B.A. Schrock Wealth Management Inc. Makes New Investment in Spotify Technology $SPOT

Key Points

• B.A. Schrock Wealth Management initiated a Spotify position of 7,751 shares worth approximately $3.8 million, making SPOT its 26th-largest holding. Institutional investors own 84.09% of the company.
• Spotify is expanding beyond music through audiobooks, podcasts and a new software-tools business, while renewed content deals and Siri integration may support engagement and diversification.
• Despite strong profitability and a “Moderate Buy” analyst consensus with a $610.25 target, valuation concerns remain: the stock trades at roughly 33 times earnings, recently missed quarterly EPS and revenue estimates, and some analysts have reduced forecasts or price targets.

B.A. Schrock Wealth Management Inc. bought a new position in shares of Spotify Technology (NYSE:SPOT - Free Report) during the third quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm bought 7,751 shares of the company's stock, valued at approximately $3,809,000. Spotify Technology makes up 1.3% of B.A. Schrock Wealth Management Inc.'s holdings, making the stock its 26th biggest holding.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the business. Montanova Capital LLC lifted its position in shares of Spotify Technology by 9,154.5% during the 2nd quarter. Montanova Capital LLC now owns 101,800 shares of the company's stock worth $46,739,000 after buying an additional 100,700 shares during the period. Ally Financial Inc. lifted its holdings in shares of Spotify Technology by 100.0% during the second quarter. Ally Financial Inc. now owns 7,000 shares of the company's stock valued at $3,214,000 after acquiring an additional 3,500 shares during the period. Manning & Napier Advisors LLC bought a new position in shares of Spotify Technology during the second quarter valued at $100,867,000. HS Management Partners LLC acquired a new stake in shares of Spotify Technology in the 2nd quarter valued at $13,404,000. Finally, Plato Investment Management Ltd acquired a new stake in shares of Spotify Technology in the 2nd quarter valued at $1,363,000. 84.09% of the stock is owned by institutional investors.

Spotify Technology News Roundup

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

• Positive Sentiment: Spotify expanded its audiobooks business and renewed its agreement with Joe Rogan, supporting efforts to diversify beyond music streaming and strengthen user engagement. Some analysts view the stock as modestly undervalued despite its elevated valuation. Spotify Technology expands audiobooks and renews Rogan
• Positive Sentiment: The launch of Spotify’s internal software-tools business could create a new enterprise revenue stream, while closer Siri integration in iOS 27 makes it easier for iPhone users to control Spotify by voice. Spotify launches software-tools business Spotify Siri integration
• Neutral Sentiment: CEO Gustav Söderström sold approximately $11.1 million of shares to cover tax withholding tied to vested equity awards. The transaction substantially reduced his direct holdings, but its stated tax-related purpose makes it less concerning than a discretionary sale. Spotify CEO SEC filing
• Neutral Sentiment: Investment commentary highlighted Spotify’s strong profitability but questioned whether a valuation near 39 times earnings is justified. The stock has also lagged major market benchmarks over the past six months, adding to investor caution. Spotify valuation analysis
• Negative Sentiment: Erste Group Bank lowered its FY2026 EPS forecast to $13.71 from $14.07 and its FY2027 estimate to $17.16 from $17.52. The reductions reinforce concerns about earnings momentum, particularly with the shares trading at a premium valuation.
• Negative Sentiment: Reports that Spotify’s new lossless-audio feature is causing problems for many desktop users could hurt the rollout’s reception and create near-term customer-experience and support costs. Spotify lossless audio desktop-app problems

Insider Buying and Selling at Spotify Technology

In other news, CEO Alex Norström sold 5,436 shares of Spotify Technology stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $502.10, for a total value of $2,729,415.60. Following the completion of the sale, the chief executive officer directly owned 66,773 shares of the company's stock, valued at approximately $33,526,723.30. This trade represents a 7.53% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Gustav Söderström sold 20,913 shares of the business's stock in a transaction on Monday, September 14th. The stock was sold at an average price of $544.19, for a total value of $11,380,645.47. Following the sale, the chief executive officer owned 20,025 shares of the company's stock, valued at approximately $10,897,404.75. The trade was a 51.08% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders have sold 68,092 shares of company stock worth $35,762,410. Company insiders own 0.40% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on the stock. UBS Group dropped their target price on shares of Spotify Technology from $690.00 to $675.00 and set a "buy" rating for the company in a research report on Monday, October 5th. Phillip Securities raised Spotify Technology to a "buy" rating and set a $650.00 target price on the stock in a report on Tuesday, August 11th. Weiss Ratings upgraded Spotify Technology from a "hold (c)" rating to a "hold (c+)" rating in a research report on Wednesday, August 26th. KeyCorp decreased their price target on Spotify Technology from $680.00 to $660.00 and set an "overweight" rating on the stock in a research report on Thursday, October 1st. Finally, Wall Street Zen cut Spotify Technology from a "buy" rating to a "hold" rating in a report on Saturday, July 25th. One investment analyst has rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating and seven have issued a Hold rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $610.25.

Spotify Technology Trading Down 0.7%

Shares of NYSE SPOT opened at $524.00 on Thursday. Spotify Technology has a 1-year low of $405.00 and a 1-year high of $696.95. The company has a 50-day moving average of $520.20 and a two-hundred day moving average of $494.93. The company has a market cap of $107.88 billion, a PE ratio of 32.63, a P/E/G ratio of 1.62 and a beta of 1.61.

Spotify Technology (NYSE:SPOT - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The company reported $3.03 EPS for the quarter, missing the consensus estimate of $3.16 by ($0.13). The company had revenue of $5.45 billion for the quarter, compared to the consensus estimate of $5.47 billion. Spotify Technology had a net margin of 18.44% and a return on equity of 41.39%. Spotify Technology's revenue for the quarter was up 13.9% compared to the same quarter last year. During the same period last year, the company earned ($0.42) earnings per share. As a group, equities research analysts forecast that Spotify Technology will post 13.77 earnings per share for the current year.

About Spotify Technology

Spotify Technology SA is a global audio streaming company that operates the Spotify platform. The service provides users with access to a broad catalog of music, podcasts and audiobooks, along with personalized recommendations, playlists and other discovery features.

Spotify offers a subscription-based Premium service with enhanced listening features, as well as an ad-supported service available at no direct cost to users. The company generates revenue primarily through Premium subscriptions and advertising, including audio, video and display advertising delivered across its platform.

Founded in 2006 by Daniel Ek and Martin Lorentzon, Spotify is headquartered in Stockholm, Sweden, and serves listeners, creators, advertisers and other partners across markets worldwide.

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