Spotify Technology S.A. (NYSE:SPOT) finished Wednesday with an addition of $0.72 to close at $139.09, an upside of 0.52 percent. An average of 1,788,380 shares of common stock have been traded in the last five days. There was a fall of -$7.42 in the past week, and it reached a new high 31 times over the past 12 months. The last 20 days have seen an average of 3,250,780 shares traded, while the 50-day average volume stands at 2,156,306.
SPOT stock has decreased by -13.38% in the last month. The company shares reached their 1-month lowest point of $137.22 on 08/08/23. With the stock rallying to its 52-week high on 07/19/23, shares of the company touched a low of $69.29 and a high of $182.00 in 52 weeks. It has reached a new high 44 times so far this year and achieved 76.17% or $60.14 in price. In spite of this, the price is down -23.58% from the 52-week high.
Valuation Metrics
Spotify Technology S.A. (SPOT) stock’s beta is 1.74. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 2.01, the price-to-book (PB) ratio at 12.03, and the price-to-cash flow ratio at 853.80.
Financial Health
The quick ratio of Spotify Technology S.A. for the three months ended June 29 was 1.20, and the current ratio was 1.20, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.82 and a total debt to equity ratio of 0.82 for the quarter ending June 29. Its gross profit as reported stood at $3.08 billion compared to revenue of $12.36 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Spotify Technology S.A.’s return on assets was -12.80%.
Earnings Surprise
For the three-month period that ended June 29, Spotify Technology S.A. had $5.6 million in cash. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of -$481.6 million in the quarter, while revenues were grew 92.09%. The analyst consensus anticipated Spotify Technology S.A.’s latest quarter earnings to come in at -$0.7 per share, but it turned out to be -$1.71, a -144.30% surprise. For the quarter, EBITDA amounted to -$220.6 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Spotify Technology S.A. (SPOT) price momentum. RSI 9-day as of the close on 09 August was 30.46%, suggesting the stock is Neutral, with historical volatility in this time frame at 26.93%.
As of today, SPOT’s price is $141.80 -5.06% or -$7.42 from its 5-day moving average. SPOT is currently trading -16.10% lower than its 20-day SMA and +7.65% higher than its 100-day SMA. However, the stock’s current price level is -7.46% below the SMA50 and +58.53% above the SMA200.
The stochastic %K and %D were 4.58% and 7.50%, respectively, and the average true range (ATR) was 5.79. With the 14-day stochastic at 4.41% and the average true range at 5.98, the RSI (14) stands at 35.29%. The stock has reached -5.11 on the 9-day MACD Oscillator while the 14-day reading was at -8.31.
Analyst Ratings
Deutsche Bank upgraded Spotify Technology S.A. (NYSE: SPOT) to a a Buy rating in its most recent analyst report. Previously, the stock was rated as a Hold. The consensus rating for Spotify Technology S.A. (SPOT) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell SPOT, while 13 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 5 analysts, while 17 others rate it as a “buy”.
What is SPOT’s price target for the next 12 months?
Analysts predict a range of price targets between $98.69 and $226.36, with a median target of $158.45. Taking a look at these predictions, the average price target given by analysts for Spotify Technology S.A. (SPOT) stock is $154.95.
