TD Cowen Reaffirms “Hold” Rating for Spotify Technology (NYSE:SPOT)

Spotify Technology (NYSE:SPOT)‘s stock had its “hold” rating reissued by equities researchers at TD Cowen in a report released on Friday, Benzinga reports. They presently have a $525.00 price target on the stock. TD Cowen‘s price objective points to a potential downside of 5.60% from the stock’s current price.

A number of other research firms also recently commented on SPOT. Cantor Fitzgerald lifted their target price on Spotify Technology from $490.00 to $550.00 and gave the company a “neutral” rating in a research report on Friday. KeyCorp cut their price objective on Spotify Technology from $680.00 to $660.00 and set an “overweight” rating on the stock in a report on Thursday, October 1st. Piper Sandler assumed coverage on Spotify Technology in a report on Thursday, October 8th. They issued a “neutral” rating and a $540.00 price objective on the stock. Rosenblatt Securities reiterated a “neutral” rating and issued a $527.00 price objective on shares of Spotify Technology in a report on Tuesday, October 20th. Finally, Morgan Stanley boosted their price objective on Spotify Technology from $610.00 to $640.00 and gave the company an “overweight” rating in a report on Monday, August 3rd. One analyst has rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Spotify Technology presently has an average rating of “Moderate Buy” and an average target price of $620.07.

Spotify Technology Stock Down 2.8%

NYSE:SPOT traded down $16.21 on Friday, reaching $556.15. The company’s stock had a trading volume of 1,538,828 shares, compared to its average volume of 2,201,000. Spotify Technology has a 12-month low of $405.00 and a 12-month high of $673.16. The firm has a market cap of $114.50 billion, a price-to-earnings ratio of 36.87, a price-to-earnings-growth ratio of 1.81 and a beta of 1.61. The stock has a 50 day moving average price of $528.52 and a 200 day moving average price of $497.88.

Spotify Technology (NYSE:SPOT) last posted its earnings results on Thursday, October 22nd. The company reported $2.81 EPS for the quarter, missing analysts’ consensus estimates of $3.18 by ($0.37). Spotify Technology had a net margin of 15.74% and a return on equity of 35.64%. The business had revenue of $5.63 billion during the quarter, compared to analysts’ expectations of $5.64 billion. During the same quarter in the prior year, the firm earned $3.28 EPS. Spotify Technology’s revenue for the quarter was up 16.3% compared to the same quarter last year. Equities research analysts expect that Spotify Technology will post 13.62 EPS for the current fiscal year.

Insider Buying and Selling at Spotify Technology

In related news, CEO Gustav Söderström sold 20,913 shares of the business’s stock in a transaction on Monday, September 14th. The stock was sold at an average price of $544.19, for a total transaction of $11,380,645.47. Following the completion of the transaction, the chief executive officer directly owned 20,025 shares of the company’s stock, valued at $10,897,404.75. The trade was a 51.08% decrease in their position. The transaction 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 business’s 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 directly owned 66,773 shares of the company’s stock, valued at $33,526,723.30. The trade was a 7.53% 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 a total of 68,092 shares of company stock valued at $35,762,410 over the last three months. 0.40% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Pin Oak Investment Advisors Inc. acquired a new position in shares of Spotify Technology during the 2nd quarter worth about $27,000. Portus Wealth Advisors LLC acquired a new position in shares of Spotify Technology during the 1st quarter worth about $32,000. Whipplewood Advisors LLC boosted its position in shares of Spotify Technology by 423.1% during the 1st quarter. Whipplewood Advisors LLC now owns 68 shares of the company’s stock worth $33,000 after acquiring an additional 55 shares in the last quarter. Palladiem LLC acquired a new position in shares of Spotify Technology during the 1st quarter worth about $34,000. Finally, Tsfg LLC boosted its position in shares of Spotify Technology by 39.7% during the 2nd quarter. Tsfg LLC now owns 81 shares of the company’s stock worth $37,000 after acquiring an additional 23 shares in the last quarter. 84.09% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Spotify Technology

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

• Positive Sentiment: Spotify said it has removed approximately 50 million AI-generated or spam tracks from recommendations. The move could improve user experience, protect music discovery quality, and help address concerns about low-quality AI content flooding the platform. Spotify Has Taken 50 Million AI Slop, Spam Tracks Out of Recommendations
• Positive Sentiment: Jefferies raised its Spotify price target to $620 from $600 and described the platform as “highly defensible” against artificial-intelligence competition. The view supports the argument that Spotify’s scale, user data, brand, and ecosystem can help it withstand AI-related disruption, although future results must validate that thesis. Spotify Is Highly Defensible Against AI, Says Jefferies
• Positive Sentiment: Management’s latest earnings call emphasized margin-fueled growth, suggesting that profitability and operating leverage remain important parts of the investment case following the company’s recent quarterly update. Spotify Earnings Call Highlights Margin-Fueled Growth
• Negative Sentiment: Phillip Securities lowered Spotify from “strong-buy” to “moderate buy.” Although the revised rating remains constructive, the downgrade may pressure the stock by signaling reduced conviction or limited upside after its strong run. Spotify Technology Shares Fall After Phillip Securities Downgrade
• Negative Sentiment: Spotify slipped alongside Netflix and Disney as investors questioned streaming engagement despite Netflix’s earnings beat. The sector-wide selling reflects concern that user attention, content spending, and engagement may not support current valuations. Netflix Drops as Engagement Worries Spread Across Streaming Stocks

About Spotify Technology

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.