Spotify Technology $SPOT Position Cut by OPTIMAS CAPITAL Ltd

Key Points

• OPTIMAS CAPITAL Ltd cut its Spotify Technology position by 47.8% in the fourth quarter, leaving it with 2,560 shares worth about $1.49 million.
• Spotify reported strong quarterly results, with EPS of $4.04 beating estimates and revenue of $5.25 billion slightly ahead of forecasts. Revenue also rose 8.2% year over year.
• Insider selling and mixed analyst moves were notable: two directors sold shares recently, while analysts remain generally positive with a Moderate Buy consensus and a target price around $655.92.

OPTIMAS CAPITAL Ltd decreased its position in shares of Spotify Technology (NYSE:SPOT - Free Report) by 47.8% in the 4th quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 2,560 shares of the company's stock after selling 2,340 shares during the quarter. Spotify Technology comprises about 1.6% of OPTIMAS CAPITAL Ltd's investment portfolio, making the stock its 15th largest holding. OPTIMAS CAPITAL Ltd's holdings in Spotify Technology were worth $1,487,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently modified their holdings of the company. Bessemer Group Inc. boosted its holdings in shares of Spotify Technology by 35.1% during the third quarter. Bessemer Group Inc. now owns 682,639 shares of the company's stock valued at $476,483,000 after acquiring an additional 177,310 shares during the period. Principal Financial Group Inc. boosted its holdings in shares of Spotify Technology by 12.9% during the fourth quarter. Principal Financial Group Inc. now owns 645,196 shares of the company's stock valued at $374,672,000 after acquiring an additional 73,722 shares during the period. Vanguard Group Inc. boosted its holdings in shares of Spotify Technology by 2.5% during the third quarter. Vanguard Group Inc. now owns 1,005,882 shares of the company's stock valued at $702,106,000 after acquiring an additional 24,199 shares during the period. City Holding Co. boosted its holdings in shares of Spotify Technology by 2,515.9% during the fourth quarter. City Holding Co. now owns 5,598 shares of the company's stock valued at $3,251,000 after acquiring an additional 5,384 shares during the period. Finally, ARK Investment Management LLC boosted its holdings in shares of Spotify Technology by 8.2% during the third quarter. ARK Investment Management LLC now owns 80,285 shares of the company's stock valued at $56,039,000 after acquiring an additional 6,100 shares during the period. Institutional investors and hedge funds own 84.09% of the company's stock.

Spotify Technology Stock Performance

Shares of SPOT opened at $492.50 on Friday. The firm has a market capitalization of $101.40 billion, a price-to-earnings ratio of 39.24, a price-to-earnings-growth ratio of 1.19 and a beta of 1.56. Spotify Technology has a one year low of $405.00 and a one year high of $785.00. The stock's fifty day moving average is $480.53 and its 200-day moving average is $515.21.

Spotify Technology (NYSE:SPOT - Get Free Report) last released 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. 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%.Spotify Technology's revenue was up 8.2% compared to the same quarter last year. During the same period in the previous year, the company earned $1.07 earnings per share. Analysts forecast that Spotify Technology will post 14.72 EPS for the current fiscal year.

Insider Activity

In related news, Director Christopher P. Marshall sold 2,650 shares of Spotify Technology stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $519.86, for a total transaction of $1,377,629.00. Following the transaction, the director directly owned 4,039 shares of the company's stock, valued at $2,099,714.54. The trade was a 39.62% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Thomas O. Staggs sold 5,477 shares of Spotify Technology stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $526.00, for a total value of $2,880,902.00. Following the transaction, the director directly owned 3,619 shares in the company, valued at approximately $1,903,594. The trade was a 60.21% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 111,442 shares of company stock valued at $54,647,508 over the last quarter. Insiders own 0.40% of the company's stock.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on the stock. Cantor Fitzgerald boosted their price target on shares of Spotify Technology from $430.00 to $520.00 and gave the company a "neutral" rating in a report on Tuesday, May 26th. The Goldman Sachs Group lowered their price target on Spotify Technology from $670.00 to $600.00 and set a "buy" rating on the stock in a report on Wednesday, April 29th. Guggenheim lowered their price target on Spotify Technology from $600.00 to $565.00 and set a "buy" rating on the stock in a report on Wednesday, April 29th. JPMorgan Chase & Co. raised their price target on Spotify Technology from $600.00 to $650.00 and gave the company an "overweight" rating in a report on Friday, May 22nd. Finally, Morgan Stanley raised their price target on Spotify Technology from $590.00 to $610.00 and gave the company an "overweight" rating in a report on Friday, May 22nd. Two investment analysts have rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $655.92.

More Spotify Technology News

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

• Positive Sentiment: Spotify is expanding its strategy in Asia, with a report that it is targeting Korea using AI-driven hyper-personalization. That suggests continued investment in product innovation and international growth, which investors may view favorably. Spotify targets Korea with AI hyper-personalization
• Positive Sentiment: Several reports highlighted strong underlying fundamentals after Spotify’s latest earnings, including premium subscriber growth, improved free cash flow, and rising operating income. Those results continue to support the stock’s longer-term bull case. Spotify Stock Will Trade at This Price In a Year
• Neutral Sentiment: Analyst sentiment remains supportive overall, with Spotify carrying a “Moderate Buy” consensus rating. However, some firms recently trimmed price targets, indicating expectations are still high and valuation remains a point of debate. Spotify Technology NYSE: SPOT Given Consensus Recommendation of "Moderate Buy" by Analysts
• Negative Sentiment: CEO Gustav Soderstrom sold about $10.3 million of Spotify stock, continuing a recent pattern of insider selling. While insider sales do not always signal trouble, they can weigh on sentiment if investors worry management sees less upside near current levels. Spotify Technology NYSE: SPOT CEO Sells $10,344,001.16 in Stock

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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