The stock of Spotify Technology S.A (SPOT) has seen a 7.60% increase in the past week, with a 11.19% gain in the past month, and a 31.66% flourish in the past quarter. The volatility ratio for the week is 3.04%, and the volatility levels for the past 30 days are at 3.22% for SPOT. The simple moving average for the past 20 days is 6.54% for SPOT’s stock, with a 37.23% simple moving average for the past 200 days.
Is It Worth Investing in Spotify Technology S.A (NYSE: SPOT) Right Now?
Spotify Technology S.A (NYSE: SPOT) has a higher price-to-earnings ratio of 135.28x compared to its average ratio. SPOT has 36-month beta value of 1.62. Analysts have mixed views on the stock, with 18 analysts rating it as a “buy,” 8 as “overweight,” 10 as “hold,” and 1 as “sell.”
The public float for SPOT is 141.76M, and currently, short sellers hold a 4.78% ratio of that float. The average trading volume of SPOT on January 22, 2025 was 2.57M shares.
SPOT) stock’s latest price update
Spotify Technology S.A (NYSE: SPOT) has seen a rise in its stock price by 2.33 in relation to its previous close of 487.51. However, the company has experienced a 7.60% gain in its stock price over the last five trading sessions. seekingalpha.com reported 2025-01-22 that Spotify’s shares have surged 31.99% since October, driven by AI optimization and enhanced user experiences, boosting demand and premium subscriptions. The new creator incentive program, offering 50% ad revenue share, is a game changer, attracting more high-quality content to Spotify. Despite market pessimism, I believe Spotify’s Q4 earnings will exceed expectations due to these creator innovations and strong user engagement metrics.
Analysts’ Opinion of SPOT
Pivotal Research Group, on the other hand, stated in their research note that they expect to see SPOT reach a price target of $565, previously predicting the price at $510. The rating they have provided for SPOT stocks is “Buy” according to the report published on November 13th, 2024.
Pivotal Research Group gave a rating of “Buy” to SPOT, setting the target price at $510 in the report published on September 19th of the previous year.
SPOT Trading at 6.75% 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 -1.51% of loss for the given period.
Volatility was left at 3.22%, however, over the last 30 days, the volatility rate increased by 3.04%, as shares surge +10.11% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +27.85% upper at present.
During the last 5 trading sessions, SPOT rose by +7.87%, which changed the moving average for the period of 200-days by +68.97% in comparison to the 20-day moving average, which settled at $468.27. In addition, Spotify Technology S.A saw 11.50% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at SPOT starting from Daniel Ek, who proposed sale 60,000 shares at the price of $463.93 back on Jan 08 ’25. After this action, Daniel Ek now owns shares of Spotify Technology S.A, valued at $27,835,800 using the latest closing price.
Daniel Ek, the Director and Chief Executive O of Spotify Technology S.A, proposed sale 60,000 shares at $462.00 during a trade that took place back on Dec 23 ’24, which means that Daniel Ek is holding shares at $27,720,000 based on the most recent closing price.
Stock Fundamentals for SPOT
Current profitability levels for the company are sitting at:
- 0.05 for the present operating margin
- 0.29 for the gross margin
The net margin for Spotify Technology S.A stands at 0.05. The total capital return value is set at 0.13. Equity return is now at value 20.53, with 7.70 for asset returns.
Based on Spotify Technology S.A (SPOT), the company’s capital structure generated 0.28 points at debt to capital in total, while cash flow to debt ratio is standing at 1.02. The debt to equity ratio resting at 0.39. The interest coverage ratio of the stock is 5.38.
Currently, EBITDA for the company is -298.0 million with net debt to EBITDA at -3.07. When we switch over and look at the enterprise to sales, we see a ratio of 6.01. The receivables turnover for the company is 19.46for trailing twelve months and the total asset turnover is 1.43. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.71.
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.
