Geode Capital Management LLC Acquires 93,274 Shares of Spotify Technology $SPOT

Key Points

• Geode Capital Management increased its Spotify stake by 5.7% in the fourth quarter, adding 93,274 shares and bringing its total holding to 1.72 million shares worth about $991.2 million.
• Several other major institutional investors also adjusted their positions in Spotify, and the stock remains heavily institutionally owned at 84.09%.
• Spotify reported strong quarterly results, with EPS of $4.04 beating estimates and revenue of $5.25 billion edging expectations, while analysts currently rate the stock a Moderate Buy with an average target price of $655.92.

Geode Capital Management LLC boosted its holdings in shares of Spotify Technology (NYSE:SPOT - Free Report) by 5.7% during the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 1,720,259 shares of the company's stock after acquiring an additional 93,274 shares during the period. Geode Capital Management LLC owned approximately 0.84% of Spotify Technology worth $991,223,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in SPOT. Bessemer Group Inc. raised its stake in shares of Spotify Technology by 35.1% in the 3rd quarter. Bessemer Group Inc. now owns 682,639 shares of the company's stock valued at $476,483,000 after purchasing an additional 177,310 shares during the period. Principal Financial Group Inc. raised its stake in shares of Spotify Technology by 12.9% in 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. Truxt Investmentos Ltda. acquired a new stake in shares of Spotify Technology in the 3rd quarter valued at about $2,093,000. Vanguard Group Inc. raised its stake in shares of Spotify Technology by 2.5% in the 3rd quarter. Vanguard Group Inc. now owns 1,005,882 shares of the company's stock valued at $702,106,000 after purchasing an additional 24,199 shares during the period. Finally, City Holding Co. increased its position in shares of Spotify Technology by 2,515.9% in the fourth quarter. City Holding Co. now owns 5,598 shares of the company's stock valued at $3,251,000 after acquiring an additional 5,384 shares during the last quarter. 84.09% of the stock is currently owned by institutional investors.

Insider Activity at Spotify Technology

In other news, CEO Gustav Soderstrom sold 20,833 shares of the business's stock in a transaction that occurred on 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 owned 20,492 shares in the company, valued at $8,826,314.24. The trade was a 50.41% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. 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, Director Thomas O. Staggs sold 5,477 shares of the business'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 sale, 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 disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 90,609 shares of company stock valued at $44,303,507. Insiders own 0.40% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on SPOT. Rosenblatt Securities lifted their target price on Spotify Technology from $500.00 to $534.00 and gave the company a "neutral" rating in a research report on Friday, May 22nd. Arete Research raised Spotify Technology from a "neutral" rating to a "buy" rating and set a $586.00 target price on the stock in a research report on Thursday, February 26th. Pivotal Research lowered their target price on Spotify Technology from $420.00 to $400.00 and set a "hold" rating on the stock in a research report on Wednesday, April 29th. Weiss Ratings raised Spotify Technology from a "hold (c)" rating to a "hold (c+)" rating in a research report on Monday, May 4th. Finally, Guggenheim lowered their target price on Spotify Technology from $600.00 to $565.00 and set a "buy" rating on the stock in a research report on Wednesday, April 29th. Two analysts have rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating and six have issued a Hold rating to the company's stock. According to MarketBeat, Spotify Technology currently has a consensus rating of "Moderate Buy" and an average target price of $655.92.

Key Stories Impacting Spotify Technology

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

• Positive Sentiment: Spotify’s new paid AI remix and cover tools, developed with Universal Music Group, could create a fresh revenue stream while keeping artists involved through revenue sharing. Article: Spotify, UMG Deal Sets Up Paid AI Music Remix Tool
• Positive Sentiment: The company is also expanding its platform with “Reserved by Spotify” concert-ticket access and narrated long-form audio, which could deepen user engagement and improve Premium subscriber value. Article: Spotify Tests Superfan Tickets And Narrated Articles To Deepen Engagement
• Positive Sentiment: Recent commentary highlighted that Spotify’s broader AI and audio expansion strategy is helping investors view the company as more than just a music streamer. Article: Why Spotify Technology (SPOT) Is Up 5.5% After Launching Paid AI Remixes And Superfan Tools
• Neutral Sentiment: Analysts remain generally constructive, but recent price-target changes and mixed ratings suggest the market is still weighing execution risk against long-term growth potential. Article: Spotify Technology S.A. (SPOT) Gains Attention Following AI Remix Collaboration With Universal Music Group
• Negative Sentiment: Recent insider sales by directors, including Thomas Staggs and Christopher Marshall, may pressure sentiment because investors often view heavy insider selling cautiously. SEC filing for insider sale SEC filing for insider sale
• Negative Sentiment: A shareholder law firm is investigating potential securities-law issues at Spotify, adding a legal overhang for the stock. Article: SPOT Investors Have Opportunity to Join Spotify Technology S.A. Fraud Investigation

Spotify Technology Stock Down 3.9%

Shares of NYSE SPOT opened at $496.41 on Friday. The business's 50 day moving average price is $479.44 and its two-hundred day moving average price is $519.98. The company has a market cap of $102.20 billion, a PE ratio of 39.55, a price-to-earnings-growth ratio of 1.26 and a beta of 1.55. 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 issued its quarterly earnings data on Tuesday, April 28th. The company reported $4.04 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.41 by $0.63. Spotify Technology had a return on equity of 35.73% and a net margin of 15.56%.The company had revenue of $5.25 billion during the quarter, compared to analysts' expectations of $5.23 billion. During the same quarter in the previous year, the company posted $1.07 earnings per share. The business's revenue was up 8.2% on a year-over-year basis. As a group, research analysts anticipate that Spotify Technology will post 14.72 EPS for the current fiscal year.

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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