Boston Common Asset Management LLC Raises Stock Position in Spotify Technology $SPOT

Key Points

• Boston Common Asset Management increased its Spotify stake by 64% in Q1, buying 20,516 shares and bringing its total to 52,596 shares worth about $25.5 million.
• Institutional ownership remains very high, with 84.09% of Spotify stock held by hedge funds and other investors. Several large funds, including Norges Bank and UBS AM, also recently added to or initiated positions.
• Spotify continues to draw mixed signals: analysts generally remain bullish with a Moderate Buy consensus and a $638.58 target, while recent insider selling and concerns about valuation, royalty costs, and competition add caution.

Boston Common Asset Management LLC grew its stake in Spotify Technology (NYSE:SPOT - Free Report) by 64.0% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 52,596 shares of the company's stock after buying an additional 20,516 shares during the period. Spotify Technology accounts for 1.6% of Boston Common Asset Management LLC's investment portfolio, making the stock its 11th largest holding. Boston Common Asset Management LLC's holdings in Spotify Technology were worth $25,504,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds have also recently modified their holdings of the company. Norges Bank purchased a new position in shares of Spotify Technology during the fourth quarter worth about $711,460,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in shares of Spotify Technology by 1,382.3% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,247,182 shares of the company's stock valued at $724,251,000 after purchasing an additional 1,163,045 shares during the period. Coatue Management LLC boosted its position in shares of Spotify Technology by 35.9% in the 4th quarter. Coatue Management LLC now owns 2,450,881 shares of the company's stock valued at $1,423,251,000 after purchasing an additional 647,708 shares during the period. National Pension Service purchased a new position in Spotify Technology during the 4th quarter worth approximately $316,278,000. Finally, Swedbank AB grew its stake in Spotify Technology by 37.9% during the 4th quarter. Swedbank AB now owns 1,616,321 shares of the company's stock worth $938,614,000 after buying an additional 444,162 shares during the last quarter. 84.09% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at Spotify Technology

In other news, Director Sven Hans Martin Lorentzon sold 35,380 shares of Spotify Technology stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $525.73, for a total value of $18,600,327.40. Following the sale, 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 ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Gustav Soderstrom sold 20,833 shares of the business's stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $430.72, for a total transaction of $8,973,189.76. Following the transaction, the chief executive officer owned 20,492 shares in the company, valued at approximately $8,826,314.24. This trade represents a 50.41% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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. Insiders have sold 111,442 shares of company stock worth $54,757,553 in the last 90 days. Corporate insiders own 0.40% of the company's stock.

Key Headlines Impacting Spotify Technology

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

• Positive Sentiment: Spotify unveiled a new AI assistant that lets users find songs, build playlists, and explore podcasts using natural language, which could improve engagement and support premium user growth. 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 a $600 price target ahead of earnings, signaling continued confidence in Spotify’s long-term growth and AI-related product roadmap. Spotify seen delivering steady Q2 results as investors await AI remixing updates
• Neutral Sentiment: Spotify was highlighted in an investor letter as having robust results, suggesting institutional investors still see the company as a strong operator despite recent market noise. Market Overlooked Spotify Technology S.A. (SPOT) Despite Robust Results
• Neutral Sentiment: Spotify partnered with Back Market for a back-to-school promotion, expanding brand visibility but with limited direct financial impact. 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: Zacks said Spotify’s growth story remains intact, but warned that a rich valuation, high royalty costs, and intensifying competition make the risk/reward less attractive. Spotify's Growth Story Is Intact, but Faces Valuation Threat
• Negative Sentiment: Spotify also faced criticism after Lorde slammed the company over sloppy AI-generated song descriptions, adding a reputational headwind around its AI rollout. Lorde slams Spotify over sloppy AI-generated song descriptions

Wall Street Analyst Weigh In

Several research analysts have commented on SPOT shares. Morgan Stanley lifted their price target on Spotify Technology from $590.00 to $610.00 and gave the stock an "overweight" rating in a research report on Friday, May 22nd. Daiwa Securities Group assumed coverage on shares of Spotify Technology in a research report on Thursday, March 26th. They set an "outperform" rating and a $535.00 target price on the stock. Canaccord Genuity Group cut their target price on shares of Spotify Technology from $750.00 to $720.00 and set a "buy" rating on the stock in a report on Wednesday, April 29th. Wells Fargo & Company reduced their price target on shares of Spotify Technology from $600.00 to $570.00 and set an "overweight" rating for the company in a research report on Thursday, July 9th. Finally, KeyCorp decreased their price target 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 investment analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating and six have issued a Hold rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $638.58.

Spotify Technology Trading Up 0.2%

NYSE:SPOT opened at $478.86 on Monday. Spotify Technology has a 12-month low of $405.00 and a 12-month high of $748.30. The stock's 50 day simple moving average is $476.38 and its 200-day simple moving average is $491.10. The firm has a market cap of $98.59 billion, a P/E ratio of 38.16, a PEG ratio of 1.18 and a beta of 1.56.

Spotify Technology (NYSE:SPOT - Get Free Report) last issued its quarterly earnings results on Tuesday, April 28th. The company reported $4.04 earnings per share for the quarter, topping the consensus estimate 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 during the quarter, compared to the consensus estimate of $5.23 billion. During the same period last year, the company earned $1.07 earnings per share. The company's revenue for the quarter was up 8.2% on a year-over-year basis. Research analysts forecast that Spotify Technology will post 14.51 EPS 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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