Citizens Jmp Reaffirms “Market Outperform” Rating for Spotify Technology (NYSE:SPOT)

Spotify Technology (NYSE:SPOT)‘s stock had its “market outperform” rating restated by investment analysts at Citizens Jmp in a research note issued to investors on Friday, Benzinga reports. They currently have a $625.00 target price on the stock. Citizens Jmp‘s price target would suggest a potential upside of 9.13% from the stock’s previous close.

A number of other brokerages have also recently issued reports on SPOT. Wells Fargo & Company reduced their target price on Spotify Technology from $600.00 to $570.00 and set an “overweight” rating on the stock in a report on Thursday, July 9th. Phillip Securities upgraded Spotify Technology to a “buy” rating and set a $650.00 price objective on the stock in a report on Tuesday, August 11th. Stonex Financia cut Spotify Technology from a “strong-buy” rating to a “hold” rating in a report on Wednesday, October 14th. Rosenblatt Securities reissued a “neutral” rating and issued a $527.00 target price on shares of Spotify Technology in a research report on Tuesday, October 20th. Finally, Morgan Stanley lifted their target price on Spotify Technology from $610.00 to $640.00 and gave the company an “overweight” rating in a research report on Monday, August 3rd. One equities research 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 given a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $620.07.

Spotify Technology Stock Down 2.0%

Spotify Technology stock traded down $11.53 during mid-day trading on Friday, hitting $572.69. 1,927,909 shares of the company were exchanged, compared to its average volume of 2,204,229. The business has a fifty day moving average of $526.60 and a 200 day moving average of $497.97. Spotify Technology has a 1-year low of $405.00 and a 1-year high of $673.16. The company has a market capitalization of $117.90 billion, a PE ratio of 37.97, a price-to-earnings-growth ratio of 1.81 and a beta of 1.61.

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

Insider Activity

In other news, CEO Gustav Söderström sold 20,910 shares of the firm’s stock in a transaction 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 directly owned 19,908 shares of the company’s stock, valued at $10,553,828.04. This trade represents a 51.23% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 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 Spotify Technology stock in a transaction 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 sale, the chief executive officer directly owned 66,773 shares of the company’s stock, valued at $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. In the last three months, insiders sold 68,092 shares of company stock valued at $35,762,410. Insiders own 0.40% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Pin Oak Investment Advisors Inc. purchased a new position in Spotify Technology during the 2nd quarter valued at about $27,000. Portus Wealth Advisors LLC purchased a new position in shares of Spotify Technology during the 1st quarter worth approximately $32,000. Whipplewood Advisors LLC boosted its position in shares of Spotify Technology by 423.1% in the 1st quarter. Whipplewood Advisors LLC now owns 68 shares of the company’s stock worth $33,000 after purchasing an additional 55 shares in the last quarter. Palladiem LLC bought a new stake in shares of Spotify Technology in the 1st quarter worth approximately $34,000. Finally, Tsfg LLC lifted its position in Spotify Technology by 39.7% in the 2nd quarter. Tsfg LLC now owns 81 shares of the company’s stock valued at $37,000 after acquiring an additional 23 shares in the last quarter. Hedge funds and other institutional investors 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 company as “highly defensible” against artificial-intelligence disruption. The analyst believes Spotify’s scale, user relationships and product ecosystem can protect its competitive position. Spotify Is Highly Defensible Against AI, Says Jefferies
• Positive Sentiment: Spotify’s latest quarter showed double-digit revenue growth and significant increases in users and subscribers. Management expects continued user growth in the current quarter, supporting the company’s expansion and monetization story. Is Spotify Technology SA a Buy After Its Latest Earnings Report?
• Positive Sentiment: Several Wall Street firms, including JPMorgan, Morgan Stanley, Guggenheim, Cantor Fitzgerald, Barclays and Wells Fargo, forecast further appreciation. Oppenheimer also increased its price target, while Citizens JMP maintained an Outperform rating. Analyst Forecasts for Spotify
• Neutral Sentiment: Piper Sandler reiterated its Neutral rating, highlighting a more cautious view despite generally favorable analyst coverage. Piper Sandler Reaffirms Neutral Rating
• Negative Sentiment: Spotify missed analysts’ quarterly earnings-per-share expectations and came in slightly below revenue estimates. Although revenue grew strongly year over year, the results raised questions about near-term execution and margins. Spotify Earnings: A Miss, But Long-Term Potential Remains
• Negative Sentiment: Netflix’s post-earnings decline over engagement concerns has pressured streaming and media stocks broadly, including Spotify. Investors are also monitoring bundling competition from Apple and YouTube Music. Netflix Engagement Concerns Pressure 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.