Legato Capital Management LLC Trims Holdings in Spotify Technology $SPOT

Key Points

• Legato Capital Management reduced its Spotify position by 27.3% in the fourth quarter, selling 3,000 shares and leaving it with 8,000 shares valued at about $4.65 million.
• Spotify’s latest earnings beat expectations, reporting $4.04 EPS versus the $3.41 consensus and $5.25 billion in revenue, with revenue up 8.2% year over year.
• Wall Street remains generally constructive despite some target cuts: analysts currently rate the stock a Moderate Buy with an average price target of $652.46.

Legato Capital Management LLC cut its holdings in Spotify Technology (NYSE:SPOT - Free Report) by 27.3% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 8,000 shares of the company's stock after selling 3,000 shares during the quarter. Legato Capital Management LLC's holdings in Spotify Technology were worth $4,646,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently modified their holdings of SPOT. KERR FINANCIAL PLANNING Corp purchased a new stake in shares of Spotify Technology in the 3rd quarter worth about $26,000. Greykasell Wealth Strategies Inc. grew its position in Spotify Technology by 3,800.0% during the 3rd quarter. Greykasell Wealth Strategies Inc. now owns 39 shares of the company's stock valued at $27,000 after purchasing an additional 38 shares during the last quarter. Westfuller Advisors LLC purchased a new stake in Spotify Technology during the 3rd quarter valued at about $29,000. Newbridge Financial Services Group Inc. purchased a new stake in Spotify Technology during the 4th quarter valued at about $35,000. Finally, JPL Wealth Management LLC purchased a new stake in Spotify Technology during the 3rd quarter valued at about $35,000. 84.09% of the stock is owned by hedge funds and other institutional investors.

Spotify Technology Stock Performance

SPOT opened at $518.92 on Friday. The stock has a market capitalization of $106.83 billion, a P/E ratio of 41.35, a P/E/G ratio of 1.18 and a beta of 1.55. The company's 50-day simple moving average is $479.80 and its two-hundred day simple moving average is $523.86. Spotify Technology has a 52-week low of $405.00 and a 52-week high of $785.00.

Spotify Technology (NYSE:SPOT - Get Free Report) last posted its earnings results on Tuesday, April 28th. The company reported $4.04 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.41 by $0.63. The business had revenue of $5.25 billion for the quarter, compared to analysts' expectations of $5.23 billion. Spotify Technology had a net margin of 15.56% and a return on equity of 35.73%. The business's revenue for the quarter was up 8.2% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.07 EPS. Research analysts forecast that Spotify Technology will post 14.87 EPS for the current fiscal year.

Analyst Ratings Changes

Several analysts recently commented on SPOT shares. Cantor Fitzgerald cut their price objective on shares of Spotify Technology from $525.00 to $430.00 and set a "neutral" rating on the stock in a research report on Wednesday, April 29th. Pivotal Research cut their price objective on shares of Spotify Technology from $420.00 to $400.00 and set a "hold" rating on the stock in a research report on Wednesday, April 29th. KeyCorp cut their price objective on shares of Spotify Technology from $745.00 to $680.00 and set an "overweight" rating on the stock in a research report on Wednesday, April 29th. The Goldman Sachs Group cut their price objective on shares of Spotify Technology from $670.00 to $600.00 and set a "buy" rating on the stock in a research report on Wednesday, April 29th. Finally, Daiwa Securities Group started coverage on shares of Spotify Technology in a research report on Thursday, March 26th. They set an "outperform" rating and a $535.00 price objective on the stock. Two investment analysts have rated the stock with a Strong Buy rating, twenty-one have given a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat, Spotify Technology presently has an average rating of "Moderate Buy" and an average target price of $652.46.

Trending Headlines about Spotify Technology

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

• Positive Sentiment: Spotify announced a new AI partnership with Universal Music Group that will let Premium users create licensed AI-generated covers and remixes, opening a potential new revenue stream while giving artists a cut of the economics. Spotify strikes deal with Universal Music to let premium users create AI covers, remixes
• Positive Sentiment: Management reinforced a bullish 2030 outlook, calling for mid-teens annual revenue growth and gross margins of 35% to 40%, which supports the argument that profitability can keep improving. Spotify stock pops on guidance at first investor day since 2022
• Positive Sentiment: Several Wall Street firms raised price targets after the event, including JPMorgan, Wells Fargo, Morgan Stanley, Barclays, Citizens JMP, and Jefferies, signaling stronger confidence in Spotify’s growth story. Analyst target hikes
• Positive Sentiment: Spotify also introduced new product features tied to engagement and monetization, including AI-generated podcasts, audiobook tools, and reserved concert tickets for top fans, which could deepen user activity and subscription value. Spotify adds AI-powered Q&A and briefing generation features to podcasts
• Neutral Sentiment: A Seeking Alpha opinion piece argued Spotify’s long-term path deserves a premium valuation, but this is more commentary than a new fundamental catalyst. Spotify's Path Forward Deserves This Premium
• Negative Sentiment: One Seeking Alpha note warned that weaker advertising trends could be a concern, suggesting ad-market softness may remain a headwind even as Spotify’s premium business improves. Spotify: Weaker Advertising Trends Are Becoming A Concern (Downgrade)

Insider Activity

In other Spotify Technology news, CEO Gustav Soderstrom sold 20,833 shares of the company's stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $473.52, for a total transaction of $9,864,842.16. Following the transaction, the chief executive officer owned 20,609 shares in the company, valued at approximately $9,758,773.68. This represents a 50.27% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Alex Norstrom sold 5,436 shares of the company's stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $479.51, for a total transaction of $2,606,616.36. Following the transaction, the chief executive officer owned 69,989 shares in the company, valued at $33,560,425.39. This represents a 7.21% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 47,102 shares of company stock worth $21,444,648 in the last 90 days. Company 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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