Northwestern Mutual Wealth Management Co. Sells 25,118 Shares of Spotify Technology $SPOT

Key Points

• Northwestern Mutual Wealth Management cut its Spotify stake by 59.3% in the fourth quarter, selling 25,118 shares and leaving it with 17,268 shares valued at about $10.0 million.
• Spotify posted a strong quarterly beat, reporting $4.04 EPS versus $3.41 expected and revenue of $5.25 billion, up 8.2% year over year. The stock was also up 13.2% and traded near $490.66.
• Analysts remain broadly positive despite some target cuts: Spotify still has a Moderate Buy consensus with a target price of $645.77, while recent company news included AI licensing deals, new fan-engagement tools, and updated long-term growth guidance.

Northwestern Mutual Wealth Management Co. trimmed its position in Spotify Technology (NYSE:SPOT - Free Report) by 59.3% during the fourth quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 17,268 shares of the company's stock after selling 25,118 shares during the quarter. Northwestern Mutual Wealth Management Co.'s holdings in Spotify Technology were worth $10,028,000 as of its most recent SEC filing.

Other institutional investors and hedge funds also recently modified their holdings of the company. Greykasell Wealth Strategies Inc. raised its holdings in shares of Spotify Technology by 3,800.0% in 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 period. KERR FINANCIAL PLANNING Corp bought a new stake in shares of Spotify Technology in the 3rd quarter valued at about $26,000. Westfuller Advisors LLC bought a new stake in shares of Spotify Technology in the 3rd quarter valued at about $29,000. JPL Wealth Management LLC bought a new stake in shares of Spotify Technology in the 3rd quarter valued at about $35,000. Finally, Chilton Capital Management LLC raised its holdings in Spotify Technology by 183.3% in the 3rd quarter. Chilton Capital Management LLC now owns 51 shares of the company's stock valued at $36,000 after acquiring an additional 33 shares during the period. 84.09% of the stock is owned by institutional investors.

Spotify Technology Stock Up 13.2%

Shares of NYSE:SPOT opened at $490.66 on Friday. The company's 50 day moving average price is $479.71 and its two-hundred day moving average price is $523.90. Spotify Technology has a 12-month low of $405.00 and a 12-month high of $785.00. The firm has a market cap of $101.02 billion, a PE ratio of 39.10, a PEG ratio of 1.05 and a beta of 1.55.

Spotify Technology (NYSE:SPOT - Get Free Report) last announced its earnings results 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 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 posted $1.07 EPS. The business's revenue was up 8.2% compared to the same quarter last year. On average, research analysts expect that Spotify Technology will post 14.87 EPS for the current year.

Analyst Ratings Changes

Several research firms have weighed in on SPOT. Barclays lowered their price target on shares of Spotify Technology from $600.00 to $500.00 and set an "overweight" rating on the stock in a report on Wednesday, April 29th. Wells Fargo & Company lowered their price target on shares of Spotify Technology from $640.00 to $580.00 and set an "overweight" rating on the stock in a report on Wednesday, April 29th. Citigroup raised shares of Spotify Technology from a "neutral" rating to a "buy" rating and set a $650.00 price target on the stock in a report on Friday, January 30th. Moffett Nathanson began coverage on shares of Spotify Technology in a report on Tuesday, January 27th. They issued a "neutral" rating and a $487.00 price target on the stock. Finally, Weiss Ratings raised shares of Spotify Technology from a "hold (c)" rating to a "hold (c+)" rating in a report on Monday, May 4th. Two research analysts have rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating and five have given a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $645.77.

Key Spotify Technology News

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

• Positive Sentiment: Spotify and Universal Music Group announced licensing agreements that will let Premium users create “responsible” AI-generated covers and remixes, with participating artists and songwriters set to share in the revenue. Spotify strikes deal with Universal Music to let premium users create AI covers, remixes
• Positive Sentiment: At its first Investor Day since 2022, Spotify updated its 2030 outlook, targeting mid-teens annual revenue growth and gross margins of 35% to 40%, signaling stronger profitability and cash-flow potential. Spotify stock pops on guidance at first investor day since 2022
• Positive Sentiment: Spotify announced new fan-engagement features, including reserving concert tickets for top fans, which could improve retention and create additional value for artists and subscribers. Spotify Will Set Aside Concert Tickets for Artists' Superfans
• Positive Sentiment: The company also introduced additional AI tools for podcasts and audiobooks, broadening its content-creation ecosystem and potentially opening new subscription and creator revenue streams. Spotify adds AI-powered Q&A and briefing generation features to podcasts
• Neutral Sentiment: Canada is changing rules that could raise costs for Spotify and other streaming platforms, but this appears to be a secondary headline compared with the Investor Day and AI announcements. Netflix, Spotify to face higher costs as Canada changes rules
• Negative Sentiment: A law firm also said it is investigating claims on behalf of Spotify investors, which could add legal overhang if the probe develops further. INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Spotify Technology S.A. - SPOT

Insider Buying and Selling

In other Spotify Technology news, CEO Gustav Soderstrom sold 20,833 shares of the stock in a transaction that occurred on 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 $9,758,773.68. This represents a 50.27% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Alex Norstrom sold 5,436 shares of the stock in a transaction that occurred on 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 owned 69,989 shares in the company, valued at approximately $33,560,425.39. The trade was a 7.21% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 47,102 shares of company stock worth $21,444,648. Company insiders own 0.40% of the company's stock.

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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