Capital International Ltd. CA Reduces Position in Spotify Technology $SPOT

Key Points

• Capital International Ltd. CA cut its Spotify stake by 14.3% in the fourth quarter, selling 2,263 shares and leaving it with 13,518 shares worth about $7.85 million.
• Spotify reported better-than-expected quarterly results, posting EPS of $4.04 versus $3.41 expected and revenue of $5.25 billion, up 8.2% year over year.
• Wall Street remains broadly positive on the stock, with analysts assigning a Moderate Buy rating and an average price target of $655.92, even as some recent price targets were lowered.

Capital International Ltd. CA lessened its position in shares of Spotify Technology (NYSE:SPOT - Free Report) by 14.3% during the fourth quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 13,518 shares of the company's stock after selling 2,263 shares during the quarter. Capital International Ltd. CA's holdings in Spotify Technology were worth $7,850,000 as of its most recent SEC filing.

Other hedge funds have also recently added to or reduced their stakes in the company. KERR FINANCIAL PLANNING Corp purchased a new position in Spotify Technology during the 3rd quarter worth approximately $26,000. JPL Wealth Management LLC purchased a new position in Spotify Technology during the 3rd quarter worth approximately $35,000. Newbridge Financial Services Group Inc. purchased a new position in Spotify Technology during the 4th quarter worth approximately $35,000. Kozak & Associates Inc. grew its stake in Spotify Technology by 1,700.0% during the 4th quarter. Kozak & Associates Inc. now owns 72 shares of the company's stock worth $39,000 after buying an additional 68 shares during the last quarter. Finally, Eastern Bank grew its stake in Spotify Technology by 110.5% during the 4th quarter. Eastern Bank now owns 80 shares of the company's stock worth $46,000 after buying an additional 42 shares during the last quarter. Hedge funds and other institutional investors own 84.09% of the company's stock.

Spotify Technology Trading Up 0.7%

Spotify Technology stock opened at $497.19 on Friday. The stock has a 50 day moving average of $481.01 and a two-hundred day moving average of $515.08. The stock has a market capitalization of $102.36 billion, a price-to-earnings ratio of 39.62, a PEG ratio of 1.21 and a beta of 1.56. Spotify Technology has a twelve month low of $405.00 and a twelve month high of $785.00.

Spotify Technology (NYSE:SPOT - Get Free Report) last posted its quarterly earnings results on Tuesday, April 28th. The company reported $4.04 EPS for the quarter, beating the consensus estimate of $3.41 by $0.63. The business had revenue of $5.25 billion during the quarter, compared to analysts' expectations of $5.23 billion. Spotify Technology had a return on equity of 35.73% and a net margin of 15.56%.The company's quarterly revenue was up 8.2% compared to the same quarter last year. During the same period last year, the firm earned $1.07 EPS. Equities analysts predict that Spotify Technology will post 14.72 earnings per share for the current year.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on SPOT. Benchmark decreased their price objective on Spotify Technology from $760.00 to $695.00 and set a "buy" rating for the company in a research report on Wednesday, April 29th. Barclays increased their price objective on Spotify Technology from $500.00 to $565.00 and gave the stock an "overweight" rating in a research report on Friday, May 22nd. The Goldman Sachs Group decreased their price objective 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. UBS Group decreased their price objective on Spotify Technology from $760.00 to $735.00 and set a "buy" rating for the company in a research report on Thursday, April 30th. Finally, JPMorgan Chase & Co. increased their price objective on Spotify Technology from $600.00 to $650.00 and gave the stock an "overweight" rating in a research report on Friday, May 22nd. Two research analysts have rated the stock with a Strong Buy rating, twenty-one have given a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $655.92.

Insiders Place Their Bets

In other news, Director Thomas O. Staggs sold 5,477 shares of the firm's stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $526.00, for a total value of $2,880,902.00. Following the completion of the sale, the director directly owned 3,619 shares of the company's stock, valued at $1,903,594. This trade represents a 60.21% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Alex Norstrom sold 5,436 shares of the firm's stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $479.51, for a total value of $2,606,616.36. Following the completion of the sale, the chief executive officer directly owned 69,989 shares of the company's stock, valued at $33,560,425.39. This represents a 7.21% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 111,442 shares of company stock worth $54,647,508. Corporate insiders own 0.40% of the company's stock.

Spotify Technology Company 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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