Spotify Technology (NYSE:SPOT) Trading 3.9% Higher Following Earnings Beat

Spotify Technology S.A. (NYSE:SPOT)’s stock price was up 3.9% during mid-day trading on Wednesday after the company announced better than expected quarterly earnings. The company traded as high as $343.83 and last traded at $343.83. Approximately 677,070 shares traded hands during trading, a decline of 65% from the average daily volume of 1,957,939 shares. The stock had previously closed at $330.79.

The company reported $1.33 earnings per share for the quarter, topping analysts’ consensus estimates of $1.08 by $0.25. Spotify Technology had a return on equity of 17.48% and a net margin of 3.22%. The business had revenue of $3.81 billion for the quarter, compared to analyst estimates of $3.82 billion. During the same quarter in the previous year, the firm earned ($1.69) earnings per share. The company’s revenue was up 19.8% on a year-over-year basis.

Analysts Set New Price Targets

A number of research firms recently commented on SPOT. Jefferies Financial Group reaffirmed a “buy” rating and set a $385.00 target price (up previously from $242.00) on shares of Spotify Technology in a report on Thursday, July 11th. Benchmark reissued a “buy” rating and set a $405.00 price target on shares of Spotify Technology in a research report on Monday. Rosenblatt Securities raised their price target on shares of Spotify Technology from $396.00 to $399.00 and gave the stock a “buy” rating in a research report on Wednesday. Citigroup raised their price target on shares of Spotify Technology from $255.00 to $310.00 and gave the stock a “neutral” rating in a research report on Tuesday, May 7th. Finally, Bank of America raised their price target on shares of Spotify Technology from $370.00 to $380.00 and gave the stock a “buy” rating in a research report on Tuesday, July 2nd. One research analyst has rated the stock with a sell rating, five have assigned a hold rating and twenty-two have given a buy rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $353.15.

Institutional Investors Weigh In On Spotify Technology

A number of institutional investors have recently added to or reduced their stakes in SPOT. GQG Partners LLC acquired a new stake in Spotify Technology during the 1st quarter worth $610,040,000. Swedbank AB acquired a new stake in Spotify Technology during the 1st quarter worth $198,663,000. Norges Bank acquired a new stake in Spotify Technology during the 4th quarter worth $92,429,000. 1832 Asset Management L.P. acquired a new stake in Spotify Technology during the 4th quarter worth $83,094,000. Finally, Envestnet Asset Management Inc. boosted its stake in Spotify Technology by 327.4% during the 4th quarter. Envestnet Asset Management Inc. now owns 391,253 shares of the company’s stock worth $73,520,000 after purchasing an additional 299,700 shares during the last quarter. Institutional investors and hedge funds own 84.09% of the company’s stock.

Spotify Technology Stock Performance

The firm’s 50 day simple moving average is $310.50 and its 200-day simple moving average is $276.03. The company has a market cap of $65.48 billion, a price-to-earnings ratio of -490.99, a PEG ratio of 0.87 and a beta of 1.59.

About Spotify Technology

Spotify Technology SA, together with its subsidiaries, provides audio streaming subscription services worldwide. It operates through two segments, Premium and Ad-Supported. The Premium segment offers unlimited online and offline streaming access to its catalog of music and podcasts without commercial breaks to its subscribers.