Spotify Technology S.A. [SPOT] Stock trading around $249.99 per share: What’s Next?

Spotify Technology S.A. [NYSE: SPOT] stock went on a downward path that fall over -8.83% on Tuesday, amounting to a one-week price increase of more than 5.69%. The company report on November 10, 2020 that Spotify Announces Strategic Acquisition of Podcast Technology Leader, Megaphone.

Spotify Technology S.A. (NYSE:SPOT), the world’s most popular audio streaming subscription service, today announced that the company has entered into a definitive agreement to acquire Megaphone, one of the world’s most innovative podcast advertising and publishing platforms. Together, Spotify and Megaphone will help advertisers and podcast publishers realize the full potential of podcasts. The two companies will achieve this through the power of the Megaphone Targeted Marketplace and by making Streaming Ad Insertion available to third-party podcast publishers for the first time.

With this acquisition, Spotify continues to deliver against its goal to become the world’s leading audio platform and focus on growing audio monetization across the industry. The acquisition follows Spotify’s launch of Streaming Ad Insertion, an innovative podcast ad technology that delivers the intimacy and quality of traditional podcast ads with the precision and transparency of modern day digital marketing.

Over the last 12 months, SPOT stock rose by 70.49%. The one-year Spotify Technology S.A. stock forecast points to a potential upside of 8.31. The average equity rating for SPOT stock is currently 2.60, trading closer to a bullish pattern in the stock market.

The market cap for the stock reached $43.49 billion, with 188.84 million shares outstanding and 131.65 million shares in the current float. Compared to the average trading volume of 1.56M shares, SPOT stock reached a trading volume of 2369034 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Guru’s Opinion on Spotify Technology S.A. [SPOT]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for SPOT shares is $272.64 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on SPOT stock is a recommendation set at 2.60. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

CFRA have made an estimate for Spotify Technology S.A. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on November 04, 2020. The new note on the price target was released on September 28, 2020, representing the official price target for Spotify Technology S.A. stock. On September 10, 2020, analysts increased their price target for SPOT shares from 215 to 315.

The Average True Range (ATR) for Spotify Technology S.A. is set at 14.85, with the Price to Sales ratio for SPOT stock in the period of the last 12 months amounting to 4.86. The Price to Book ratio for the last quarter was 16.19, with the Price to Cash per share for the same quarter was set at 12.92. Price to Free Cash Flow for SPOT in the course of the last twelve months was 131.42 with Quick ratio for the last quarter at 0.90.

SPOT Stock Performance Analysis:

Spotify Technology S.A. [SPOT] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 5.69. With this latest performance, SPOT shares dropped by -0.58% in over the last four-week period, additionally plugging by 67.80% over the last 6 months – not to mention a rise of 70.49% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for SPOT stock in for the last two-week period is set at 46.89, with the RSI for the last a single of trading hit 44.71, and the three-weeks RSI is set at 47.72 for Spotify Technology S.A. [SPOT]. The present Moving Average for the last 50 days of trading for this stock 252.91, while it was recorded at 259.19 for the last single week of trading, and 204.47 for the last 200 days.

Insight into Spotify Technology S.A. Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and Spotify Technology S.A. [SPOT] shares currently have an operating margin of -0.80 and a Gross Margin at +25.25. Spotify Technology S.A.’s Net Margin is presently recorded at -2.75.

Return on Total Capital for SPOT is now -2.25, given the latest momentum, and Return on Invested Capital for the company is -7.74. Return on Equity for this stock declined to -8.90, with Return on Assets sitting at -3.89. When it comes to the capital structure of this company, Spotify Technology S.A. [SPOT] has a Total Debt to Total Equity ratio set at 30.54. Additionally, SPOT Total Debt to Total Capital is recorded at 23.39, with Total Debt to Total Assets ending up at 12.14. Long-Term Debt to Equity for the company is recorded at 30.54, with the Long-Term Debt to Total Capital now at 23.39.

Receivables Turnover for the company is 16.54 with a Total Asset Turnover recorded at a value of 1.41.Spotify Technology S.A.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.90 and a Current Ratio set at 0.90.

SPOT Stock EPS

With the latest financial reports released by the company, Spotify Technology S.A. posted -1.14/share EPS, while the average EPS was predicted by analysts to be reported at -0.22/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -418.20%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for SPOT.

Spotify Technology S.A. [SPOT] Insider Position Details

There are presently around $27,827 million, or 61.00% of SPOT stock, in the hands of institutional investors. The top three institutional holders of SPOT stocks are: BAILLIE GIFFORD & CO with ownership of 22,096,060, which is approximately 1.931% of the company’s market cap and around 29.48% of the total institutional ownership; MORGAN STANLEY, holding 17,385,299 shares of the stock with an approximate value of $4.35 billion in SPOT stocks shares; and PRICE T ROWE ASSOCIATES INC /MD/, currently with $3.65 billion in SPOT stock with ownership of nearly 7.543% of the company’s market capitalization.

Positions in Spotify Technology S.A. stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 278 institutional holders increased their position in Spotify Technology S.A. [NYSE:SPOT] by around 11,891,231 shares. Additionally, 216 investors decreased positions by around 11,514,412 shares, while 64 investors held positions by with 87,907,165 shares. The mentioned changes placed institutional holdings at 111,312,808 shares, according to the latest SEC report filing. SPOT stock had 124 new institutional investments in for a total of 2,711,793 shares, while 65 institutional investors sold positions of 1,965,273 shares during the same period.

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