Diamond Hill Capital Management LLC Investment Advisor Makes New $1.76 Million Investment in Spotify Technology $SPOT

Key Points

• Diamond Hill Capital Management initiated a $1.76 million position in Spotify during the second quarter, while institutional investors collectively own 84.09% of the company.
• Analysts maintain a generally positive outlook, with Spotify receiving a “Moderate Buy” consensus rating and an average price target of $609.05; targets from Argus, Guggenheim and JPMorgan range from $565 to $650.
• Spotify’s latest quarter included $5.45 billion in revenue, up 13.9% year over year, but earnings of $2.98 per share fell short of the $3.16 consensus estimate. Meanwhile, insiders sold $59.1 million worth of shares over the past three months.

Diamond Hill Capital Management LLC Investment Advisor purchased a new stake in shares of Spotify Technology (NYSE:SPOT - Free Report) in the second quarter, according to its most recent 13F filing with the SEC. The fund purchased 3,843 shares of the company's stock, valued at approximately $1,764,000.

Several other institutional investors also recently modified their holdings of SPOT. Northside Capital Management LLC purchased a new stake in Spotify Technology during the second quarter valued at about $523,000. Wasatch Advisors LP increased its holdings in shares of Spotify Technology by 7.2% in the second quarter. Wasatch Advisors LP now owns 1,054 shares of the company's stock worth $484,000 after buying an additional 71 shares during the period. Community Financial Services Group LLC bought a new stake in shares of Spotify Technology in the 2nd quarter valued at about $52,000. Arista Wealth Management LLC raised its holdings in Spotify Technology by 62.0% during the 2nd quarter. Arista Wealth Management LLC now owns 2,439 shares of the company's stock valued at $1,120,000 after buying an additional 933 shares during the last quarter. Finally, Valeo Financial Advisors LLC raised its position in Spotify Technology by 77.6% during the 2nd quarter. Valeo Financial Advisors LLC now owns 1,387 shares of the company's stock valued at $637,000 after purchasing an additional 606 shares during the last quarter. 84.09% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

SPOT has been the subject of several research reports. Argus restated a "buy" rating and issued a $600.00 price objective on shares of Spotify Technology in a report on Thursday, August 13th. Guggenheim reissued a "buy" rating and issued a $565.00 target price on shares of Spotify Technology in a research note on Wednesday, August 5th. JPMorgan Chase & Co. upped their price target on shares of Spotify Technology from $600.00 to $650.00 and gave the stock an "overweight" rating in a research note on Friday, May 22nd. Weiss Ratings downgraded shares of Spotify Technology from a "hold (c+)" rating to a "hold (c)" rating in a research report on Tuesday, June 23rd. Finally, Wall Street Zen cut shares of Spotify Technology from a "buy" rating to a "hold" rating in a report on Saturday, July 25th. Two analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat.com, Spotify Technology presently has an average rating of "Moderate Buy" and an average price target of $609.05.

Insider Activity at Spotify Technology

In related news, Director Thomas O. Staggs sold 5,477 shares of Spotify Technology stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $526.00, for a total transaction of $2,880,902.00. Following the sale, the director owned 3,619 shares of the company's stock, valued at approximately $1,903,594. This trade represents a 60.21% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Sven Hans Martin Lorentzon sold 35,380 shares of the company's stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $525.73, for a total value of $18,600,327.40. Following the completion of the transaction, 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 SEC filing for this sale provides additional information. Insiders have sold 116,878 shares of company stock worth $59,081,110 in the last three months. Corporate insiders own 0.40% of the company's stock.

Spotify Technology Price Performance

Shares of NYSE SPOT opened at $491.05 on Tuesday. The stock has a market cap of $101.10 billion, a PE ratio of 30.58, a price-to-earnings-growth ratio of 1.26 and a beta of 1.58. Spotify Technology has a 1 year low of $405.00 and a 1 year high of $745.00. The firm has a fifty day moving average price of $483.26 and a 200-day moving average price of $484.68.

Spotify Technology (NYSE:SPOT - Get Free Report) last issued its earnings results on Tuesday, August 4th. The company reported $2.98 earnings per share for the quarter, missing the consensus estimate of $3.16 by ($0.18). The firm had revenue of $5.45 billion during the quarter, compared to the consensus estimate of $5.47 billion. Spotify Technology had a return on equity of 41.39% and a net margin of 18.44%.The company's quarterly revenue was up 13.9% on a year-over-year basis. During the same period in the prior year, the company posted ($0.42) EPS. On average, research analysts expect that Spotify Technology will post 14.3 EPS for the current 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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