Spotify Technology (NYSE: SPOT) has seen its stock price target revised by Guggenheim, which lowered its estimate from $800.00 to $750.00. This adjustment was detailed in a research report released on November 4, 2023. Despite this downward revision, Guggenheim maintains a “buy” rating on the stock, suggesting a potential upside of approximately 32.13% from its previous closing price.
Several other research firms have also provided updates regarding Spotify’s stock. Erste Group Bank downgraded its rating from “buy” to “hold” on the same day. In contrast, Benchmark raised its price target for Spotify from $800.00 to $860.00 and reaffirmed a “buy” rating in a report issued on November 5, 2023. Meanwhile, JPMorgan Chase & Co. increased its price objective from $740.00 to $805.00 and assigned an “overweight” rating on September 29, 2023.
Additionally, DZ Bank upgraded Spotify from a “hold” rating to a “strong buy” on November 4, 2023. Overall, the sentiment among analysts appears positive, with two analysts rating the stock as a strong buy, twenty-three issuing a buy rating, and nine giving it a hold rating. According to MarketBeat.com, Spotify currently has a consensus rating of “Moderate Buy” and an average target price of $758.57.
Recent Earnings Performance
Spotify Technology recently reported its quarterly earnings on November 4, 2023. The company announced earnings per share (EPS) of $3.83, surpassing analysts’ expectations of $1.87 by $1.96. The report highlighted a return on equity of 21.68% and a net margin of 8.46%. Spotify’s revenue for the quarter reached $5.01 billion, significantly exceeding the forecast of $4.23 billion. Compared to the same period last year, revenue increased by 7.1%.
Sell-side analysts predict that Spotify will achieve an EPS of 10.3 for the current fiscal year, reflecting continued growth and operational success.
Institutional Investment Activity
Recent trading activity among institutional investors indicates a robust interest in Spotify Technology. Joel Isaacson & Co. LLC reported a 1.0% increase in its stake during the second quarter, bringing its total to 1,551 shares valued at approximately $1.19 million. Similarly, Ignite Planners LLC enhanced its position by 2.4%, holding 637 shares worth about $489,000.
Stonekeep Investments LLC and Moody National Bank Trust Division also increased their stakes by 2.1% and 0.5%, respectively. Quadcap Wealth Management LLC expanded its position by 5.7% in the third quarter, now owning 295 shares valued at $206,000. Collectively, hedge funds and institutional investors now hold approximately 84.09% of Spotify’s stock.
Spotify Technology, founded in 2006 by Daniel Ek and Martin Lorentzon, is well-known for its digital audio streaming services. It offers an ad-supported free tier and a paid Spotify Premium subscription, allowing users to access a wide range of music, podcasts, and other audio content. As the company continues to navigate a competitive landscape, analysts and investors alike are closely monitoring its financial performance and market position.
