Short Interest in Spotify (NYSE:SPOT) Drops By 21.0%

Spotify (NYSE:SPOT) was the recipient of a significant decline in short interest during the month of October. As of October 31st, there was short interest totalling 4,660,000 shares, a decline of 21.0% from the September 30th total of 5,900,000 shares. Based on an average daily volume of 1,500,000 shares, the short-interest ratio is presently 3.1 days. Approximately 4.2% of the shares of the stock are short sold.

Several institutional investors and hedge funds have recently added to or reduced their stakes in SPOT. Cowen Prime Services LLC purchased a new position in shares of Spotify in the second quarter worth about $29,000. Patriot Financial Group Insurance Agency LLC increased its holdings in shares of Spotify by 64.9% in the third quarter. Patriot Financial Group Insurance Agency LLC now owns 254 shares of the company’s stock worth $29,000 after buying an additional 100 shares during the period. AdvisorNet Financial Inc increased its holdings in shares of Spotify by 148.9% in the second quarter. AdvisorNet Financial Inc now owns 224 shares of the company’s stock worth $33,000 after buying an additional 134 shares during the period. Meridian Wealth Management LLC purchased a new position in shares of Spotify in the second quarter worth about $36,000. Finally, FNY Investment Advisers LLC purchased a new position in shares of Spotify in the third quarter worth about $42,000. Hedge funds and other institutional investors own 49.45% of the company’s stock.

Shares of SPOT traded down $1.25 during trading hours on Friday, hitting $147.51. The company had a trading volume of 871,575 shares, compared to its average volume of 1,583,981. The firm has a market cap of $26.24 billion, a P/E ratio of -245.85 and a beta of 1.95. The stock’s 50 day moving average price is $126.79 and its 200 day moving average price is $138.32. The company has a quick ratio of 0.81, a current ratio of 0.81 and a debt-to-equity ratio of 0.32. Spotify has a 52-week low of $103.29 and a 52-week high of $161.38.

Spotify (NYSE:SPOT) last released its quarterly earnings data on Monday, October 28th. The company reported $0.36 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of ($0.40) by $0.76. The firm had revenue of $1.73 billion for the quarter, compared to the consensus estimate of $1.72 billion. Spotify had a return on equity of 22.12% and a net margin of 7.32%. The company’s quarterly revenue was up 28.0% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.23 earnings per share. On average, research analysts expect that Spotify will post -0.9 EPS for the current fiscal year.

Several equities research analysts have issued reports on the company. Royal Bank of Canada lifted their price target on Spotify from $185.00 to $195.00 and gave the stock an “outperform” rating in a research note on Monday, October 28th. UBS Group reaffirmed a “buy” rating and set a $185.00 price target (up previously from $182.00) on shares of Spotify in a research note on Monday, October 28th. Raymond James lifted their price target on Spotify from $172.00 to $180.00 and gave the stock a “strong-buy” rating in a research note on Thursday, July 25th. Stifel Nicolaus reaffirmed a “buy” rating and set a $175.00 price target on shares of Spotify in a research note on Monday, October 28th. Finally, Zacks Investment Research raised Spotify from a “hold” rating to a “buy” rating and set a $135.00 price target for the company in a research note on Wednesday, October 30th. Two equities research analysts have rated the stock with a sell rating, seven have assigned a hold rating, eleven have issued a buy rating and two have assigned a strong buy rating to the company’s stock. The company currently has a consensus rating of “Buy” and an average target price of $158.89.

About Spotify

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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