Spotify Technology (NYSE:SPOT) Receives Buy Rating from Guggenheim

Spotify Technology (NYSE:SPOT)‘s stock had its “buy” rating reaffirmed by equities research analysts at Guggenheim in a report released on Wednesday,Benzinga reports. They presently have a $565.00 price target on the stock. Guggenheim’s target price indicates a potential upside of 16.98% from the company’s previous close.

Several other analysts have also recently issued reports on the company. Benchmark dropped their target price on Spotify Technology from $695.00 to $650.00 and set a “buy” rating on the stock in a research report on Wednesday, July 22nd. Rosenblatt Securities lowered their target price on shares of Spotify Technology from $531.00 to $527.00 and set a “neutral” rating for the company in a research note on Wednesday. JPMorgan Chase & Co. upped their price target on Spotify Technology from $600.00 to $650.00 and gave the stock an “overweight” rating in a research report on Friday, May 22nd. Pivotal Research lowered their price objective on Spotify Technology from $420.00 to $400.00 and set a “hold” rating for the company in a research report on Wednesday, April 29th. Finally, Weiss Ratings cut Spotify Technology from a “hold (c+)” rating to a “hold (c)” rating in a research note on Tuesday, June 23rd. Two analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $629.55.

Spotify Technology Trading Down 0.7%

SPOT opened at $483.00 on Wednesday. The business’s fifty day simple moving average is $484.53 and its 200-day simple moving average is $485.46. The company has a market capitalization of $99.44 billion, a price-to-earnings ratio of 38.49, a PEG ratio of 1.21 and a beta of 1.58. Spotify Technology has a 12-month low of $405.00 and a 12-month high of $748.30.

Insiders Place Their Bets

In other news, Director Sven Hans Martin Lorentzon sold 35,380 shares of Spotify Technology stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $525.73, for a total transaction of $18,600,327.40. Following the completion of the transaction, the director directly owned 6,383 shares of the company’s stock, valued at $3,355,734.59. The trade was a 84.72% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Alex Norstrom sold 5,436 shares of the company’s stock in a transaction dated Monday, July 6th. The stock was sold at an average price of $480.86, for a total transaction of $2,613,954.96. Following the completion of the transaction, the chief executive officer owned 67,582 shares of the company’s stock, valued at approximately $32,497,480.52. This trade represents a 7.44% 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 quarter, insiders have sold 90,609 shares of company stock worth $45,784,363. Corporate insiders own 0.40% of the company’s stock.

Institutional Investors Weigh In On Spotify Technology

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Sivia Capital Partners LLC acquired a new position in shares of Spotify Technology during the 2nd quarter worth approximately $312,000. Jump Financial LLC grew its position in Spotify Technology by 5.2% in the second quarter. Jump Financial LLC now owns 1,132 shares of the company’s stock worth $869,000 after acquiring an additional 56 shares during the period. Cary Street Partners Financial LLC purchased a new position in shares of Spotify Technology during the 2nd quarter worth $178,000. NewEdge Advisors LLC lifted its position in Spotify Technology by 36.9% in the second quarter. NewEdge Advisors LLC now owns 12,650 shares of the company’s stock valued at $9,707,000 after buying an additional 3,412 shares during the last quarter. Finally, Glenview Trust co acquired a new position in Spotify Technology in the second quarter valued at about $298,000. Institutional investors and hedge funds own 84.09% of the company’s stock.

Spotify Technology News Summary

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

• Positive Sentiment: Spotify surpassed 300 million Premium subscribers for the first time, while monthly active users rose 12% year over year to 777 million. The milestone reinforces the company’s scale and supports its long-term pricing, advertising and engagement opportunities. Spotify now has over 300M subscribers
• Positive Sentiment: Second-quarter revenue increased approximately 14% year over year to €4.78 billion, and Spotify swung from a year-earlier loss to roughly €545 million in net income. The company also reported record gross-margin performance, highlighting operating leverage as the business expands. Spotify tops 300 million premium subscribers as profit surges
• Positive Sentiment: Spotify expanded its planned AI-powered remix and cover product through a licensing agreement with Merlin, which represents more than 30,000 independent labels and distributors. The opt-in model is intended to provide artist credit and compensation while creating a potential new paid feature. Spotify adds Merlin to its AI music remix and covers effort
• Neutral Sentiment: Management issued a strong third-quarter revenue outlook of about €5.00 billion, with projected operating income of approximately €670 million and gross margin of 32.9%. However, the guidance also calls for 788 million monthly active users, implying slower growth than the latest quarter.
• Negative Sentiment: Second-quarter earnings per share came in below analyst expectations, and revenue was slightly under consensus. The shortfall overshadowed the subscriber milestone and raised concerns that Spotify’s higher marketing investment and spending on AI features could pressure near-term profitability. Spotify forecasts weak profit as user growth slows
• Negative Sentiment: User growth is slowing in Spotify’s key North American and European markets, while the third-quarter profit forecast fell below Wall Street expectations. That outlook, rather than subscriber totals alone, appears to be driving the negative investor reaction. Spotify Stock Falls After Music Streamer Misses Earnings Goal

Spotify Technology Company Profile

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.