Atalan Capital Partners LP Invests $92.59 Million in Spotify Technology $SPOT

Key Points

• Atalan Capital Partners LP disclosed a new stake in Spotify Technology, buying 159,440 shares worth about $92.59 million. The position makes Spotify the fund’s 9th-largest holding and about 6.6% of its portfolio.
• Institutional ownership remains high, with hedge funds and other investors holding 84.09% of Spotify’s shares. Several smaller funds also recently initiated positions or added to their holdings.
• Analyst sentiment is upbeat: Spotify has a consensus rating of “Moderate Buy” and an average price target of $652.16. The company also beat Q1 earnings expectations, reporting $4.04 EPS on revenue of $5.25 billion.

Atalan Capital Partners LP acquired a new position in shares of Spotify Technology (NYSE:SPOT - Free Report) in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor acquired 159,440 shares of the company's stock, valued at approximately $92,588,000. Spotify Technology accounts for about 6.6% of Atalan Capital Partners LP's holdings, making the stock its 9th largest holding. Atalan Capital Partners LP owned 0.08% of Spotify Technology at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. KERR FINANCIAL PLANNING Corp acquired a new position in Spotify Technology during the 3rd quarter worth $26,000. JPL Wealth Management LLC bought a new stake in Spotify Technology in the 3rd quarter valued at $35,000. Kemnay Advisory Services Inc. bought a new stake in Spotify Technology in the 4th quarter valued at $32,000. Newbridge Financial Services Group Inc. bought a new stake in Spotify Technology in the 4th quarter valued at $35,000. Finally, Wilmington Savings Fund Society FSB boosted its holdings in Spotify Technology by 85.7% in the 4th quarter. Wilmington Savings Fund Society FSB now owns 65 shares of the company's stock valued at $38,000 after purchasing an additional 30 shares during the period. Institutional investors and hedge funds own 84.09% of the company's stock.

Insider Buying and Selling at Spotify Technology

In related news, CEO Gustav Soderstrom sold 20,833 shares of the stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $473.52, for a total transaction of $9,864,842.16. Following the completion of the transaction, the chief executive officer directly owned 20,609 shares in the company, valued at approximately $9,758,773.68. This trade represents a 50.27% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Sven Hans Martin Lorentzon sold 35,380 shares of the stock in a transaction 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 transaction, the director owned 6,383 shares of the company's stock, valued at $3,355,734.59. The trade was a 84.72% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 111,442 shares of company stock valued at $54,647,508 in the last 90 days. 0.40% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on SPOT shares. Daiwa Securities Group initiated coverage on shares of Spotify Technology in a report on Thursday, March 26th. They set an "outperform" rating and a $535.00 price objective for the company. Cantor Fitzgerald lifted their price target on shares of Spotify Technology from $430.00 to $520.00 and gave the company a "neutral" rating in a report on Tuesday, May 26th. Barclays lifted their price target on shares of Spotify Technology from $500.00 to $565.00 and gave the company an "overweight" rating in a report on Friday, May 22nd. Weiss Ratings raised shares of Spotify Technology from a "hold (c)" rating to a "hold (c+)" rating in a research note on Monday, May 4th. Finally, Arete Research raised shares of Spotify Technology from a "neutral" rating to a "buy" rating and set a $586.00 target price for the company in a research note on Thursday, February 26th. Two analysts have rated the stock with a Strong Buy rating, twenty have given a Buy rating and six have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $652.16.

Spotify Technology Stock Performance

Shares of NYSE SPOT opened at $470.81 on Wednesday. The stock has a market cap of $96.93 billion, a P/E ratio of 37.51, a P/E/G ratio of 1.17 and a beta of 1.56. The firm has a 50 day moving average price of $482.23 and a 200 day moving average price of $508.74. Spotify Technology has a 52-week low of $405.00 and a 52-week high of $785.00.

Spotify Technology (NYSE:SPOT - Get Free Report) last issued its quarterly earnings data on Tuesday, April 28th. The company reported $4.04 earnings per share (EPS) 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 analysts' expectations of $5.23 billion. Spotify Technology had a net margin of 15.56% and a return on equity of 35.73%. The business's revenue for the quarter was up 8.2% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.07 earnings per share. Analysts predict that Spotify Technology will post 14.71 earnings per share for the current fiscal year.

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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