Spotify Technology (NYSE:SPOT – Free Report) had its target price hoisted by Wells Fargo & Company from $570.00 to $660.00 in a research report report published on Friday morning,Benzinga reports. Wells Fargo & Company currently has an overweight rating on the stock.
Other research analysts have also recently issued research reports about the company. UBS Group lowered their price objective on Spotify Technology from $690.00 to $675.00 and set a “buy” rating for the company in a research note on Monday, October 5th. Piper Sandler initiated coverage on Spotify Technology in a research note on Thursday, October 8th. They issued a “neutral” rating and a $540.00 target price on the stock. Benchmark reduced their price target on Spotify Technology from $695.00 to $650.00 and set a “buy” rating for the company in a report on Wednesday, July 22nd. Barclays raised their price target on Spotify Technology from $565.00 to $650.00 and gave the company an “overweight” rating in a report on Friday. Finally, Phillip Securities raised Spotify Technology to a “buy” rating and set a $650.00 price target for the company in a research report on Tuesday, August 11th. One investment analyst has rated the stock with a Strong Buy rating, twenty-three have given a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, Spotify Technology currently has an average rating of “Moderate Buy” and an average target price of $620.07.
Get Our Latest Research Report on SPOT
Spotify Technology Stock Performance
SPOT stock opened at $583.84 on Friday. The firm has a 50 day moving average price of $526.60 and a 200-day moving average price of $497.97. Spotify Technology has a 52-week low of $405.00 and a 52-week high of $676.67. The firm has a market capitalization of $120.20 billion, a price-to-earnings ratio of 38.71, a PEG ratio of 1.81 and a beta of 1.61.
Spotify Technology (NYSE:SPOT – Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The company reported $3.03 earnings per share for the quarter, missing the consensus estimate of $3.16 by ($0.13). Spotify Technology had a return on equity of 35.64% and a net margin of 15.74%. The company had revenue of $5.45 billion during the quarter, compared to analysts’ expectations of $5.47 billion. During the same quarter in the previous year, the company earned ($0.42) EPS. The business’s quarterly revenue was up 13.9% on a year-over-year basis. As a group, sell-side analysts forecast that Spotify Technology will post 13.62 earnings per share for the current fiscal year.
Insider Buying and Selling
In related news, CEO Alex Norström sold 5,436 shares of the business’s stock in a transaction that occurred on 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 completion of the transaction, the chief executive officer directly owned 66,773 shares in the company, valued at $33,526,723.30. The trade was a 7.53% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Gustav Söderström sold 20,910 shares of the business’s stock in a transaction that occurred on Monday, October 12th. The stock was sold at an average price of $530.13, for a total transaction of $11,085,018.30. Following the completion of the transaction, the chief executive officer owned 19,908 shares of the company’s stock, valued at approximately $10,553,828.04. The trade was a 51.23% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders have sold 68,092 shares of company stock worth $35,762,410. Corporate insiders own 0.40% of the company’s stock.
Hedge Funds Weigh In On Spotify Technology
Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Montanova Capital LLC increased its holdings in shares of Spotify Technology by 9,154.5% in the 2nd quarter. Montanova Capital LLC now owns 101,800 shares of the company’s stock worth $46,739,000 after purchasing an additional 100,700 shares in the last quarter. Manning & Napier Advisors LLC purchased a new position in shares of Spotify Technology in the second quarter worth $100,867,000. Plato Investment Management Ltd purchased a new position in shares of Spotify Technology in the second quarter worth $1,363,000. HS Management Partners LLC bought a new position in shares of Spotify Technology during the second quarter valued at $13,404,000. Finally, Ally Financial Inc. lifted its holdings in shares of Spotify Technology by 100.0% during the second quarter. Ally Financial Inc. now owns 7,000 shares of the company’s stock valued at $3,214,000 after purchasing an additional 3,500 shares in the last quarter. 84.09% of the stock is owned by institutional investors.
Key Stories Impacting Spotify Technology
Here are the key news stories impacting Spotify Technology this week:
- Positive Sentiment: Spotify reported 306 million premium subscribers in the third quarter, up 9% year over year and 1 million above its guidance. Monthly active users rose 11% to 788 million, with growth across all regions. Spotify Stock Jumps as Subscriber Growth Beats Expectations
- Positive Sentiment: Revenue increased roughly 16% year over year to about €4.97 billion, while gross margin expanded 140 basis points to 33% and operating income exceeded company guidance. Spotify expects fourth-quarter operating profit above Wall Street expectations and projects revenue of approximately €6.0 billion. Spotify forecasts fourth-quarter profit above estimates on AI bets
- Positive Sentiment: Management highlighted AI-powered personalization, including its “taste model,” as a way to increase listening, reduce churn and support pricing power. It also expects moderating expenses and continued margin expansion, with long-term targets of more than 20% operating margin and 35%–40% gross margin by 2030. Spotify Soars After Earnings as the Company Touts AI Benefits and Moderating Costs
- Positive Sentiment: Several analysts raised their targets following the results. Morgan Stanley and JPMorgan lifted targets to $700 with overweight ratings, while Wells Fargo, Barclays, Oppenheimer and Guggenheim also raised targets to $650–$660. Spotify Analysts Raise Their Forecasts Following Q3 Earnings
- Neutral Sentiment: Spotify’s headline results were mixed: quarterly EPS of roughly $2.78–$2.85 missed consensus near $3.10–$3.18, while revenue was slightly below estimates. Piper Sandler maintained a neutral rating with a $580 target, and Cantor Fitzgerald maintained neutral at $550.
- Negative Sentiment: TD Cowen reaffirmed a hold rating with a $525 price target, and some newly raised targets remain below the current market valuation, signaling concerns that much of the subscriber and AI optimism may already be reflected in SPOT shares.
Spotify Technology Company Profile
Spotify Technology SA is an audio streaming company that operates the Spotify platform, offering users access to music, podcasts and audiobooks through internet-connected devices. Its catalog includes licensed recordings from music labels and artists, as well as podcasts and other audio content from creators and publishers.
Spotify provides both an ad-supported service and subscription-based Premium plans. Premium subscribers generally receive ad-free listening and additional features, while the advertising-supported service allows users to access content without a paid subscription.
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