CI Investments Inc. Sells 21,181 Shares of Spotify Technology $SPOT

Key Points

• CI Investments Inc. reduced its Spotify Technology stake by 42.4% in the first quarter, selling 21,181 shares and leaving it with 28,770 shares valued at about $13.95 million.
• Spotify shares were down 3.8% in Thursday trading, opening at $474.72, while the stock has ranged from a 12-month low of $405 to a high of $748.30.
• Spotify’s latest earnings beat expectations, with EPS of $4.04 versus the $3.41 estimate and revenue of $5.25 billion, while analysts currently maintain a Moderate Buy consensus with an average price target of $630.70.

CI Investments Inc. cut its stake in shares of Spotify Technology (NYSE:SPOT - Free Report) by 42.4% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 28,770 shares of the company's stock after selling 21,181 shares during the quarter. CI Investments Inc.'s holdings in Spotify Technology were worth $13,951,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Principal Financial Group Inc. lifted its holdings in Spotify Technology by 12.9% in the 4th quarter. Principal Financial Group Inc. now owns 645,196 shares of the company's stock worth $374,672,000 after purchasing an additional 73,722 shares in the last quarter. City Holding Co. grew its holdings in Spotify Technology by 2,515.9% during the 4th quarter. City Holding Co. now owns 5,598 shares of the company's stock valued at $3,251,000 after buying an additional 5,384 shares in the last quarter. Robeco Schweiz AG raised its position in shares of Spotify Technology by 37.6% during the fourth quarter. Robeco Schweiz AG now owns 18,544 shares of the company's stock valued at $10,769,000 after buying an additional 5,071 shares during the last quarter. SBI Okasan Asset Management Co.Ltd. bought a new stake in shares of Spotify Technology during the fourth quarter valued at approximately $1,162,000. Finally, Robinhood Asset Management LLC purchased a new position in shares of Spotify Technology in the fourth quarter worth $8,233,000. 84.09% of the stock is owned by hedge funds and other institutional investors.

Spotify Technology Trading Down 3.8%

SPOT opened at $474.72 on Thursday. The stock has a 50-day moving average of $479.93 and a 200 day moving average of $489.13. Spotify Technology has a 12 month low of $405.00 and a 12 month high of $748.30. The firm has a market cap of $97.74 billion, a P/E ratio of 37.83, a P/E/G ratio of 1.22 and a beta of 1.56.

Spotify Technology (NYSE:SPOT - Get Free Report) last issued its quarterly earnings data 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. The business had revenue of $5.25 billion for the quarter, compared to the consensus estimate 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 in the prior year, the business posted $1.07 earnings per share. On average, research analysts forecast that Spotify Technology will post 14.51 earnings per share for the current fiscal year.

Insider Buying and Selling at Spotify Technology

In related news, Director Sven Hans Martin Lorentzon sold 35,380 shares of the company's stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $525.73, for a total transaction of $18,600,327.40. Following the transaction, the director directly owned 6,383 shares in the company, valued at approximately $3,355,734.59. This represents a 84.72% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Gustav Soderstrom sold 20,833 shares of the 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 completion of the sale, the chief executive officer directly owned 20,492 shares in the company, valued at $8,826,314.24. This trade represents a 50.41% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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. Over the last three months, insiders have sold 111,442 shares of company stock valued at $54,757,553. Insiders own 0.40% of the company's stock.

Analysts Set New Price Targets

SPOT has been the subject of a number of research reports. Daiwa Securities Group initiated 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 for the company. Guggenheim decreased their price target on shares of Spotify Technology from $600.00 to $565.00 and set a "buy" rating on the stock in a research note on Wednesday, April 29th. Cantor Fitzgerald increased their price objective on shares of Spotify Technology from $430.00 to $520.00 and gave the company a "neutral" rating in a report on Tuesday, May 26th. Morgan Stanley raised their price objective on Spotify Technology from $590.00 to $610.00 and gave the company an "overweight" rating in a research report on Friday, May 22nd. Finally, Barclays lifted their target price on Spotify Technology from $500.00 to $565.00 and gave the stock an "overweight" rating in a report on Friday, May 22nd. Two equities research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating and six have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $630.70.

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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