Spotify Technology (NYSE:SPOT) Stock Rating Lowered by Phillip Securities

Spotify Technology (NYSE:SPOT) was downgraded by investment analysts at Phillip Securities from a “strong-buy” rating to a “moderate buy” rating in a research note issued on Monday, Zacks reports.

Several other brokerages also recently commented on SPOT. Argus reaffirmed a “buy” rating and issued a $600.00 price target on shares of Spotify Technology in a research report on Thursday, August 13th. Rosenblatt Securities reissued a “neutral” rating and issued a $527.00 price objective on shares of Spotify Technology in a research report on Tuesday, October 20th. KeyCorp reduced their price objective on Spotify Technology from $680.00 to $660.00 and set an “overweight” rating for the company in a research report on Thursday, October 1st. Wall Street Zen downgraded shares of Spotify Technology from a “buy” rating to a “hold” rating in a research note on Saturday, July 25th. Finally, Piper Sandler reaffirmed a “neutral” rating and set a $580.00 target price (up from $540.00) on shares of Spotify Technology in a research report on Friday. One equities research 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 issued a Sell rating to the company’s stock. Based on data from MarketBeat, Spotify Technology currently has a consensus rating of “Moderate Buy” and an average target price of $620.07.

Spotify Technology Stock Performance

Shares of NYSE:SPOT opened at $572.69 on Monday. The company has a market cap of $117.91 billion, a P/E ratio of 37.97, a P/E/G ratio of 1.81 and a beta of 1.61. The stock’s 50-day moving average is $526.03 and its 200-day moving average is $497.95. Spotify Technology has a 52-week low of $405.00 and a 52-week high of $673.16.

Spotify Technology (NYSE:SPOT) last posted its quarterly earnings data on Thursday, October 22nd. The company reported $2.81 earnings per share for the quarter, missing the consensus estimate of $3.18 by ($0.37). Spotify Technology had a return on equity of 35.64% and a net margin of 15.74%. The business had revenue of $5.63 billion for the quarter, compared to analyst estimates of $5.64 billion. During the same period in the prior year, the firm posted $3.28 EPS. Spotify Technology’s revenue for the quarter was up 16.3% on a year-over-year basis. As a group, equities analysts predict that Spotify Technology will post 13.62 EPS for the current year.

Insider Activity

In other Spotify Technology news, CEO Gustav Söderström sold 20,910 shares of the company’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 value 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 $10,553,828.04. This represents a 51.23% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at 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 company’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 of the company’s stock, valued at approximately $33,526,723.30. This trade represents a 7.53% decrease in their position. 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 sold 68,092 shares of company stock valued at $35,762,410. 0.40% of the stock is owned by corporate insiders.

Institutional Trading of Spotify Technology

Several institutional investors have recently modified their holdings of SPOT. Janus Henderson Group PLC increased its position in shares of Spotify Technology by 20.1% during the first quarter. Janus Henderson Group PLC now owns 1,711,015 shares of the company’s stock valued at $829,641,000 after purchasing an additional 286,844 shares during the period. Tiger Global Management LLC lifted its position in Spotify Technology by 25.3% in the first quarter. Tiger Global Management LLC now owns 1,580,761 shares of the company’s stock worth $766,527,000 after purchasing an additional 319,300 shares during the period. Amundi boosted its stake in Spotify Technology by 20.0% during the first quarter. Amundi now owns 1,104,484 shares of the company’s stock worth $535,575,000 after buying an additional 183,994 shares in the last quarter. Principal Financial Group Inc. raised its stake in shares of Spotify Technology by 53.4% in the 1st quarter. Principal Financial Group Inc. now owns 989,667 shares of the company’s stock valued at $479,899,000 after buying an additional 344,471 shares in the last quarter. Finally, Sei Investments Co. raised its stake in shares of Spotify Technology by 1.8% in the 1st quarter. Sei Investments Co. now owns 749,495 shares of the company’s stock valued at $363,415,000 after buying an additional 13,381 shares in the last quarter. Institutional investors and hedge funds own 84.09% of the company’s stock.

Key Stories Impacting Spotify Technology

Here are the key news stories impacting Spotify Technology this week:

• Positive Sentiment: Jefferies raised its price target for Spotify to $620 from $600 and described the platform as “highly defensible” against artificial-intelligence competition. Several other firms, including JPMorgan, Morgan Stanley, Guggenheim, Barclays, Wells Fargo, Cantor Fitzgerald, Oppenheimer and Citizens JMP, also maintained bullish views or raised their targets. Jefferies Spotify analysis
• Positive Sentiment: Spotify’s latest quarter showed double-digit revenue growth and significant gains in users and subscribers. Management expects continued momentum in the current quarter, with guidance calling for roughly €5.2 billion in revenue and 10% user growth. Spotify earnings growth analysis
• Neutral Sentiment: Spotify retains a strong competitive position through its scale, market share and exclusive content, but investors are monitoring potential bundling pressure from Apple and YouTube Music. Piper Sandler reaffirmed a Neutral rating, highlighting a more balanced risk-reward profile. Spotify earnings and competitive outlook
• Negative Sentiment: Spotify’s quarterly results fell short of expectations, with adjusted earnings and revenue missing analyst forecasts. The company’s reported EPS of $2.81 was below the $3.18 consensus, while revenue of $5.63 billion was slightly under the $5.64 billion estimate. Spotify earnings miss
• Negative Sentiment: Engagement concerns at Netflix have spread across streaming and media stocks, weighing on Spotify despite its company-specific growth drivers. This broader risk-off move suggests investors are scrutinizing the sustainability of streaming usage and monetization. Streaming-sector selloff

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.