Montag A & Associates Inc. Reduces Stake in Spotify Technology $SPOT

Key Points

• Montag A & Associates cut its Spotify stake by 98.2% in Q4, selling 2,690 shares and leaving it with just 49 shares worth about $29,000.
• Major insider sales: CEO Alex Norström sold 5,436 shares for roughly $2.61 million and Gustav Söderström sold 20,833 shares for about $9.86 million, the latter reducing his holding by ~50.3%.
• Spotify beat quarterly estimates with $4.04 EPS versus $3.41 expected and $5.25 billion in revenue, while analysts maintain a consensus rating of "Moderate Buy" with a $645.77 price target.

Montag A & Associates Inc. decreased its stake in shares of Spotify Technology (NYSE:SPOT - Free Report) by 98.2% during the fourth quarter, according to its most recent filing with the SEC. The institutional investor owned 49 shares of the company's stock after selling 2,690 shares during the period. Montag A & Associates Inc.'s holdings in Spotify Technology were worth $29,000 as of its most recent SEC filing.

Other institutional investors have also added to or reduced their stakes in the company. Helios Capital Management PTE. Ltd. increased its stake in Spotify Technology by 56.3% in the 3rd quarter. Helios Capital Management PTE. Ltd. now owns 7,500 shares of the company's stock worth $5,235,000 after acquiring an additional 2,700 shares during the last quarter. Bessemer Group Inc. increased its stake in Spotify Technology by 35.1% in the 3rd quarter. Bessemer Group Inc. now owns 682,639 shares of the company's stock worth $476,483,000 after acquiring an additional 177,310 shares during the last quarter. Truxt Investmentos Ltda. bought a new position in Spotify Technology in the 3rd quarter worth about $2,093,000. Ownership Capital B.V. bought a new position in Spotify Technology in the 3rd quarter worth about $2,769,000. Finally, Vanguard Group Inc. increased its stake in Spotify Technology by 2.5% in the 3rd quarter. Vanguard Group Inc. now owns 1,005,882 shares of the company's stock worth $702,106,000 after acquiring an additional 24,199 shares during the last quarter. 84.09% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

SPOT has been the topic of a number of research analyst reports. Pivotal Research decreased their target price on Spotify Technology from $420.00 to $400.00 and set a "hold" rating on the stock in a research note on Wednesday, April 29th. Wells Fargo & Company decreased their target price on Spotify Technology from $640.00 to $580.00 and set an "overweight" rating on the stock in a research note on Wednesday, April 29th. Citigroup upgraded Spotify Technology from a "neutral" rating to a "buy" rating and set a $650.00 target price on the stock in a research note on Friday, January 30th. Wall Street Zen upgraded Spotify Technology from a "hold" rating to a "buy" rating in a research note on Sunday, April 26th. Finally, The Goldman Sachs Group decreased their target price on Spotify Technology from $670.00 to $600.00 and set a "buy" rating on the stock in a research note on Wednesday, April 29th. Two research analysts have rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $645.77.

Insider Activity

In other news, 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 transaction, the chief executive officer directly owned 69,989 shares in the company, valued at approximately $33,560,425.39. This represents a 7.21% 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, CEO Gustav Soderstrom sold 20,833 shares of the stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $473.52, for a total value of $9,864,842.16. Following the transaction, the chief executive officer owned 20,609 shares in the company, valued at $9,758,773.68. This trade represents a 50.27% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.40% of the stock is currently owned by corporate insiders.

Spotify Technology Trading Down 4.3%

Shares of Spotify Technology stock opened at $419.47 on Wednesday. The firm has a market capitalization of $86.36 billion, a PE ratio of 33.42, a price-to-earnings-growth ratio of 1.08 and a beta of 1.55. The business's 50-day moving average price is $498.37 and its 200-day moving average price is $543.26. Spotify Technology has a 12 month low of $405.00 and a 12 month high of $785.00.

Spotify Technology (NYSE:SPOT - Get Free Report) last announced 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. The firm had revenue of $5.25 billion for the quarter, compared to analyst estimates of $5.23 billion. Spotify Technology had a return on equity of 35.73% and a net margin of 15.56%.The company's revenue was up 8.2% on a year-over-year basis. During the same period in the prior year, the company earned $1.07 EPS. As a group, analysts predict that Spotify Technology will post 14.51 earnings per share 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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