokerage issued a neutral rating and a $540.00 price target on the stock.
A number of other analysts also recently commented on SPOT. KeyCorp dropped their price objective on Spotify Technology from $680.00 to $660.00 and set an “overweight” rating for the company in a report on Thursday, October 1st. UBS Group cut their target price on Spotify Technology from $690.00 to $675.00 and set a “buy” rating on the stock in a research report on Monday, October 5th. Guggenheim reiterated a “buy” rating and issued a $565.00 target price on shares of Spotify Technology in a report on Wednesday, August 5th. Wells Fargo & Company lowered their price target on Spotify Technology from $600.00 to $570.00 and set an “overweight” rating for the company in a research report on Thursday, July 9th. Finally, Benchmark dropped their price target on Spotify Technology from $695.00 to $650.00 and set a “buy” rating for the company in a research note on Wednesday, July 22nd. One research analyst has rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating and seven have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $611.68.
Read Our Latest Stock Report on Spotify Technology
Spotify Technology Stock Performance
Spotify Technology (NYSE:SPOT – Get Free Report) last released its earnings results on Tuesday, August 4th. The company reported $3.03 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $3.16 by ($0.13). The company had revenue of $5.45 billion during the quarter, compared to analysts’ expectations of $5.47 billion. Spotify Technology had a net margin of 18.44% and a return on equity of 41.39%. Spotify Technology’s revenue for the quarter was up 13.9% compared to the same quarter last year. During the same quarter in the previous year, the firm posted ($0.42) earnings per share. As a group, sell-side analysts expect that Spotify Technology will post 13.81 earnings per share for the current fiscal year.
Insider Activity
In other news, CEO Gustav Söderström sold 20,913 shares of the stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $544.19, for a total value of $11,380,645.47. Following the completion of the sale, the chief executive officer owned 20,025 shares in the company, valued at approximately $10,897,404.75. This trade represents a 51.08% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Alex Norström sold 5,436 shares of the firm’s stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $502.10, for a total value of $2,729,415.60. Following the sale, the chief executive officer owned 66,773 shares in the company, valued at approximately $33,526,723.30. The trade was a 7.53% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 47,182 shares of company stock worth $24,677,392 over the last three months. 0.40% of the stock is currently owned by corporate insiders.
Institutional Trading of Spotify Technology
A number of hedge funds have recently made changes to their positions in the company. Tsfg LLC grew its holdings in Spotify Technology by 39.7% during the 2nd quarter. Tsfg LLC now owns 81 shares of the company’s stock worth $37,000 after acquiring an additional 23 shares during the last quarter. Carl P. Sherr & Co. LLC raised its stake in shares of Spotify Technology by 0.7% during the first quarter. Carl P. Sherr & Co. LLC now owns 4,138 shares of the company’s stock valued at $2,007,000 after acquiring an additional 27 shares during the last quarter. Simplify Asset Management Inc. raised its stake in shares of Spotify Technology by 3.1% during the first quarter. Simplify Asset Management Inc. now owns 1,074 shares of the company’s stock valued at $521,000 after acquiring an additional 32 shares during the last quarter. Arkadios Wealth Advisors lifted its holdings in shares of Spotify Technology by 7.5% during the first quarter. Arkadios Wealth Advisors now owns 474 shares of the company’s stock worth $230,000 after purchasing an additional 33 shares during the period. Finally, Simplicity Wealth LLC lifted its holdings in shares of Spotify Technology by 4.4% during the first quarter. Simplicity Wealth LLC now owns 860 shares of the company’s stock worth $417,000 after purchasing an additional 36 shares during the period. Hedge funds and other institutional investors own 84.09% of the company’s stock.
Spotify Technology News Roundup
Here are the key news stories impacting Spotify Technology this week:
- Positive Sentiment: Joe Rogan renewed his Spotify partnership. Spotify signed a new multiyear licensing and advertising-sales agreement with “The Joe Rogan Experience,” reportedly valued at approximately $250 million. The show remains the leading podcast in U.S. listenership, helping Spotify retain a major audience driver and valuable advertising inventory. Joe Rogan renews multimillion-dollar podcast deal with Spotify
- Positive Sentiment: Spotify is exploring a new enterprise technology opportunity. The company launched technology.spotify.com to make some of its internally developed tools and technology available to outside development teams. The initiative could create a new revenue stream and strengthen Spotify’s position as a technology platform, although its financial contribution is not yet established. Spotify Opens Tech Resources to Outside Development Teams
- Neutral Sentiment: Piper Sandler initiated coverage with a Neutral rating and a $540 price target. The target implies limited additional upside from recent trading levels, suggesting the analyst sees Spotify’s valuation as broadly balanced against its growth prospects. Thursday’s Top Wall Street Analyst Research Calls
- Negative Sentiment: The Rogan agreement adds a significant ongoing content expense. While retaining Spotify’s most-listened-to podcast may support engagement and advertising, the reported nine-figure commitment increases costs and could pressure returns if audience growth or monetization does not justify the payment.
Spotify Technology Company Profile
Spotify Technology SA is a global audio streaming company that operates the Spotify platform. The service provides users with access to a broad catalog of music, podcasts and audiobooks, along with personalized recommendations, playlists and other discovery features.
Spotify offers a subscription-based Premium service with enhanced listening features, as well as an ad-supported service available at no direct cost to users. The company generates revenue primarily through Premium subscriptions and advertising, including audio, video and display advertising delivered across its platform.
Founded in 2006 by Daniel Ek and Martin Lorentzon, Spotify is headquartered in Stockholm, Sweden, and serves listeners, creators, advertisers and other partners across markets worldwide.
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