Spotify (NYSE:SPOT) Rating Increased to Buy at Zacks Investment Research

Zacks Investment Research upgraded shares of Spotify (NYSE:SPOT) from a hold rating to a buy rating in a research note released on Saturday morning, Zacks.com reports. The brokerage currently has $170.00 price objective on the stock.

According to Zacks, “Spotify Technology S.A. provides music streaming services. The Company offers commercial free music and ad-supported services to subscribers. Spotify Technology S.A. is based in Sweden. “

SPOT has been the subject of several other research reports. Nomura reissued a buy rating and issued a $180.00 price target on shares of Spotify in a research note on Monday, January 6th. Bernstein Bank started coverage on shares of Spotify in a research report on Thursday, January 9th. They set an underperform rating and a $127.00 price objective for the company. Stifel Nicolaus reaffirmed a buy rating and set a $175.00 price objective on shares of Spotify in a research report on Monday, October 28th. Wells Fargo & Co started coverage on shares of Spotify in a research report on Tuesday, September 24th. They set an underperform rating and a $115.00 price objective for the company. Finally, Rosenblatt Securities set a $184.00 price objective on shares of Spotify and gave the stock a buy rating in a research report on Sunday, September 29th. Four equities research analysts have rated the stock with a sell rating, four have given a hold rating, twelve have assigned a buy rating and one has assigned a strong buy rating to the stock. The company has a consensus rating of Hold and a consensus price target of $157.89.

Spotify stock opened at $148.95 on Friday. The firm has a 50 day simple moving average of $150.60 and a 200-day simple moving average of $137.18. Spotify has a 1-year low of $110.57 and a 1-year high of $161.38. The company has a debt-to-equity ratio of 0.32, a current ratio of 0.81 and a quick ratio of 0.81. The stock has a market cap of $26.71 billion, a price-to-earnings ratio of -270.82 and a beta of 1.91.

Spotify (NYSE:SPOT) last posted its quarterly earnings results on Monday, October 28th. The company reported $0.36 earnings per share for the quarter, beating the consensus estimate of ($0.40) by $0.76. Spotify had a net margin of 7.32% and a return on equity of 22.12%. The business had revenue of $1.73 billion during the quarter, compared to analysts’ expectations of $1.72 billion. During the same quarter in the prior year, the company posted $0.23 EPS. The business’s revenue for the quarter was up 28.0% on a year-over-year basis. Equities analysts expect that Spotify will post -1.35 earnings per share for the current fiscal year.

Institutional investors have recently added to or reduced their stakes in the business. Chesapeake Wealth Management lifted its holdings in Spotify by 38.4% during the 3rd quarter. Chesapeake Wealth Management now owns 3,790 shares of the company’s stock worth $432,000 after buying an additional 1,051 shares in the last quarter. CNB Bank lifted its holdings in Spotify by 490.7% during the 3rd quarter. CNB Bank now owns 443 shares of the company’s stock worth $51,000 after buying an additional 368 shares in the last quarter. FNY Investment Advisers LLC acquired a new stake in Spotify during the 3rd quarter worth approximately $42,000. Skylands Capital LLC acquired a new stake in Spotify during the 3rd quarter worth approximately $299,000. Finally, California Public Employees Retirement System lifted its holdings in Spotify by 69.8% during the 3rd quarter. California Public Employees Retirement System now owns 219,900 shares of the company’s stock worth $25,069,000 after buying an additional 90,400 shares in the last quarter. Institutional investors own 49.14% of the company’s stock.

Spotify Company Profile

Spotify Technology SA, together with its subsidiaries, provides music streaming services worldwide. It operates through two segments, Premium and Ad-Supported. The Premium segment offers commercial-free music services to subscribers comprising unlimited online and offline high-quality streaming access to its catalog.

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