California State Teachers Retirement System Buys 74,177,316 Shares of Spotify Technology $SPOT

Key Points

• CalSTRS dramatically increased its Spotify stake by purchasing 74.18 million shares in the second quarter, bringing its holdings to 74.36 million shares valued at approximately $34.14 billion, or 36.12% of the company.
• Analysts remain broadly positive, with Spotify receiving a consensus “Moderate Buy” rating and an average price target of $609.05, despite mixed revisions from major firms.
• Spotify’s latest quarter showed 13.9% year-over-year revenue growth to $5.45 billion, but EPS of $3.03 fell short of the $3.16 consensus estimate; the stock opened at $542.08 and was down 0.1%.

California State Teachers Retirement System boosted its stake in Spotify Technology (NYSE:SPOT - Free Report) by 41,067.3% in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 74,357,940 shares of the company's stock after purchasing an additional 74,177,316 shares during the quarter. California State Teachers Retirement System owned about 36.12% of Spotify Technology worth $34,139,961,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently bought and sold shares of SPOT. JPL Wealth Management LLC acquired a new stake in shares of Spotify Technology in the 3rd quarter valued at about $35,000. Kemnay Advisory Services Inc. acquired a new position in Spotify Technology during the 4th quarter worth approximately $32,000. Pin Oak Investment Advisors Inc. acquired a new position in Spotify Technology during the 2nd quarter worth approximately $27,000. Osbon Capital Management LLC bought a new position in Spotify Technology in the fourth quarter worth approximately $35,000. Finally, Wilmington Savings Fund Society FSB boosted its holdings in Spotify Technology by 85.7% in the fourth quarter. Wilmington Savings Fund Society FSB now owns 65 shares of the company's stock worth $38,000 after acquiring an additional 30 shares in the last quarter. 84.09% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

SPOT has been the subject of several recent research reports. JPMorgan Chase & Co. boosted their price objective on Spotify Technology from $600.00 to $650.00 and gave the company an "overweight" rating in a report on Friday, May 22nd. Wells Fargo & Company cut their target price on Spotify Technology from $600.00 to $570.00 and set an "overweight" rating on the stock in a report on Thursday, July 9th. Wall Street Zen downgraded shares of Spotify Technology from a "buy" rating to a "hold" rating in a research report on Saturday, July 25th. Citizens Jmp lifted their price target on shares of Spotify Technology from $600.00 to $625.00 and gave the company a "market outperform" rating in a research report on Friday, May 22nd. Finally, Barclays boosted their price target on shares of Spotify Technology from $500.00 to $565.00 and gave the company an "overweight" rating in a research note on Friday, May 22nd. Two investment analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and six have assigned 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 $609.05.

Spotify Technology Stock Down 0.1%

SPOT stock opened at $542.08 on Tuesday. Spotify Technology has a twelve month low of $405.00 and a twelve month high of $745.00. The stock's 50 day moving average is $504.84 and its 200-day moving average is $492.78. The firm has a market capitalization of $111.60 billion, a PE ratio of 33.75, a P/E/G ratio of 1.60 and a beta of 1.59.

Spotify Technology (NYSE:SPOT - Get Free Report) last announced its earnings results on Tuesday, August 4th. The company reported $3.03 earnings per share (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 analysts' expectations of $5.47 billion. Spotify Technology had a net margin of 18.44% and a return on equity of 41.39%. The firm's quarterly revenue was up 13.9% on a year-over-year basis. During the same period in the previous year, the firm earned ($0.42) EPS. On average, equities research analysts anticipate that Spotify Technology will post 14.29 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Gustav Söderström sold 20,833 shares of the firm's stock in a transaction dated Monday, July 6th. The shares were sold at an average price of $478.45, for a total transaction of $9,967,548.85. Following the transaction, the chief executive officer directly owned 20,259 shares of the company's stock, valued at $9,692,918.55. This trade represents a 50.70% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Alex Norström sold 5,436 shares of the business's stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $502.10, for a total transaction of $2,729,415.60. Following the transaction, the chief executive officer owned 66,773 shares in the company, valued at approximately $33,526,723.30. This trade represents a 7.53% 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. Insiders have sold a total of 52,538 shares of company stock worth $25,878,250 over the last ninety days. Insiders own 0.40% of the company's stock.

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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