Research analysts at Guggenheim have revised their price target for Spotify Technology (NYSE: SPOT) from $800.00 to $750.00. This adjustment was disclosed in a research report issued on November 4, 2023. Despite this reduction, Guggenheim maintains a “buy” rating on the stock, indicating a potential upside of 32.13% based on the stock’s previous closing price.
Several other firms have provided insights into Spotify’s stock performance. Erste Group Bank recently downgraded its rating from “buy” to “hold” on December 5, 2023. In contrast, Benchmark raised its price target from $800.00 to $860.00 while affirming a “buy” rating on November 5, 2023. Additionally, Argus initiated coverage with a “buy” rating and a target price of $845.00 on September 29, 2023. JPMorgan Chase & Co. also increased its price objective from $740.00 to $805.00, assigning an “overweight” rating on the same date. Moreover, DZ Bank upgraded its assessment from “hold” to “strong-buy” on November 4, 2023.
The current consensus rating for Spotify, as reported by MarketBeat.com, stands at “Moderate Buy.” The average target price across analysts is approximately $758.57. Analysts have rated the stock with two “strong buy” ratings, twenty-three “buy” ratings, and nine “hold” ratings.
Spotify’s Recent Earnings Performance
On November 4, 2023, Spotify announced its quarterly earnings, reporting an EPS of $3.83. This figure surpassed analysts’ expectations of $1.87 by $1.96. The company recorded a return on equity of 21.68% and a net margin of 8.46%. Spotify generated $5.01 billion in revenue for the quarter, exceeding predictions of $4.23 billion. In comparison to the same quarter a year earlier, revenue increased by 7.1%.
Institutional Investment Trends
Recent trading activity indicates a shift among institutional investors regarding Spotify shares. Joel Isaacson & Co. LLC increased its stake by 1.0% during the second quarter, now holding 1,551 shares valued at approximately $1.19 million. Ignite Planners LLC also raised its position by 2.4%, owning 637 shares worth $489,000. Stonekeep Investments LLC and Moody National Bank Trust Division similarly boosted their stakes by 2.1% and 0.5%, respectively.
Quadcap Wealth Management LLC reported a 5.7% increase in their position during the third quarter, now holding 295 shares valued at $206,000. Notably, hedge funds and institutional investors collectively own 84.09% of Spotify’s stock.
Spotify Technology, founded in Sweden in 2006 by Daniel Ek and Martin Lorentzon, is renowned for its digital audio streaming service. The platform features a diverse array of music and spoken-word content, offering both a free ad-supported tier and a paid Spotify Premium subscription.
