Key Points
- Spotify director Thomas Staggs sold 5,477 shares on May 26 at an average price of $526 each, totaling about $2.88 million. After the sale, he held 3,619 shares, a reduction of more than 60% in his position.
- Spotify’s latest earnings beat expectations, with quarterly EPS of $4.04 versus the $3.41 consensus and revenue of $5.25 billion, up 8.2% year over year. The company also posted strong profitability metrics, including a 15.56% net margin and 35.73% return on equity.
- Wall Street remains broadly positive on Spotify, with analysts maintaining a consensus “Moderate Buy” rating and an average price target of $655.92. However, recent insider selling and a reported legal investigation add some caution to the outlook.
Spotify Technology (NYSE:SPOT - Get Free Report) Director Thomas Staggs sold 5,477 shares of Spotify Technology stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $526.00, for a total transaction of $2,880,902.00. Following the transaction, the director owned 3,619 shares in the company, valued at $1,903,594. This represents a 60.21% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink.
Spotify Technology Price Performance
Shares of Spotify Technology stock opened at $512.54 on Thursday. The company's fifty day simple moving average is $480.04 and its 200-day simple moving average is $520.86. The stock has a market capitalization of $105.52 billion, a PE ratio of 40.84, a P/E/G ratio of 1.28 and a beta of 1.55. Spotify Technology has a 1-year low of $405.00 and a 1-year high of $785.00.
Spotify Technology (NYSE:SPOT - Get Free Report) last issued its quarterly earnings results on Tuesday, April 28th. The company reported $4.04 earnings per share for the quarter, topping the consensus estimate of $3.41 by $0.63. Spotify Technology had a net margin of 15.56% and a return on equity of 35.73%. The business had revenue of $5.25 billion for the quarter, compared to analysts' expectations of $5.23 billion. During the same quarter last year, the company posted $1.07 EPS. The company's revenue was up 8.2% compared to the same quarter last year. As a group, research analysts anticipate that Spotify Technology will post 14.86 EPS for the current year.
Hedge Funds Weigh In On Spotify Technology
A number of hedge funds have recently made changes to their positions in the business. State Street Corp boosted its stake in shares of Spotify Technology by 1.9% in the fourth quarter. State Street Corp now owns 4,712,249 shares of the company's stock worth $2,736,450,000 after acquiring an additional 89,951 shares during the period. Price T Rowe Associates Inc. MD lifted its holdings in shares of Spotify Technology by 4.0% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 3,869,472 shares of the company's stock worth $2,247,042,000 after buying an additional 149,479 shares in the last quarter. Capital World Investors lifted its holdings in shares of Spotify Technology by 4.9% in the fourth quarter. Capital World Investors now owns 2,863,821 shares of the company's stock worth $1,663,024,000 after buying an additional 133,108 shares in the last quarter. Fisher Asset Management LLC lifted its holdings in shares of Spotify Technology by 2.4% in the fourth quarter. Fisher Asset Management LLC now owns 2,665,512 shares of the company's stock worth $1,547,890,000 after buying an additional 62,887 shares in the last quarter. Finally, Coatue Management LLC lifted its holdings in shares of Spotify Technology by 35.9% in the fourth quarter. Coatue Management LLC now owns 2,450,881 shares of the company's stock worth $1,423,251,000 after buying an additional 647,708 shares in the last quarter. Institutional investors own 84.09% of the company's stock.
Trending Headlines about Spotify Technology
Here are the key news stories impacting Spotify Technology this week:
- Positive Sentiment: Spotify unveiled several new AI and audio features, including narrated magazine articles, podcast clips, and AI music/remix tools with artist revenue sharing, reinforcing its push to become a broader audio platform and potentially expand engagement and monetization. Article: Spotify now lets you ‘clip' moments from your favorite podcast
- Positive Sentiment: Investor optimism was supported by Spotify’s 2030 growth targets and long-term monetization strategy, which helped fuel a bullish narrative around user growth and margin expansion. Article: Spotify Sets 2030 Growth Targets, Shares Rally
- Positive Sentiment: Cantor Fitzgerald raised its price target on Spotify, signaling improved valuation expectations even though the firm kept a neutral rating. Article: Spotify Technology price target raised by Cantor Fitzgerald
- Neutral Sentiment: Spotify’s expansion into narrated magazine articles and long-form audio content adds to its product lineup, but the immediate stock impact is unclear as investors assess adoption and monetization potential. Article: Spotify now lets you stream narrated magazine articles, too
- Negative Sentiment: Director Sven Hans Martin Lorentzon sold a large block of shares, and Director Thomas O. Staggs also reduced his stake, which can weigh on sentiment because insider selling is often viewed cautiously by investors. SEC filing for insider sale SEC filing for insider sale
- Negative Sentiment: A shareholder-law firm said it is investigating potential securities-law violations involving Spotify, creating legal overhang that may add uncertainty for the stock. Article: SPOT Investors Have Opportunity to Join Spotify Technology S.A. Fraud Investigation
Analyst Upgrades and Downgrades
Several research analysts have recently commented on the company. KeyCorp decreased their price objective on Spotify Technology from $745.00 to $680.00 and set an "overweight" rating on the stock in a research note on Wednesday, April 29th. 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 research note on Wednesday, April 29th. Benchmark reduced their price objective on shares of Spotify Technology from $760.00 to $695.00 and set a "buy" rating for the company in a research note on Wednesday, April 29th. Citizens Jmp increased their price objective on shares of Spotify Technology from $600.00 to $625.00 and gave the stock a "market outperform" rating in a research note on Friday, May 22nd. Finally, Weiss Ratings raised shares of Spotify Technology from a "hold (c)" rating to a "hold (c+)" rating in a research note on Monday, May 4th. Two analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating and six have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $655.92.
Check Out Our Latest Stock Analysis on SPOT
Spotify Technology Company Profile
(
Get Free Report)
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.
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