Bessemer Group Inc. Lowers Stake in Spotify Technology $SPOT

Key Points

• Bessemer Group Inc. reduced its Spotify stake by 11.8% in the first quarter, selling 86,269 shares and leaving it with 643,123 shares valued at about $311.9 million.
• Spotify’s latest quarterly results beat expectations, with EPS of $4.04 versus the $3.41 estimate and revenue of $5.25 billion, up 8.2% year over year.
• Analyst sentiment remains mostly positive: the stock carries a Moderate Buy consensus with an average price target of $638.58, though some firms have trimmed their targets recently.

Bessemer Group Inc. lowered its holdings in shares of Spotify Technology (NYSE:SPOT - Free Report) by 11.8% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 643,123 shares of the company's stock after selling 86,269 shares during the period. Bessemer Group Inc. owned approximately 0.31% of Spotify Technology worth $311,857,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also bought and sold shares of SPOT. State Street Corp boosted its position in shares of Spotify Technology by 1.9% in the 4th 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 in the last quarter. Price T Rowe Associates Inc. MD increased its position in Spotify Technology by 4.0% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 3,869,472 shares of the company's stock valued at $2,247,042,000 after buying an additional 149,479 shares in the last quarter. Capital World Investors increased its position in 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 buying an additional 133,108 shares in the last quarter. Fisher Asset Management LLC raised its stake in Spotify Technology by 2.4% during the fourth quarter. Fisher Asset Management LLC now owns 2,665,512 shares of the company's stock valued at $1,547,890,000 after buying an additional 62,887 shares during the last quarter. Finally, Coatue Management LLC raised its stake in Spotify Technology by 35.9% during the fourth quarter. Coatue Management LLC now owns 2,450,881 shares of the company's stock valued at $1,423,251,000 after buying an additional 647,708 shares during the last quarter. Hedge funds and other institutional investors own 84.09% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on the company. Citizens Jmp increased their target price on Spotify Technology from $600.00 to $625.00 and gave the stock a "market outperform" rating in a research note on Friday, May 22nd. The Goldman Sachs Group lowered their price target on Spotify Technology from $670.00 to $600.00 and set a "buy" rating for the company in a research report on Wednesday, April 29th. Wall Street Zen upgraded shares of Spotify Technology from a "hold" rating to a "buy" rating in a research note on Sunday, July 12th. Guggenheim cut their price objective on shares of Spotify Technology from $600.00 to $565.00 and set a "buy" rating on the stock in a research report on Wednesday, April 29th. Finally, KeyCorp reduced their price objective on shares of Spotify Technology from $745.00 to $680.00 and set an "overweight" rating for the company in a research note on Wednesday, April 29th. Two equities research analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating and six have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $638.58.

Spotify Technology Trading Down 2.0%

Shares of SPOT opened at $475.67 on Friday. The company has a market cap of $97.93 billion, a price-to-earnings ratio of 37.90, a P/E/G ratio of 1.19 and a beta of 1.56. The business's fifty day simple moving average is $475.16 and its two-hundred day simple moving average is $491.82. Spotify Technology has a 12 month low of $405.00 and a 12 month high of $748.30.

Spotify Technology (NYSE:SPOT - Get Free Report) last announced its quarterly earnings results 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. Spotify Technology had a return on equity of 35.73% and a net margin of 15.56%.The firm had revenue of $5.25 billion for the quarter, compared to the consensus estimate of $5.23 billion. During the same period in the prior year, the company posted $1.07 earnings per share. The company's quarterly revenue was up 8.2% on a year-over-year basis. As a group, research analysts forecast that Spotify Technology will post 14.59 EPS for the current year.

Spotify Technology News Roundup

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

• Positive Sentiment: Spotify rolled out a new AI assistant that helps users search music, create playlists, and discover podcasts by speaking naturally, highlighting product innovation and potentially boosting user engagement. Spotify's new AI assistant lets you find songs, create playlists and explore podcasts using natural language
• Positive Sentiment: Jefferies reiterated a Buy rating and $600 price target, citing upcoming catalysts such as AI remixing features and a possible Warner Music Group remixing agreement, which supports a bullish longer-term view. Spotify seen delivering steady Q2 results as investors await AI remixing updates
• Positive Sentiment: Spotify expanded parent-managed accounts to its free tier in several major markets, a move that could widen adoption among families and improve the platform’s ecosystem. Spotify expands parent-managed accounts to users on its free tier
• Neutral Sentiment: Back Market announced new partnerships with Duolingo and Spotify as part of its back-to-school campaign, but the announcement appears more promotional than financially material for SPOT. Back Market Kicks Off Back-to-School Season with Survey Revealing How Parents Are Redefining the Smart Tech Purchase - And Debuting New Partnerships with Duolingo and Spotify
• Negative Sentiment: Singer Lorde criticized Spotify over sloppy AI-generated song descriptions, adding to concerns that Spotify’s AI rollout could face backlash around quality and trust. Lorde slams Spotify over sloppy AI-generated song descriptions
• Negative Sentiment: Recent market coverage noted that Spotify dipped more than the broader market, suggesting investors are still focused on valuation and near-term execution despite the company’s strong fundamentals. Why Spotify (SPOT) Dipped More Than Broader Market Today

Insider Buying and Selling at Spotify Technology

In other news, CEO Gustav Soderstrom sold 20,833 shares of the firm's stock in a transaction dated Tuesday, May 5th. The shares were sold at an average price of $430.72, for a total transaction of $8,973,189.76. Following the sale, the chief executive officer owned 20,492 shares of the company's stock, valued at $8,826,314.24. This trade represents a 50.41% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Alex Norstrom sold 5,436 shares of Spotify Technology stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $480.86, for a total transaction of $2,613,954.96. Following the completion of the sale, the chief executive officer owned 67,582 shares of the company's stock, valued at $32,497,480.52. This represents a 7.44% decrease in their ownership of the stock. 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 111,442 shares of company stock worth $54,757,553. 0.40% of the stock is owned by company insiders.

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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