Southpoint Capital Advisors LP Acquires Shares of 400,000 Spotify Technology $SPOT

Key Points

• Southpoint Capital Advisors acquired 400,000 Spotify shares worth approximately $194 million, making Spotify about 4% of its portfolio and its 10th-largest holding. Institutional investors collectively own 84.09% of the company.
• Spotify exceeded quarterly expectations, reporting $4.04 in EPS versus the $3.41 consensus and $5.25 billion in revenue, up 8.2% year over year. Shares opened at $495.05, while analysts maintain a “Moderate Buy” consensus with an average price target of $630.70.
• Spotify insiders have been net sellers recently, with insiders selling 111,442 shares valued at approximately $54.8 million over the past three months; company insiders own 0.40% of the stock.

Southpoint Capital Advisors LP bought a new position in shares of Spotify Technology (NYSE:SPOT - Free Report) during the 1st quarter, according to the company in its most recent disclosure with the SEC. The fund bought 400,000 shares of the company's stock, valued at approximately $193,964,000. Spotify Technology comprises approximately 4.0% of Southpoint Capital Advisors LP's investment portfolio, making the stock its 10th biggest position. Southpoint Capital Advisors LP owned approximately 0.19% of Spotify Technology at the end of the most recent quarter.

Other large investors have also modified their holdings of the company. Kemnay Advisory Services Inc. purchased a new position in shares of Spotify Technology in the fourth quarter worth about $32,000. Portus Wealth Advisors LLC acquired a new position in Spotify Technology during the first quarter worth about $32,000. Whipplewood Advisors LLC grew its stake in Spotify Technology by 423.1% during the 1st quarter. Whipplewood Advisors LLC now owns 68 shares of the company's stock valued at $33,000 after acquiring an additional 55 shares in the last quarter. Palladiem LLC purchased a new stake in Spotify Technology during the 1st quarter valued at about $34,000. Finally, JPL Wealth Management LLC purchased a new stake in Spotify Technology during the 3rd quarter valued at about $35,000. Hedge funds and other institutional investors own 84.09% of the company's stock.

Spotify Technology Stock Up 2.6%

Shares of Spotify Technology stock opened at $495.05 on Tuesday. The firm has a market cap of $101.92 billion, a PE ratio of 39.45, a price-to-earnings-growth ratio of 1.19 and a beta of 1.56. Spotify Technology has a 52 week low of $405.00 and a 52 week high of $748.30. The business's fifty day simple moving average is $482.63 and its 200-day simple moving average is $487.08.

Spotify Technology (NYSE:SPOT - Get Free Report) last issued its quarterly earnings data 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. The firm had revenue of $5.25 billion during the quarter, compared to the consensus estimate of $5.23 billion. Spotify Technology had a return on equity of 35.73% and a net margin of 15.56%.The company's quarterly revenue was up 8.2% on a year-over-year basis. During the same period last year, the company earned $1.07 EPS. As a group, equities analysts expect that Spotify Technology will post 14.51 earnings per share for the current year.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on SPOT. Barclays raised their target price on shares of Spotify Technology from $500.00 to $565.00 and gave the stock an "overweight" rating in a research note on Friday, May 22nd. Pivotal Research cut their price target on Spotify Technology from $420.00 to $400.00 and set a "hold" rating for the company in a report on Wednesday, April 29th. The Goldman Sachs Group reduced their price objective on Spotify Technology from $670.00 to $600.00 and set a "buy" rating on the stock in a research report on Wednesday, April 29th. UBS Group lowered their price objective on Spotify Technology from $735.00 to $690.00 and set a "buy" rating on the stock in a research note on Friday, July 10th. Finally, Wells Fargo & Company lowered their price objective on Spotify Technology from $600.00 to $570.00 and set an "overweight" rating on the stock in a research note on Thursday, July 9th. Two investment analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat.com, Spotify Technology has a consensus rating of "Moderate Buy" and an average price target of $630.70.

Insider Buying and Selling

In other Spotify Technology news, Director Thomas O. Staggs sold 5,477 shares of Spotify Technology stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $526.00, for a total transaction of $2,880,902.00. Following the completion of the sale, the director directly owned 3,619 shares in the company, valued at $1,903,594. This trade represents a 60.21% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Alex Norstrom sold 5,436 shares of Spotify Technology stock in a transaction dated Monday, July 6th. The shares were sold at an average price of $480.86, for a total transaction of $2,613,954.96. Following the sale, the chief executive officer owned 67,582 shares of the company's stock, valued at approximately $32,497,480.52. This represents a 7.44% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 111,442 shares of company stock valued at $54,757,553 over the last three months. Company insiders own 0.40% of the company's stock.

Spotify Technology 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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