Spotify Technology (NYSE:SPOT) Trading Down 4.4% – Here’s Why

Spotify Technology (NYSE:SPOT)’s stock price was down 4.4% on Thursday . The stock traded as low as $524.91 and last traded at $525.5830. 715,591 shares were traded during trading, a decline of 70% from the average session volume of 2,349,447 shares. The stock had previously closed at $550.03.

Analyst Upgrades and Downgrades

SPOT has been the topic of a number of research reports. The Goldman Sachs Group decreased their price objective on Spotify Technology from $670.00 to $600.00 and set a “buy” rating on the stock in a report on Wednesday, April 29th. Argus reissued a “buy” rating and issued a $600.00 target price on shares of Spotify Technology in a research report on Thursday, August 13th. 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 research note on Wednesday, August 5th. Cantor Fitzgerald raised their price target on shares of Spotify Technology from $510.00 to $530.00 and gave the stock a “neutral” rating in a research report on Wednesday, August 5th. Finally, Pivotal Research dropped their price objective on shares of Spotify Technology from $420.00 to $400.00 and set a “hold” rating for the company in a research note on Wednesday, April 29th. Two equities research analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $609.05.

Spotify Technology Stock Performance

The company has a fifty day simple moving average of $490.90 and a two-hundred day simple moving average of $487.55. The stock has a market capitalization of $108.47 billion, a price-to-earnings ratio of 32.80, a PEG ratio of 1.35 and a beta of 1.58.

Spotify Technology (NYSE:SPOT) last released its earnings results on Tuesday, August 4th. The company reported $3.03 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.16 by ($0.13). Spotify Technology had a return on equity of 41.39% and a net margin of 18.44%.The company had revenue of $5.45 billion for the quarter, compared to analyst estimates of $5.47 billion. During the same period last year, the company posted ($0.42) earnings per share. The business’s revenue for the quarter was up 13.9% compared to the same quarter last year. As a group, equities analysts anticipate that Spotify Technology will post 14.3 earnings per share for the current year.

Insider Transactions at Spotify Technology

In other Spotify Technology news, CEO Alex Norstrom 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 transaction, the chief executive officer directly owned 66,773 shares of the company’s stock, valued at $33,526,723.30. This trade represents a 7.53% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Gustav Soderstrom sold 20,833 shares of the business’s stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $507.24, for a total transaction of $10,567,330.92. Following the completion of the transaction, the chief executive officer owned 20,142 shares of the company’s stock, valued at $10,216,828.08. The trade was a 50.84% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 73,371 shares of company stock worth $36,222,251 over the last quarter. Corporate insiders own 0.40% of the company’s stock.

Institutional Investors Weigh In On Spotify Technology

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Quadcap Wealth Management LLC boosted its position in shares of Spotify Technology by 5.7% during the 3rd quarter. Quadcap Wealth Management LLC now owns 295 shares of the company’s stock worth $206,000 after acquiring an additional 16 shares in the last quarter. Objectivity Squared LLC raised its position in shares of Spotify Technology by 0.8% during the 4th quarter. Objectivity Squared LLC now owns 2,582 shares of the company’s stock worth $1,499,000 after acquiring an additional 20 shares in the last quarter. Tsfg LLC boosted its holdings in Spotify Technology by 39.7% in the second quarter. Tsfg LLC now owns 81 shares of the company’s stock valued at $37,000 after purchasing an additional 23 shares in the last quarter. Condor Capital Management boosted its holdings in Spotify Technology by 2.6% in the fourth quarter. Condor Capital Management now owns 990 shares of the company’s stock valued at $575,000 after purchasing an additional 25 shares in the last quarter. Finally, Carl P. Sherr & Co. LLC increased its stake in Spotify Technology by 0.7% in the first quarter. Carl P. Sherr & Co. LLC now owns 4,138 shares of the company’s stock valued at $2,007,000 after purchasing an additional 27 shares during the last quarter. 84.09% of the stock is currently owned by institutional investors.

Spotify Technology Company Profile

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.