Spotify Technology (NYSE:SPOT) Stock Has Average Price Target of $592.75 According to Brokerages

Spotify Technology (NYSE:SPOT) has been given a consensus rating of “Moderate Buy” by the thirty-one ratings firms that are presently covering the stock, Marketbeat reports. Seven analysts have rated the stock with a hold rating, twenty-three have given a buy rating and one has issued a strong buy rating on the company. The average 1 year price objective among brokerages that have covered the stock in the last year is $611.68.

Several brokerages have issued reports on SPOT. Cantor Fitzgerald lifted their target price on shares of Spotify Technology from $510.00 to $530.00 and gave the company a “neutral” rating in a research report on Wednesday, August 5th. Rosenblatt Securities decreased their price target on shares of Spotify Technology from $531.00 to $527.00 and set a “neutral” rating on the stock in a report on Wednesday, August 5th. UBS Group lowered their price objective on shares of Spotify Technology from $690.00 to $675.00 and set a “buy” rating on the stock in a research report on Monday, October 5th. Piper Sandler began coverage on shares of Spotify Technology in a research report on Thursday. They set a “neutral” rating and a $540.00 price objective on the stock. Finally, Wall Street Zen downgraded shares of Spotify Technology from a “buy” rating to a “hold” rating in a report on Saturday, July 25th.

Insiders Place Their Bets

In related news, CEO Alex Norström 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 transaction, the chief executive officer owned 66,773 shares of the company’s stock, valued at $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 Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Gustav Söderström sold 20,913 shares of the firm’s stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $544.19, for a total value of $11,380,645.47. Following the sale, the chief executive officer owned 20,025 shares in the company, valued at $10,897,404.75. The trade was a 51.08% decrease in their position. 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. In the last three months, insiders sold 47,182 shares of company stock worth $24,677,392. 0.40% of the stock is owned by insiders.

Hedge Funds Weigh In On Spotify Technology

Hedge funds and other institutional investors have recently modified their holdings of the company. Pin Oak Investment Advisors Inc. purchased a new stake in Spotify Technology in the second quarter worth about $27,000. Portus Wealth Advisors LLC bought a new stake in Spotify Technology during the 1st quarter valued at approximately $32,000. Whipplewood Advisors LLC boosted its position in Spotify Technology by 423.1% during the 1st quarter. Whipplewood Advisors LLC now owns 68 shares of the company’s stock valued at $33,000 after acquiring an additional 55 shares in the last quarter. Palladiem LLC purchased a new position in shares of Spotify Technology during the 1st quarter worth approximately $34,000. Finally, Osbon Capital Management LLC purchased a new position in shares of Spotify Technology during the 4th quarter worth approximately $35,000. 84.09% of the stock is currently owned by hedge funds and other institutional investors.

Spotify Technology Trading Up 0.1%

Shares of SPOT opened at $529.52 on Wednesday. Spotify Technology has a 12-month low of $405.00 and a 12-month high of $700.12. The company has a market cap of $109.02 billion, a PE ratio of 32.97, a price-to-earnings-growth ratio of 1.62 and a beta of 1.61. The stock has a 50-day moving average price of $517.62 and a 200-day moving average price of $493.91.

Spotify Technology (NYSE:SPOT) last posted its quarterly earnings data 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). 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 firm’s revenue for the quarter was up 13.9% on a year-over-year basis. During the same quarter last year, the company posted ($0.42) earnings per share. As a group, analysts predict that Spotify Technology will post 13.81 earnings per share for the current year.

Key Spotify Technology News

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.

About Spotify Technology

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.