Round Rock Advisors LLC Takes $1.55 Million Position in Spotify Technology $SPOT

Key Points

• Round Rock Advisors took a new position in Spotify by buying 2,664 shares in Q4, valued at approximately $1.55 million.
• Insiders made sizable sales on April 1: CEO Gustav Söderström sold 20,833 shares for about $9.86 million (a 50.27% drop in his holding) and Alex Norström sold 5,436 shares for about $2.61 million (a 7.21% drop); insiders now own roughly 0.40% of the stock.
• Spotify beat quarterly expectations with $5.16 EPS (vs. $3.16 est.) and $5.32 billion revenue; the stock has a market cap near $110.6 billion and a consensus analyst rating of Moderate Buy with an average target of about $691.21.

Round Rock Advisors LLC purchased a new stake in shares of Spotify Technology (NYSE:SPOT - Free Report) during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission. The firm purchased 2,664 shares of the company's stock, valued at approximately $1,547,000.

Several other hedge funds also recently modified their holdings of the company. Sivia Capital Partners LLC acquired a new position in shares of Spotify Technology in the 2nd quarter worth $312,000. Jump Financial LLC grew its holdings in shares of Spotify Technology by 5.2% in the 2nd quarter. Jump Financial LLC now owns 1,132 shares of the company's stock worth $869,000 after acquiring an additional 56 shares during the last quarter. Cary Street Partners Financial LLC acquired a new position in shares of Spotify Technology in the 2nd quarter worth $178,000. NewEdge Advisors LLC grew its holdings in shares of Spotify Technology by 36.9% in the 2nd quarter. NewEdge Advisors LLC now owns 12,650 shares of the company's stock worth $9,707,000 after acquiring an additional 3,412 shares during the last quarter. Finally, Glenview Trust co acquired a new position in shares of Spotify Technology in the 2nd quarter worth $298,000. 84.09% of the stock is currently owned by institutional investors and hedge funds.

Insider Transactions at Spotify Technology

In related news, CEO Gustav Soderstrom sold 20,833 shares of the business's stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $473.52, for a total transaction of $9,864,842.16. Following the transaction, the chief executive officer directly owned 20,609 shares in the company, valued at $9,758,773.68. The trade was a 50.27% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Alex Norstrom sold 5,436 shares of the business's stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $479.51, for a total value 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 ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.40% of the company's stock.

Spotify Technology Stock Performance

Spotify Technology stock opened at $536.99 on Tuesday. The business's 50-day simple moving average is $496.86 and its 200-day simple moving average is $555.97. The firm has a market capitalization of $110.56 billion, a PE ratio of 55.70, a PEG ratio of 1.18 and a beta of 1.70. 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 quarterly earnings data on Wednesday, February 11th. The company reported $5.16 EPS for the quarter, topping analysts' consensus estimates of $3.16 by $2.00. The business had revenue of $5.32 billion for the quarter, compared to analyst estimates of $5.14 billion. Spotify Technology had a return on equity of 31.35% and a net margin of 13.16%.The firm's revenue for the quarter was up 6.8% on a year-over-year basis. During the same period in the previous year, the company posted $1.88 earnings per share. Research analysts forecast that Spotify Technology will post 15.55 earnings per share for the current year.

Wall Street Analyst Weigh In

SPOT has been the topic of a number of recent research reports. Daiwa Securities Group initiated coverage on Spotify Technology in a report on Thursday, March 26th. They issued an "outperform" rating and a $535.00 target price on the stock. UBS Group decreased their target price on Spotify Technology from $850.00 to $800.00 and set a "buy" rating on the stock in a report on Friday, January 9th. Wells Fargo & Company lowered their price target on Spotify Technology from $650.00 to $640.00 and set an "overweight" rating on the stock in a report on Monday, April 13th. Cantor Fitzgerald lowered their price target on Spotify Technology from $615.00 to $525.00 and set a "neutral" rating on the stock in a report on Wednesday, February 11th. Finally, Guggenheim lowered their price target on Spotify Technology from $720.00 to $600.00 and set a "buy" rating on the stock in a report on Tuesday, February 24th. Two research analysts have rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating and seven have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Spotify Technology has an average rating of "Moderate Buy" and a consensus price target of $691.21.

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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