Spotify Technology (NYSE:SPOT) Price Target Lowered to $500.00 at Rosenblatt Securities

Spotify Technology (NYSE:SPOT) had its price target lowered by Rosenblatt Securities from $670.00 to $500.00 in a research report report published on Wednesday, Marketbeat reports. The firm currently has a buy rating on the stock.

Several other analysts also recently commented on the stock. Arete Research upgraded shares of Spotify Technology from a “neutral” rating to a “buy” rating and set a $586.00 target price for the company in a report on Thursday, February 26th. Guggenheim lowered their target price on shares of Spotify Technology from $720.00 to $600.00 and set a “buy” rating for the company in a report on Tuesday, February 24th. Cantor Fitzgerald lowered their target price on shares of Spotify Technology from $615.00 to $525.00 and set a “neutral” rating for the company in a report on Wednesday, February 11th. Daiwa Securities Group began coverage on shares of Spotify Technology in a report on Thursday, March 26th. They issued an “outperform” rating and a $535.00 target price for the company. Finally, Sanford C. Bernstein lowered their target price on shares of Spotify Technology from $830.00 to $650.00 and set an “outperform” rating for the company in a report on Wednesday, January 14th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-three have given a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $647.68.

Spotify Technology Price Performance

Shares of SPOT stock opened at $444.49 on Wednesday. The firm has a 50-day moving average of $500.58 and a 200-day moving average of $547.72. The company has a market cap of $91.51 billion, a P/E ratio of 46.11, a P/E/G ratio of 1.08 and a beta of 1.70. Spotify Technology has a one year low of $405.00 and a one year high of $785.00.

Spotify Technology (NYSE:SPOT) last announced its earnings results on Wednesday, February 11th. The company reported $5.16 EPS for the quarter, beating the consensus estimate of $3.16 by $2.00. The company had revenue of $5.32 billion during the quarter, compared to the consensus estimate of $5.14 billion. Spotify Technology had a net margin of 13.16% and a return on equity of 31.35%. The firm’s revenue for the quarter was up 6.8% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.88 earnings per share. As a group, research analysts expect that Spotify Technology will post 15.73 earnings per share for the current fiscal year.

Insider Transactions at Spotify Technology

In related news, CEO Gustav Soderstrom sold 20,833 shares of the firm’s stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $473.52, for a total transaction of $9,864,842.16. Following the completion of the sale, the chief executive officer owned 20,609 shares in the company, valued at approximately $9,758,773.68. This trade represents a 50.27% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Alex Norstrom sold 5,436 shares of the firm’s stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $479.51, for a total transaction of $2,606,616.36. Following the sale, the chief executive officer owned 69,989 shares of the company’s stock, valued at $33,560,425.39. This trade represents a 7.21% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.40% of the company’s stock.

Institutional Trading of Spotify Technology

A number of large investors have recently added to or reduced their stakes in SPOT. KERR FINANCIAL PLANNING Corp purchased a new stake in Spotify Technology during the third quarter worth about $26,000. Greykasell Wealth Strategies Inc. boosted its position in Spotify Technology by 3,800.0% during the third quarter. Greykasell Wealth Strategies Inc. now owns 39 shares of the company’s stock worth $27,000 after purchasing an additional 38 shares during the period. Westfuller Advisors LLC bought a new position in Spotify Technology during the third quarter worth about $29,000. Albion Financial Group UT boosted its position in Spotify Technology by 80.0% during the third quarter. Albion Financial Group UT now owns 45 shares of the company’s stock worth $31,000 after purchasing an additional 20 shares during the period. Finally, Portus Wealth Advisors LLC bought a new position in Spotify Technology during the first quarter worth about $32,000. Hedge funds and other institutional investors own 84.09% of the company’s stock.

More Spotify Technology News

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

• Positive Sentiment: Q1 beat on users, revenue and operating income — Spotify reported stronger-than-expected MAU and premium subscriber growth and topped EPS/revenue estimates, which supports the long-term growth story. Business Wire Q1 Release
• Positive Sentiment: Strategic content expansion — Spotify added Peloton fitness classes to Premium globally and is pushing into video/fitness content, which could diversify revenue and improve engagement/margins over time. Bloomberg: Peloton Partnership
• Positive Sentiment: Universal Music’s capital moves include a larger buyback — Universal said it will sell half its Spotify stake but also expand its buyback program to €1bn; the buyback component is supportive for shareholder value even as the stake sale raises near-term supply concerns. Yahoo: Universal Music
• Positive Sentiment: Analyst support remains in places — some firms reaffirmed buy/overweight ratings and at least one (Rosenblatt) issued a contrarian upgrade; Erste even nudged up EPS forecasts, showing disagreement among analysts about the near-term pullback.
• Neutral Sentiment: AI spending: near-term drag, possible long-term catalyst — Management’s heavy AI investments are weighing on short-term margins, but some analysts argue they could trigger a future upgrade cycle if they accelerate product/monetization. MSN: AI investments
• Neutral Sentiment: Content/labeling debate around AI-generated music — User-created tools and questions about labeling AI music are getting attention; this is a reputational/regulatory issue to watch but not an immediate earnings driver. Digital Trends: AI labeling
• Negative Sentiment: Weak Q2 guidance is the main catalyst for the recent selloff — Spotify guided Q2 operating income and premium-subscriber growth below Street expectations, which triggered sharp downside in sentiment despite the Q1 beat. Reuters: Q2 guidance
• Negative Sentiment: Ad-revenue softness and slowing growth worries — Advertiser revenue missed expectations/appears soft, raising concerns about near-term top-line momentum and valuation. MarketBeat: Ad slump
• Negative Sentiment: Broad analyst target cuts — Multiple firms trimmed price targets (Cantor Fitzgerald, Barclays, JPMorgan, Goldman, Wells Fargo, Guggenheim and others), reflecting lower near-term profit expectations and boosting selling pressure. 247WallSt: Price target cuts

About Spotify Technology

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.