Spotify Technology S.A. (SPOT) Insider Stock Purchases Send Up Green Flag

On momentum oscillators front, ‘RSI’ has touched 58.16 on daily chart, which may remain a cause for concern. If the price breaks below $134.79 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $139.12 mark may result into a pull-back move towards $140.41 level. The stock is currently hovering around the first support level of $136.31. Below this, the next support is placed in the zone of $134.79. Till the time, the SPOT stock trades above this level, bulls have nothing to fear.

Shares of Spotify Technology S.A. (SPOT) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry SPOT operates in has an average P/E of 32.59. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 4.01 on the Price-to-Sales ratio. Compare this with the industry average P/S of 5.62. 25.7 percent is the gross profit margin for Spotify Technology S.A. and operating margin sits at -0.8 percent. Along with this, the net profit margin is -1.5 percent.

On 11th of February, Spotify Technology S.A. (NYSE:SPOT) shares ended higher after a volatile session. The shares accumulated 3.11 points or 2.31 percent at $137.82 with a heavy trade volume of 3.148 million shares. After opening the session at $136.65, the shares went as high as $138.9 and as low as $136.09, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $23.9 billion and now has 173.46 million shares outstanding. Spotify Technology S.A. (SPOT) stock has gained 11.21 percent of market value in 21 trading days.

SPOT stock has a trailing 3-year beta of 0, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$0.75 a share in the trailing twelve months. The stock’s value has surged 21.43 percent year to date (YTD) against a decline of 0 percent in 12 month’s time. The company’s shares still trade -30.74 percent away from its 1-year high of $198.99 and 33.43 percent up from 52-week low of $103.29. The average consensus rating on the company is 2.1, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.