The stock price of Spotify Technology S.A. (NYSE: SPOT) has plunged by -2.53 when compared to previous closing price of 309.07, but the company has seen a 11.74% gain in its stock price over the last five trading sessions. Zacks Investment Research reported 2024-04-09 that When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock’s price, but are they really important?
Is It Worth Investing in Spotify Technology S.A. (NYSE: SPOT) Right Now?
SPOT has 36-month beta value of 1.62. Analysts have mixed views on the stock, with 3 analysts rating it as a “buy,” 3 as “overweight,” 2 as “hold,” and 0 as “sell.”
The public float for SPOT is 138.48M, and currently, short sellers hold a 1.28% ratio of that float. The average trading volume of SPOT on April 09, 2024 was 1.96M shares.
SPOT’s Market Performance
SPOT’s stock has seen a 11.74% increase for the week, with a 16.13% rise in the past month and a 52.72% gain in the past quarter. The volatility ratio for the week is 3.82%, and the volatility levels for the past 30 days are at 3.09% for Spotify Technology S.A. The simple moving average for the last 20 days is 12.26% for SPOT stock, with a simple moving average of 59.48% for the last 200 days.
Analysts’ Opinion of SPOT
Many brokerage firms have already submitted their reports for SPOT stocks, with JP Morgan repeating the rating for SPOT by listing it as a “Overweight.” The predicted price for SPOT in the upcoming period, according to JP Morgan is $320 based on the research report published on April 08, 2024 of the current year 2024.
Pivotal Research Group, on the other hand, stated in their research note that they expect to see SPOT reach a price target of $390, previously predicting the price at $330. The rating they have provided for SPOT stocks is “Buy” according to the report published on April 05th, 2024.
HSBC Securities gave a rating of “Buy” to SPOT, setting the target price at $310 in the report published on March 27th of the current year.
SPOT Trading at 18.90% from the 50-Day Moving Average
After a stumble in the market that brought SPOT to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -3.81% of loss for the given period.
Volatility was left at 3.09%, however, over the last 30 days, the volatility rate increased by 3.82%, as shares surge +18.18% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +40.33% upper at present.
During the last 5 trading sessions, SPOT rose by +11.55%, which changed the moving average for the period of 200-days by +89.03% in comparison to the 20-day moving average, which settled at $270.66. In addition, Spotify Technology S.A. saw 60.31% in overturn over a single year, with a tendency to cut further gains.
Stock Fundamentals for SPOT
Current profitability levels for the company are sitting at:
- -0.02 for the present operating margin
- 0.26 for the gross margin
The net margin for Spotify Technology S.A. stands at -0.04. The total capital return value is set at -0.07. Equity return is now at value -21.48, with -6.62 for asset returns.
Based on Spotify Technology S.A. (SPOT), the company’s capital structure generated 0.64 points at debt to capital in total, while cash flow to debt ratio is standing at 0.15. The debt to equity ratio resting at 1.77. The interest coverage ratio of the stock is -2.68.
Currently, EBITDA for the company is -146.0 million with net debt to EBITDA at 25.19. When we switch over and look at the enterprise to sales, we see a ratio of 3.88. The receivables turnover for the company is 15.42for trailing twelve months and the total asset turnover is 1.62. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.29.
Conclusion
To put it simply, Spotify Technology S.A. (SPOT) has had a better performance in recent times. Analysts have a bullish opinion on the stock, with some rating it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
