DSM Capital Partners LLC Acquires 141,078 Shares of Spotify Technology $SPOT

Key Points

• DSM Capital Partners sharply increased its Spotify stake in the first quarter, buying 141,078 additional shares and lifting its holdings to 144,331 shares worth about $70 million.
• Spotify's stock was down 1.7% in Thursday trading, opening at $485.78, while the company remains valued at about $100 billion with a 52-week range of $405 to $748.30.
• The company recently posted better-than-expected earnings, reporting $4.04 per share versus $3.41 expected and revenue of $5.25 billion, up 8.2% year over year.

DSM Capital Partners LLC lifted its stake in Spotify Technology (NYSE:SPOT - Free Report) by 4,336.9% during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 144,331 shares of the company's stock after purchasing an additional 141,078 shares during the period. Spotify Technology comprises about 1.2% of DSM Capital Partners LLC's investment portfolio, making the stock its 22nd largest position. DSM Capital Partners LLC owned 0.07% of Spotify Technology worth $69,987,000 as of its most recent filing with the Securities and Exchange Commission.

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

Spotify Technology Stock Down 1.7%

Spotify Technology stock opened at $485.78 on Thursday. Spotify Technology has a 52 week low of $405.00 and a 52 week high of $748.30. The company has a market capitalization of $100.01 billion, a price-to-earnings ratio of 38.71, a price-to-earnings-growth ratio of 1.21 and a beta of 1.56. The stock has a 50-day moving average price of $469.36 and a 200 day moving average price of $496.11.

Spotify Technology (NYSE:SPOT - Get Free Report) last released its quarterly earnings data on Tuesday, April 28th. The company reported $4.04 earnings per share for the quarter, topping analysts' consensus estimates of $3.41 by $0.63. Spotify Technology had a net margin of 15.56% and a return on equity of 35.73%. The firm had revenue of $5.25 billion for the quarter, compared to analyst estimates of $5.23 billion. During the same quarter in the prior year, the business earned $1.07 earnings per share. The business's quarterly revenue was up 8.2% compared to the same quarter last year. Research analysts anticipate that Spotify Technology will post 14.62 EPS for the current fiscal year.

Spotify Technology News Summary

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

• Positive Sentiment: Spotify updated its song-mixing feature with new customization tools, which could improve user engagement and strengthen the platform’s appeal. Spotify updates its song-mixing feature with new customization tools
• Positive Sentiment: Recent articles highlighted Spotify as a potentially attractive value or buy idea versus peers, reflecting continued bullish analyst interest in Spotify Technology (SPOT). XYZ vs. SPOT: Which Stock Is the Better Value Option?
• Neutral Sentiment: Two company executives sold shares on July 6, but the filings say the sales were made to cover tax withholding tied to vested equity awards, which typically limits the negative signal. SEC Form 4 filing for Gustav Soderstrom
• Neutral Sentiment: Another piece framed Spotify as having gained while the market dipped, suggesting relative strength in recent trading, but it was largely a recap rather than a new catalyst. Spotify (SPOT) Gains As Market Dips: What You Should Know
• Negative Sentiment: Spotify pushed back against prediction markets Kalshi and Polymarket after finding artificial streaming activity linked to betting on its music charts, raising concerns about platform integrity and reputational risk. Prediction Markets Face Spotify Pushback After $3 Million Kalshi Bet

Analyst Ratings Changes

Several research analysts have recently commented on the company. The Goldman Sachs Group reduced their price target 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. Daiwa Securities Group assumed coverage on Spotify Technology in a research note on Thursday, March 26th. They issued an "outperform" rating and a $535.00 target price on the stock. Barclays boosted their target price on shares of Spotify Technology from $500.00 to $565.00 and gave the stock an "overweight" rating in a report on Friday, May 22nd. Wells Fargo & Company increased their price target on shares of Spotify Technology from $580.00 to $600.00 and gave the company an "overweight" rating in a research report on Friday, May 22nd. Finally, UBS Group lowered their price target on shares of Spotify Technology from $760.00 to $735.00 and set a "buy" rating on the stock in a report on Thursday, April 30th. Two research 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. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $641.83.

Insiders Place Their Bets

In related news, Director Thomas O. Staggs sold 5,477 shares of the company's stock in a transaction dated 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 transaction, the director owned 3,619 shares of the company's stock, valued at approximately $1,903,594. This represents a 60.21% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Christopher P. Marshall sold 2,650 shares of the company's stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $519.86, for a total value of $1,377,629.00. Following the transaction, the director directly owned 4,039 shares of the company's stock, valued at approximately $2,099,714.54. The trade was a 39.62% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 111,442 shares of company stock valued at $54,757,553. Insiders own 0.40% of the company's stock.

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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