Assenagon Asset Management S.A. Sells 31,581 Shares of Spotify Technology $SPOT

Key Points

• Assenagon Asset Management cut its Spotify stake by 18.3%, selling 31,581 shares and retaining 140,828 shares valued at approximately $64.7 million. Institutional investors collectively own 84.09% of the company.
• Spotify shares were trading at $489.90, up 3.1%, while the company reported more than 300 million Premium subscribers and 777 million monthly active users. Revenue and net income rose substantially, although higher marketing, cloud and AI expenses pressured adjusted earnings and near-term guidance.
• Analyst sentiment remains positive overall, with a consensus “Moderate Buy” rating and average price target of $630, despite some target reductions. Recent insider sales included CEO and director transactions, with insiders owning just 0.40% of the stock.

Assenagon Asset Management S.A. lessened its holdings in Spotify Technology (NYSE:SPOT - Free Report) by 18.3% during the second quarter, according to its most recent disclosure with the SEC. The institutional investor owned 140,828 shares of the company's stock after selling 31,581 shares during the period. Assenagon Asset Management S.A. owned 0.07% of Spotify Technology worth $64,658,000 as of its most recent SEC filing.

Several other large investors also recently added to or reduced their stakes in the business. State Street Corp lifted its stake in Spotify Technology by 1.9% during the fourth quarter. State Street Corp now owns 4,712,249 shares of the company's stock worth $2,736,450,000 after purchasing an additional 89,951 shares during the last quarter. Price T Rowe Associates Inc. MD boosted its stake in Spotify Technology by 4.0% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 3,869,472 shares of the company's stock worth $2,247,042,000 after buying an additional 149,479 shares in the last quarter. Capital World Investors grew its holdings in shares of Spotify Technology by 4.9% during the 4th quarter. Capital World Investors now owns 2,863,821 shares of the company's stock valued at $1,663,024,000 after purchasing an additional 133,108 shares during the last quarter. Fisher Asset Management LLC grew its holdings in shares of Spotify Technology by 2.4% during the 4th quarter. Fisher Asset Management LLC now owns 2,665,512 shares of the company's stock valued at $1,547,890,000 after purchasing an additional 62,887 shares during the last quarter. Finally, Coatue Management LLC raised its position in Spotify Technology by 35.9% in the 4th quarter. Coatue Management LLC now owns 2,450,881 shares of the company's stock worth $1,423,251,000 after purchasing an additional 647,708 shares during the period. Institutional investors own 84.09% of the company's stock.

Spotify Technology Trading Up 3.1%

Shares of NYSE SPOT opened at $489.90 on Friday. The firm has a market capitalization of $100.86 billion, a price-to-earnings ratio of 30.50, a price-to-earnings-growth ratio of 1.16 and a beta of 1.58. Spotify Technology has a 12-month low of $405.00 and a 12-month high of $748.30. The firm has a 50 day moving average of $483.03 and a 200 day moving average of $485.12.

Insider Activity

In related news, Director Thomas O. Staggs sold 5,477 shares of the company's stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $526.00, for a total transaction of $2,880,902.00. Following the completion of the transaction, the director owned 3,619 shares in the company, valued at approximately $1,903,594. This represents a 60.21% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Gustav Soderstrom sold 20,833 shares of the firm's stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $507.24, for a total transaction of $10,567,330.92. Following the transaction, the chief executive officer directly owned 20,142 shares of the company's stock, valued at $10,216,828.08. The trade was a 50.84% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 116,878 shares of company stock worth $59,081,110. 0.40% of the stock is currently owned by insiders.

Key Spotify Technology News

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

• Positive Sentiment: Spotify surpassed 300 million Premium subscribers and reported 777 million monthly active users, up 12% year over year. Revenue increased 14% to approximately €4.78 billion, while net income reached €545 million, a significant improvement from the prior-year loss. Spotify now has over 300 million subscribers
• Positive Sentiment: Management forecast third-quarter revenue of roughly €5.0 billion and operating income of €670 million. Record margins, subscriber gains and stronger cash flow reinforce the long-term profitability argument. Spotify Q2 strengthens the long-term story
• Positive Sentiment: Wall Street remains broadly constructive. Guggenheim assigned a Buy rating with a $565 target, while Cantor Fitzgerald raised its price objective to $530, supporting the view that SPOT has further appreciation potential.
• Neutral Sentiment: Spotify is expanding AI features, including personalized podcasts in Germany that can use calendar and email information with user permission, as well as tools for fan-made covers and remixes. These initiatives could improve engagement and monetization but may increase costs and raise privacy concerns. Spotify plans AI podcasts for Germany
• Negative Sentiment: Despite beating headline revenue and earnings estimates, adjusted second-quarter earnings reportedly came in below consensus because higher marketing, cloud and AI expenses offset operational gains. Third-quarter profit guidance also fell short of investor expectations. Spotify Q2 earnings miss
• Negative Sentiment: Third-quarter guidance for 788 million monthly active users implies a marked slowdown in user growth, particularly in North America and Europe. Investors appear to be demanding faster growth and stronger near-term monetization, explaining the initial post-earnings pressure despite the quarterly beat.
• Negative Sentiment: Co-CEO Gustav Soderstrom sold 20,833 shares and CEO Alex Norstrom sold 5,436 shares to cover tax withholding on vested equity awards. Because the transactions were tax-related, their negative signaling value is limited, but the insider selling remains a near-term overhang. Spotify co-CEO stock sale

Analyst Upgrades and Downgrades

Several analysts have weighed in on SPOT shares. Cantor Fitzgerald boosted their price target on shares of Spotify Technology from $510.00 to $530.00 and gave the stock a "neutral" rating in a research note on Wednesday. Morgan Stanley increased their price objective on Spotify Technology from $590.00 to $610.00 and gave the company an "overweight" rating in a research note on Friday, May 22nd. Benchmark cut their target price on shares of Spotify Technology from $695.00 to $650.00 and set a "buy" rating on the stock in a report on Wednesday, July 22nd. Weiss Ratings downgraded shares of Spotify Technology from a "hold (c+)" rating to a "hold (c)" rating in a research note on Tuesday, June 23rd. Finally, Rosenblatt Securities dropped their price target on shares of Spotify Technology from $531.00 to $527.00 and set a "neutral" rating for the company in a research report on Wednesday. Two research analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $630.00.

Spotify Technology Profile

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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