Arrowstreet Capital Limited Partnership Has $737.74 Million Stock Position in Spotify Technology $SPOT

Key Points

• Arrowstreet Capital cut its Spotify position by 22.8% in the fourth quarter, but still held 1.27 million shares worth about $737.7 million as of its latest filing.
• Spotify’s most recent quarterly results topped expectations, with EPS of $4.04 versus $3.41 expected and revenue of $5.25 billion, up 8.2% year over year.
• Analyst sentiment remains constructive overall, with a Moderate Buy consensus and an average target price of $655.92, even as some firms have recently adjusted targets and earnings estimates.

Arrowstreet Capital Limited Partnership trimmed its position in Spotify Technology (NYSE:SPOT - Free Report) by 22.8% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 1,270,414 shares of the company's stock after selling 374,695 shares during the quarter. Arrowstreet Capital Limited Partnership owned approximately 0.62% of Spotify Technology worth $737,742,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Aptus Capital Advisors LLC increased its position in Spotify Technology by 17.0% in the fourth quarter. Aptus Capital Advisors LLC now owns 979 shares of the company's stock worth $569,000 after purchasing an additional 142 shares during the period. FORA Capital LLC acquired a new stake in Spotify Technology in the fourth quarter worth about $3,847,000. Kestra Advisory Services LLC increased its position in Spotify Technology by 8.7% in the fourth quarter. Kestra Advisory Services LLC now owns 5,798 shares of the company's stock worth $3,367,000 after purchasing an additional 466 shares during the period. Transamerica Financial Advisors LLC increased its position in Spotify Technology by 84.1% in the fourth quarter. Transamerica Financial Advisors LLC now owns 162 shares of the company's stock worth $94,000 after purchasing an additional 74 shares during the period. Finally, Liberty One Investment Management LLC acquired a new stake in Spotify Technology in the fourth quarter worth about $743,000. 84.09% of the stock is currently owned by institutional investors and hedge funds.

Spotify Technology Stock Performance

NYSE SPOT opened at $480.77 on Friday. The stock's 50 day moving average price is $482.76 and its two-hundred day moving average price is $510.88. Spotify Technology has a 52 week low of $405.00 and a 52 week high of $785.00. The stock has a market capitalization of $98.98 billion, a price-to-earnings ratio of 38.31, a PEG ratio of 1.18 and a beta of 1.56.

Spotify Technology (NYSE:SPOT - Get Free Report) last posted its quarterly earnings results on Tuesday, April 28th. The company reported $4.04 earnings per share for the quarter, beating analysts' consensus estimates of $3.41 by $0.63. The firm had revenue of $5.25 billion during the quarter, compared to the consensus estimate of $5.23 billion. Spotify Technology had a return on equity of 35.73% and a net margin of 15.56%.The business's revenue was up 8.2% compared to the same quarter last year. During the same period last year, the company earned $1.07 earnings per share. On average, equities research analysts forecast that Spotify Technology will post 14.71 EPS for the current year.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on the company. Arete Research upgraded Spotify Technology from a "neutral" rating to a "buy" rating and set a $586.00 target price for the company in a research report on Thursday, February 26th. Citizens Jmp boosted their target price on Spotify Technology from $600.00 to $625.00 and gave the stock a "market outperform" rating in a research report on Friday, May 22nd. Canaccord Genuity Group decreased their target price on Spotify Technology from $750.00 to $720.00 and set a "buy" rating for the company in a research report on Wednesday, April 29th. Morgan Stanley boosted their target price on Spotify Technology from $590.00 to $610.00 and gave the stock an "overweight" rating in a research report on Friday, May 22nd. Finally, Barclays boosted their target price on Spotify Technology from $500.00 to $565.00 and gave the stock an "overweight" rating in a research report on Friday, May 22nd. Two analysts have rated the stock with a Strong Buy rating, twenty-one have given a Buy rating and six have assigned a Hold rating to the company's stock. According to data from MarketBeat, Spotify Technology presently has an average rating of "Moderate Buy" and a consensus target price of $655.92.

Insider Activity at Spotify Technology

In other news, Director Sven Hans Martin Lorentzon sold 35,380 shares of the company's stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $525.73, for a total transaction of $18,600,327.40. Following the sale, the director owned 6,383 shares in the company, valued at $3,355,734.59. This represents a 84.72% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, CEO Alex Norstrom sold 5,436 shares of the company's stock in a transaction that occurred on Wednesday, April 1st. The stock was sold at an average price of $479.51, for a total value of $2,606,616.36. Following the sale, the chief executive officer owned 69,989 shares in the company, valued at approximately $33,560,425.39. This represents a 7.21% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 111,442 shares of company stock worth $54,647,508. Insiders own 0.40% of the company's stock.

Key Stories Impacting Spotify Technology

Here are the key news stories impacting Spotify Technology this week:

• Positive Sentiment: Spotify’s Investor Day emphasized long-term growth targets focused on increasing subscriber conversion and strengthening its broader brand and AI-driven strategy, which investors viewed favorably. Spotify's "North Star" Outlook Was Music to Investors Ears
• Positive Sentiment: Spotify also brought in a new head of PR and communications, signaling a stronger focus on reputation management and clearer messaging as it expands its content and AI initiatives. Will Spotify (SPOT) Elevate Its Brand Narrative As AI Strategy Deepens Under New PR Leadership?
• Neutral Sentiment: Spotify reversed its iPhone app icon change after user backlash, a small brand-related issue that is unlikely to materially affect fundamentals. Spotify reverts iPhone app icon to original after disco-ball backlash
• Negative Sentiment: Several analysts trimmed earnings estimates slightly, including Erste Group Bank lowering FY2026 and FY2027 EPS forecasts, which adds a modest headwind to sentiment. Spotify Technology (SPOT) analyst estimate updates
• Negative Sentiment: Recent trading has also reflected broader weakness, with SPOT sliding in the latest sessions even as the market rose, suggesting investors are still cautious after a strong run. Spotify (SPOT) Stock Slides as Market Rises: Facts to Know Before You Trade

About Spotify Technology

Spotify Technology is a digital audio streaming company best known for its on-demand music service and a growing portfolio of spoken-word content. Founded in Sweden in 2006 by Daniel Ek and Martin Lorentzon and launched commercially in 2008, the company offers a cross-platform app that enables users to discover, stream and organize music, podcasts and other audio. Its primary consumer products include a free, ad-supported tier and a paid Spotify Premium subscription that provides ad-free listening, offline playback and higher-quality audio streams.

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