Spotify Technology (NYSE:SPOT) Stock Rated Neutral in New Coverage at Piper Sandler

Equities researchers at Piper Sandler began coverage on shares of Spotify Technology (NYSE:SPOT) in a research note issued to investors on Thursday, Benzinga reports. The firm set a “neutral” rating and a $540.00 price target on the stock. Piper Sandler’s target price would suggest a potential upside of 5.17% from the company’s previous close.

Other research analysts have also issued reports about the company. Wall Street Zen lowered Spotify Technology from a “buy” rating to a “hold” rating in a research report on Saturday, July 25th. Wells Fargo & Company decreased their price target on Spotify Technology from $600.00 to $570.00 and set an “overweight” rating on the stock in a report on Thursday, July 9th. UBS Group dropped their price objective on Spotify Technology from $690.00 to $675.00 and set a “buy” rating for the company in a report on Monday. Guggenheim reaffirmed a “buy” rating and issued a $565.00 target price on shares of Spotify Technology in a research note on Wednesday, August 5th. Finally, Cantor Fitzgerald boosted their price target on shares of Spotify Technology from $510.00 to $530.00 and gave the stock a “neutral” rating in a research note on Wednesday, August 5th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and seven have assigned a Hold rating to the company. According to data from MarketBeat.com, Spotify Technology currently has an average rating of “Moderate Buy” and an average price target of $590.24.

Spotify Technology Stock Up 5.2%

Shares of NYSE:SPOT opened at $513.43 on Thursday. The firm has a market cap of $105.71 billion, a P/E ratio of 31.97, a P/E/G ratio of 1.49 and a beta of 1.61. Spotify Technology has a 12 month low of $405.00 and a 12 month high of $700.12. The company’s 50-day moving average price is $516.94 and its two-hundred day moving average price is $493.29.

Spotify Technology (NYSE:SPOT) last announced 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). 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 quarter in the previous year, the company posted ($0.42) earnings per share. Spotify Technology’s revenue for the quarter was up 13.9% on a year-over-year basis. As a group, equities analysts predict that Spotify Technology will post 13.85 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Gustav Söderström sold 20,913 shares of Spotify Technology stock in a transaction on Monday, September 14th. The shares were sold at an average price of $544.19, for a total transaction of $11,380,645.47. Following the transaction, the chief executive officer directly owned 20,025 shares of the company’s stock, valued at $10,897,404.75. This trade represents a 51.08% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 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 on Monday, August 3rd. The shares were sold at an average price of $502.10, for a total transaction of $2,729,415.60. Following the completion of the sale, the chief executive officer owned 66,773 shares of the company’s stock, valued at approximately $33,526,723.30. This 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. Over the last three months, insiders have sold 47,182 shares of company stock worth $24,677,392. Insiders own 0.40% of the company’s stock.

Institutional Investors Weigh In On Spotify Technology

A number of hedge funds have recently modified their holdings of the business. Janus Henderson Group PLC grew its position in shares of Spotify Technology by 20.1% in the 1st 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 stake 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 valued at $766,527,000 after buying an additional 319,300 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in shares of Spotify Technology by 1,382.3% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,247,182 shares of the company’s stock valued at $724,251,000 after buying an additional 1,163,045 shares during the period. Bamco Inc. NY increased its position in shares of Spotify Technology by 0.9% during the fourth quarter. Bamco Inc. NY now owns 997,291 shares of the company’s stock worth $579,137,000 after acquiring an additional 8,596 shares in the last quarter. Finally, Artisan Partners Limited Partnership increased its position in shares of Spotify Technology by 3.6% during the fourth quarter. Artisan Partners Limited Partnership now owns 974,087 shares of the company’s stock worth $565,662,000 after acquiring an additional 33,630 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: Audiobooks expand substantially: Spotify plans to make its audiobook service available in more than 180 markets by the end of 2026, up from 22 currently. The rollout will include roughly 350,000 titles in more than 120 languages, increasing Spotify’s addressable market and creating additional subscription and engagement opportunities. Spotify expands audiobooks to over 180 markets
• Positive Sentiment: India launch adds growth potential: Spotify’s audiobook service is scheduled to launch in India on November 12, including Audiobooks+ options. India’s large population and expanding digital-media market could support long-term user and revenue growth. Spotify Audiobooks Launch in India
• Neutral Sentiment: Analyst sentiment remains generally constructive: Spotify has an average “Moderate Buy” rating, and a separate Zacks report describes Wall Street analysts as optimistic. However, the reports largely review existing recommendations rather than identify a new earnings or guidance catalyst. Spotify receives Moderate Buy rating
• Neutral Sentiment: High investor attention: Spotify is among the most-watched stocks on Zacks, but the coverage offers an assessment of whether the stock is attractive rather than a material change in company fundamentals. Is Spotify worth betting on now?
• Negative Sentiment: Valuation remains a concern: A Seeking Alpha analysis argues that Spotify’s roughly $100 billion market capitalization is too high, suggesting the stock may have limited upside unless audiobook expansion and other initiatives generate stronger profits. Spotify: $100 Billion Market Cap Is Still Too Much
• Negative Sentiment: UBS lowered its expectations: UBS reduced its expectations for Spotify’s stock price, adding pressure to the valuation narrative. The reported RSU-related share sale by Chief Human Resources Officer Anna Lundstrom was for tax withholding and appears administrative rather than a discretionary bearish signal. UBS lowers expectations for Spotify

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.