Spotify Technology (NYSE:SPOT) has seen its price target adjusted downward by Guggenheim from $800.00 to $750.00, according to a report released on Thursday. The firm maintains a “buy” rating on the stock, which suggests a potential upside of approximately 32.13% from the stock’s previous close.
Several other research firms have also recently provided updates on Spotify’s stock. On December 5, 2023, Erste Group Bank downgraded its rating from “buy” to “hold.” Conversely, Benchmark raised its price target from $800.00 to $860.00, reaffirming a “buy” rating in a report dated November 5, 2023. Additionally, Argus initiated coverage with a “buy” rating and a price target of $845.00 on September 29, 2023.
JPMorgan Chase & Co. also increased its price target for Spotify from $740.00 to $805.00, designating the stock with an “overweight” rating on the same date. DZ Bank raised its rating from “hold” to “strong-buy” on November 4, 2023. Currently, two analysts rate the stock as a strong buy, while twenty-three have issued a buy rating and nine maintain a hold rating. According to MarketBeat.com, Spotify holds a consensus rating of “Moderate Buy” with an average target price of $758.57.
Spotify’s Quarterly Performance Surpasses Expectations
Spotify Technology recently reported its quarterly earnings on November 4, 2023, revealing earnings per share (EPS) of $3.83, exceeding analysts’ expectations of $1.87 by $1.96. The company achieved a return on equity of 21.68% and a net margin of 8.46%. Revenue for the quarter reached $5.01 billion, significantly surpassing forecasts of $4.23 billion. This figure marked a 7.1% increase compared to the same quarter last year, when Spotify reported an EPS of $1.45.
Looking ahead, sell-side analysts predict that Spotify will achieve an EPS of 10.3 for the current fiscal year.
Institutional Investors Adjust Positions
Recently, various hedge funds and institutional investors have altered their stakes in Spotify Technology. Joel Isaacson & Co. LLC increased its ownership by 1.0% during the second quarter, now holding 1,551 shares valued at about $1.19 million. Ignite Planners LLC also raised its position by 2.4%, owning 637 shares worth $489,000 after acquiring an additional 15 shares.
Stonekeep Investments LLC boosted its stake by 2.1%, now holding 773 shares valued at $593,000. Moody National Bank Trust Division increased its ownership by 0.5%, owning 2,931 shares valued at $2.25 million. Quadcap Wealth Management LLC saw a 5.7% increase in its position, now holding 295 shares valued at $206,000. Notably, institutional investors collectively own 84.09% of Spotify’s stock.
As Spotify Technology continues to navigate market challenges, these adjustments by analysts and institutional investors reflect ongoing interest in the company’s performance and potential for future growth.
