SEB Asset Management AB Invests $36.22 Million in Spotify Technology $SPOT

Key Points

• SEB Asset Management AB opened a new position in Spotify during the first quarter, buying 74,688 shares valued at about $36.2 million.
• Spotify is seeing continued interest from major institutions, with hedge funds and other investors owning 84.09% of the stock despite recent insider selling.
• The company’s latest quarter beat expectations, with EPS of $4.04 and revenue of $5.25 billion, while analysts still largely rate the stock a Moderate Buy.

SEB Asset Management AB purchased a new position in Spotify Technology (NYSE:SPOT - Free Report) during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund purchased 74,688 shares of the company's stock, valued at approximately $36,217,000.

Other institutional investors also recently bought and sold shares of the company. JPL Wealth Management LLC bought a new position in shares of Spotify Technology in the third quarter worth approximately $35,000. Kemnay Advisory Services Inc. purchased a new stake in shares of Spotify Technology during the fourth quarter valued at approximately $32,000. Newbridge Financial Services Group Inc. bought a new stake in shares of Spotify Technology during the fourth quarter valued at approximately $35,000. Osbon Capital Management LLC purchased a new position in Spotify Technology in the 4th quarter worth approximately $35,000. Finally, Wilmington Savings Fund Society FSB raised its holdings in Spotify Technology by 85.7% in the 4th quarter. Wilmington Savings Fund Society FSB now owns 65 shares of the company's stock worth $38,000 after acquiring an additional 30 shares during the last quarter. 84.09% of the stock is owned by hedge funds and other institutional investors.

Spotify Technology News Summary

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

• Positive Sentiment: Spotify unveiled a new AI assistant that lets users find songs, build playlists, and explore podcasts using natural language, which could improve engagement and support premium user growth. Spotify's new AI assistant lets you find songs, create playlists and explore podcasts using natural language
• Positive Sentiment: Jefferies reiterated a Buy rating and a $600 price target ahead of earnings, signaling continued confidence in Spotify’s long-term growth and AI-related product roadmap. Spotify seen delivering steady Q2 results as investors await AI remixing updates
• Neutral Sentiment: Spotify was highlighted in an investor letter as having robust results, suggesting institutional investors still see the company as a strong operator despite recent market noise. Market Overlooked Spotify Technology S.A. (SPOT) Despite Robust Results
• Neutral Sentiment: Spotify partnered with Back Market for a back-to-school promotion, expanding brand visibility but with limited direct financial impact. Back Market Kicks Off Back-to-School Season with Survey Revealing How Parents Are Redefining the Smart Tech Purchase - And Debuting New Partnerships with Duolingo and Spotify
• Negative Sentiment: Zacks said Spotify’s growth story remains intact, but warned that a rich valuation, high royalty costs, and intensifying competition make the risk/reward less attractive. Spotify's Growth Story Is Intact, but Faces Valuation Threat
• Negative Sentiment: Spotify also faced criticism after Lorde slammed the company over sloppy AI-generated song descriptions, adding a reputational headwind around its AI rollout. Lorde slams Spotify over sloppy AI-generated song descriptions

Insider Buying and Selling

In other Spotify Technology news, CEO Alex Norstrom sold 5,436 shares of the firm's stock in a transaction dated Monday, July 6th. The stock was sold at an average price of $480.86, for a total value of $2,613,954.96. Following the transaction, the chief executive officer directly owned 67,582 shares of the company's stock, valued at approximately $32,497,480.52. This trade represents a 7.44% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Christopher P. Marshall sold 2,650 shares of the firm's stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $519.86, for a total value of $1,377,629.00. Following the completion of the transaction, the director directly owned 4,039 shares in the company, valued at $2,099,714.54. The trade was a 39.62% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 111,442 shares of company stock valued at $54,757,553 over the last ninety days. 0.40% of the stock is owned by insiders.

Spotify Technology Trading Up 0.2%

NYSE:SPOT opened at $478.86 on Monday. The company has a market cap of $98.59 billion, a PE ratio of 38.16, a price-to-earnings-growth ratio of 1.18 and a beta of 1.56. The company has a 50 day simple moving average of $476.38 and a two-hundred day simple moving average of $491.10. Spotify Technology has a 12 month low of $405.00 and a 12 month high of $748.30.

Spotify Technology (NYSE:SPOT - Get Free Report) last released its quarterly earnings results on Tuesday, April 28th. The company reported $4.04 earnings per share 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 analysts' expectations 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% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.07 EPS. Research analysts forecast that Spotify Technology will post 14.51 earnings per share for the current year.

Wall Street Analyst Weigh In

Several brokerages have commented on SPOT. Benchmark cut their target price on Spotify Technology from $760.00 to $695.00 and set a "buy" rating on the stock in a research note on Wednesday, April 29th. Wall Street Zen upgraded Spotify Technology from a "hold" rating to a "buy" rating in a research note on Sunday, July 12th. UBS Group lowered their price target on Spotify Technology from $735.00 to $690.00 and set a "buy" rating on the stock in a report on Friday, July 10th. Pivotal Research dropped their price objective 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. Finally, Cantor Fitzgerald lifted their price objective on Spotify Technology from $430.00 to $520.00 and gave the stock a "neutral" rating in a report on Tuesday, May 26th. Two equities research analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $638.58.

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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