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

Shares of Spotify Technology S.A. (NYSE:SPOT) shot up 3.9% during trading on Wednesday following a stronger than expected earnings report. The stock traded as high as $343.83 and last traded at $343.83. 677,070 shares changed hands during mid-day trading, a decline of 65% from the average session volume of 1,957,939 shares. The stock had previously closed at $330.79.

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

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on SPOT. KeyCorp lifted their target price on shares of Spotify Technology from $400.00 to $410.00 and gave the company an “overweight” rating in a research report on Wednesday, July 10th. Benchmark reiterated a “buy” rating and set a $405.00 target price on shares of Spotify Technology in a research report on Monday. Canaccord Genuity Group boosted their price objective on shares of Spotify Technology from $315.00 to $330.00 and gave the stock a “buy” rating in a report on Monday, April 22nd. Deutsche Bank Aktiengesellschaft boosted their price objective on shares of Spotify Technology from $260.00 to $340.00 and gave the stock a “buy” rating in a report on Wednesday, April 17th. Finally, DZ Bank upgraded shares of Spotify Technology from a “hold” rating to a “buy” rating and set a $375.00 price objective for the company in a report on Wednesday. One research analyst has rated the stock with a sell rating, five have issued a hold rating and twenty-two have given a buy rating to the stock. Based on data from MarketBeat.com, Spotify Technology currently has an average rating of “Moderate Buy” and an average target price of $353.15.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Clearbridge Investments LLC increased its position in Spotify Technology by 0.6% during the 1st quarter. Clearbridge Investments LLC now owns 6,892 shares of the company’s stock valued at $1,819,000 after purchasing an additional 38 shares during the period. Cigna Investments Inc. New grew its position in shares of Spotify Technology by 3.3% in the 2nd quarter. Cigna Investments Inc. New now owns 1,260 shares of the company’s stock worth $395,000 after buying an additional 40 shares during the period. Moody Lynn & Lieberson LLC grew its position in shares of Spotify Technology by 0.6% in the 2nd quarter. Moody Lynn & Lieberson LLC now owns 6,843 shares of the company’s stock worth $2,147,000 after buying an additional 40 shares during the period. Larson Financial Group LLC grew its position in shares of Spotify Technology by 86.0% in the 1st quarter. Larson Financial Group LLC now owns 93 shares of the company’s stock worth $25,000 after buying an additional 43 shares during the period. Finally, Lindbrook Capital LLC grew its position in shares of Spotify Technology by 32.3% in the 4th quarter. Lindbrook Capital LLC now owns 205 shares of the company’s stock worth $39,000 after buying an additional 50 shares during the period. 84.09% of the stock is owned by hedge funds and other institutional investors.

Spotify Technology Stock Performance

The stock’s 50-day moving average price is $310.50 and its two-hundred day moving average price is $276.03. The stock has a market capitalization of $65.48 billion, a PE ratio of -490.99, a P/E/G 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.