Employees Retirement System of Texas Raises Stake in Spotify Technology $SPOT

Key Points

• Employees Retirement System of Texas sharply increased its Spotify stake in the fourth quarter, boosting holdings by 2,886% to 100,209 shares valued at about $58.2 million.
• Several other institutional investors also raised positions, and overall 84.09% of Spotify’s stock is owned by hedge funds and other institutions, underscoring strong institutional interest.
• Spotify reported better-than-expected quarterly results, with EPS of $4.04 beating estimates and revenue rising 8.2% year over year to $5.25 billion, while analysts maintain a Moderate Buy rating and an average target price of $655.92.

Employees Retirement System of Texas increased its stake in Spotify Technology (NYSE:SPOT - Free Report) by 2,886.0% during the fourth quarter, according to its most recent filing with the SEC. The fund owned 100,209 shares of the company's stock after buying an additional 96,853 shares during the quarter. Employees Retirement System of Texas' holdings in Spotify Technology were worth $58,192,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the stock. GS Investments Inc. boosted its holdings in shares of Spotify Technology by 51.2% in the 4th quarter. GS Investments Inc. now owns 2,650 shares of the company's stock worth $1,539,000 after buying an additional 897 shares during the last quarter. Wealth Advisors of Tampa Bay LLC boosted its holdings in shares of Spotify Technology by 31.0% in the 4th quarter. Wealth Advisors of Tampa Bay LLC now owns 3,423 shares of the company's stock worth $1,988,000 after buying an additional 810 shares during the last quarter. Mmbg Investment Advisors CO. boosted its holdings in shares of Spotify Technology by 63.5% in the 4th quarter. Mmbg Investment Advisors CO. now owns 3,954 shares of the company's stock worth $2,296,000 after buying an additional 1,535 shares during the last quarter. Fisher Asset Management LLC boosted its holdings in shares of Spotify Technology by 2.4% in the 4th quarter. Fisher Asset Management LLC now owns 2,665,512 shares of the company's stock worth $1,547,890,000 after buying an additional 62,887 shares during the last quarter. Finally, Simplify Asset Management Inc. boosted its holdings in shares of Spotify Technology by 26.6% in the 4th quarter. Simplify Asset Management Inc. now owns 1,042 shares of the company's stock worth $605,000 after buying an additional 219 shares during the last quarter. 84.09% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at Spotify Technology

In other news, CEO Gustav Soderstrom sold 20,833 shares of the stock in a transaction dated Tuesday, May 5th. The shares were sold at an average price of $430.72, for a total value of $8,973,189.76. Following the sale, the chief executive officer directly owned 20,492 shares of the company's stock, valued at approximately $8,826,314.24. This represents a 50.41% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. 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. Also, CEO Alex Norstrom sold 5,436 shares of the stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $479.51, for a total transaction of $2,606,616.36. Following the completion of the sale, the chief executive officer directly owned 69,989 shares in the company, valued at approximately $33,560,425.39. The trade was a 7.21% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 47,102 shares of company stock worth $21,444,648. Insiders own 0.40% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on the stock. Benchmark cut their price target on shares of Spotify Technology from $760.00 to $695.00 and set a "buy" rating on the stock in a report on Wednesday, April 29th. Weiss Ratings raised shares of Spotify Technology from a "hold (c)" rating to a "hold (c+)" rating in a report on Monday, May 4th. Barclays upped their price objective on shares of Spotify Technology from $500.00 to $565.00 and gave the company an "overweight" rating in a report on Friday, May 22nd. KeyCorp dropped their price objective on shares of Spotify Technology from $745.00 to $680.00 and set an "overweight" rating on the stock in a report on Wednesday, April 29th. Finally, JPMorgan Chase & Co. upped their price objective on shares of Spotify Technology from $600.00 to $650.00 and gave the company an "overweight" rating in a report on Friday, May 22nd. Two research analysts have rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $655.92.

Spotify Technology Stock Up 2.0%

NYSE SPOT opened at $530.12 on Wednesday. The company has a market cap of $109.14 billion, a PE ratio of 42.24, a price-to-earnings-growth ratio of 1.26 and a beta of 1.55. Spotify Technology has a 52 week low of $405.00 and a 52 week high of $785.00. The firm's 50-day simple moving average is $480.28 and its two-hundred day simple moving average is $521.61.

Spotify Technology (NYSE:SPOT - Get Free Report) last released its quarterly earnings data on Tuesday, April 28th. The company reported $4.04 EPS for the quarter, beating the consensus estimate of $3.41 by $0.63. Spotify Technology had a net margin of 15.56% and a return on equity of 35.73%. The business had revenue of $5.25 billion for the quarter, compared to the consensus estimate of $5.23 billion. During the same period in the prior year, the firm earned $1.07 earnings per share. The company's revenue was up 8.2% compared to the same quarter last year. As a group, equities research analysts anticipate that Spotify Technology will post 14.86 EPS for the current year.

Trending Headlines about Spotify Technology

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

• Positive Sentiment: Spotify set ambitious 2030 goals, including a mid-teens revenue CAGR and operating margins above 20%, signaling confidence in stronger monetization and profitability over time.
• Positive Sentiment: The company unveiled new AI-related offerings, including legal AI remix tools and expansion into AI-generated music, which could deepen user engagement and create new revenue opportunities.
• Positive Sentiment: Spotify is broadening its audiobook and spoken-word ecosystem by adding narrated long-form magazine articles and other long-form content, reinforcing its strategy to become a full-service audio platform.
• Positive Sentiment: Cantor Fitzgerald raised its price target on Spotify, reflecting improving sentiment around the company’s long-term strategy and growth outlook.
• Neutral Sentiment: Coverage from Forbes and other outlets highlighted Spotify’s push to own more of the audio production layer and expand its content ecosystem, but these pieces were more strategic commentary than direct catalysts.
• Negative Sentiment: Some investors may worry that Spotify’s expansion into AI-generated music could raise platform-quality or rights-management concerns, even as management frames it as a growth opportunity.

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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