Key Points
- CEO Gustav Söderström sold 20,910 Spotify shares for approximately $11.1 million at an average price of $530.13. The sale, which reduced his holdings by 51.23%, was made to cover tax withholding on vested equity awards.
- Spotify reported quarterly EPS of $3.03, below the $3.16 consensus estimate, while revenue of $5.45 billion also slightly missed expectations. Revenue nevertheless increased 13.9% year over year, with a net margin of 18.44%.
- Wall Street maintains a generally positive view, with a consensus “Moderate Buy” rating and an average price target of $610.25, compared with the stock’s opening price of $524.00.
Spotify Technology (NYSE:SPOT - Get Free Report) CEO Gustav Söderström sold 20,910 shares of Spotify Technology 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 sale, the chief executive officer owned 19,908 shares in the company, valued at $10,553,828.04. The trade was a 51.23% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards.
Gustav Soderstrom also recently made the following trade(s):
- On Monday, September 14th, Gustav Söderström sold 20,913 shares of Spotify Technology stock. The stock was sold at an average price of $544.19, for a total transaction of $11,380,645.47.
- On Monday, August 3rd, Gustav Söderström sold 20,833 shares of Spotify Technology stock. The shares were sold at an average price of $507.24, for a total transaction of $10,567,330.92.
Spotify Technology Stock Performance
SPOT opened at $524.00 on Thursday. Spotify Technology has a fifty-two week low of $405.00 and a fifty-two week high of $696.95. The firm has a 50-day moving average of $520.20 and a 200 day moving average of $494.93. The firm has a market cap of $107.88 billion, a P/E ratio of 32.63, a PEG ratio of 1.62 and a beta of 1.61.
Spotify Technology (NYSE:SPOT - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The company reported $3.03 EPS for the quarter, missing the consensus estimate of $3.16 by ($0.13). The company had revenue of $5.45 billion during the quarter, compared to the consensus estimate of $5.47 billion. Spotify Technology had a return on equity of 41.39% and a net margin of 18.44%. The business's revenue was up 13.9% on a year-over-year basis. During the same period in the prior year, the firm posted ($0.42) EPS. Equities research analysts predict that Spotify Technology will post 13.77 earnings per share for the current fiscal year.
Wall Street Analyst Weigh In
SPOT has been the subject of several research analyst reports. Piper Sandler started coverage on shares of Spotify Technology in a research note on Thursday, October 8th. They set a "neutral" rating and a $540.00 price target for the company. Benchmark lowered their price target on shares of Spotify Technology from $695.00 to $650.00 and set a "buy" rating on the stock in a report on Wednesday, July 22nd. Guggenheim reiterated a "buy" rating and issued a $565.00 price objective on shares of Spotify Technology in a research note on Wednesday, August 5th. Morgan Stanley increased 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. Finally, Wells Fargo & Company reduced their price objective on Spotify Technology from $600.00 to $570.00 and set an "overweight" rating for the company in a report on Thursday, July 9th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-three have given a Buy rating and seven have assigned a Hold rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $610.25.
View Our Latest Research Report on Spotify Technology
Key Spotify Technology News
Here are the key news stories impacting Spotify Technology this week:
- Positive Sentiment: Spotify expanded its audiobooks business and renewed its agreement with Joe Rogan, supporting efforts to diversify beyond music streaming and strengthen user engagement. Some analysts view the stock as modestly undervalued despite its elevated valuation. Spotify Technology expands audiobooks and renews Rogan
- Positive Sentiment: The launch of Spotify’s internal software-tools business could create a new enterprise revenue stream, while closer Siri integration in iOS 27 makes it easier for iPhone users to control Spotify by voice. Spotify launches software-tools business Spotify Siri integration
- Neutral Sentiment: CEO Gustav Söderström sold approximately $11.1 million of shares to cover tax withholding tied to vested equity awards. The transaction substantially reduced his direct holdings, but its stated tax-related purpose makes it less concerning than a discretionary sale. Spotify CEO SEC filing
- Neutral Sentiment: Investment commentary highlighted Spotify’s strong profitability but questioned whether a valuation near 39 times earnings is justified. The stock has also lagged major market benchmarks over the past six months, adding to investor caution. Spotify valuation analysis
- Negative Sentiment: Erste Group Bank lowered its FY2026 EPS forecast to $13.71 from $14.07 and its FY2027 estimate to $17.16 from $17.52. The reductions reinforce concerns about earnings momentum, particularly with the shares trading at a premium valuation.
- Negative Sentiment: Reports that Spotify’s new lossless-audio feature is causing problems for many desktop users could hurt the rollout’s reception and create near-term customer-experience and support costs. Spotify lossless audio desktop-app problems
Institutional Investors Weigh In On Spotify Technology
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Cantillon Capital Management LLC bought a new position in Spotify Technology during the first quarter worth about $213,047,000. Southpoint Capital Advisors LP bought a new stake in shares of Spotify Technology in the first quarter valued at approximately $193,964,000. Principal Financial Group Inc. raised its position in shares of Spotify Technology by 53.4% in the first quarter. Principal Financial Group Inc. now owns 989,667 shares of the company's stock valued at $479,899,000 after purchasing an additional 344,471 shares during the period. Tiger Global Management LLC raised its position in shares of 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 purchasing an additional 319,300 shares during the period. Finally, Janus Henderson Group PLC lifted its stake in shares of Spotify Technology by 20.1% during the 1st quarter. Janus Henderson Group PLC now owns 1,711,015 shares of the company's stock valued at $829,641,000 after buying an additional 286,844 shares in the last quarter. 84.09% of the stock is currently owned by institutional investors.
Spotify Technology Company Profile
(
Get Free Report)
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.
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