Spotify Technology $SPOT Position Lessened by Tremblant Capital Group

Key Points

• Tremblant Capital Group trimmed its Spotify stake by 5.4% in Q3, selling 4,231 shares to hold 74,822 shares worth $52.226 million, making SPOT its fourth-largest holding (~5.4% of the firm's portfolio).
• Spotify beat expectations for the quarter with EPS of $5.16 versus $3.16 expected and revenue of $5.32B versus $5.14B, yielding a 13.16% net margin and 6.8% year-over-year revenue growth.
• Analyst consensus is a "Moderate Buy" with a $703.87 average target, though recent analyst moves are mixed (e.g., Goldman Sachs upgraded to Buy while other firms cut targets or moved to Hold), indicating divergent views on valuation and outlook.

Tremblant Capital Group trimmed its holdings in Spotify Technology (NYSE:SPOT - Free Report) by 5.4% during the third quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 74,822 shares of the company's stock after selling 4,231 shares during the period. Spotify Technology comprises approximately 5.4% of Tremblant Capital Group's holdings, making the stock its 4th largest holding. Tremblant Capital Group's holdings in Spotify Technology were worth $52,226,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds also recently made changes to their positions in the business. Towarzystwo Funduszy Inwestycyjnych PZU SA boosted its stake in shares of Spotify Technology by 39.2% during the 3rd quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 1,104 shares of the company's stock valued at $771,000 after buying an additional 311 shares during the last quarter. Night Squared LP increased its stake in shares of Spotify Technology by 11.5% in the third quarter. Night Squared LP now owns 4,086 shares of the company's stock worth $2,852,000 after buying an additional 423 shares during the last quarter. Investors Towarzystwo Funduszy Inwestycyjnych Spolka Akcyjna increased its stake in shares of Spotify Technology by 170.0% in the third quarter. Investors Towarzystwo Funduszy Inwestycyjnych Spolka Akcyjna now owns 270 shares of the company's stock worth $188,000 after buying an additional 170 shares during the last quarter. Bank of Hawaii raised its holdings in Spotify Technology by 14.5% in the third quarter. Bank of Hawaii now owns 1,096 shares of the company's stock valued at $765,000 after acquiring an additional 139 shares in the last quarter. Finally, NorthRock Partners LLC boosted its stake in Spotify Technology by 55.4% during the 3rd quarter. NorthRock Partners LLC now owns 970 shares of the company's stock valued at $677,000 after acquiring an additional 346 shares during the last quarter. 84.09% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several brokerages have weighed in on SPOT. Guggenheim decreased their price objective on shares of Spotify Technology from $720.00 to $600.00 and set a "buy" rating for the company in a report on Tuesday, February 24th. The Goldman Sachs Group raised Spotify Technology from a "neutral" rating to a "buy" rating and dropped their price target for the company from $735.00 to $700.00 in a research report on Friday, January 23rd. Moffett Nathanson started coverage on shares of Spotify Technology in a report on Tuesday, January 27th. They issued a "neutral" rating and a $487.00 target price on the stock. Citizens Jmp assumed coverage on Spotify Technology in a research note on Wednesday, December 17th. They issued a "market outperform" rating and a $800.00 target price for the company. Finally, Pivotal Research lowered Spotify Technology from a "buy" rating to a "hold" rating and lowered their target price for the company from $875.00 to $420.00 in a report on Wednesday, February 11th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-four have issued a Buy rating and eight have given a Hold rating to the company. According to data from MarketBeat.com, Spotify Technology has an average rating of "Moderate Buy" and a consensus target price of $703.87.

Spotify Technology Stock Performance

Shares of SPOT opened at $516.14 on Friday. The firm has a fifty day moving average of $502.35 and a 200-day moving average of $596.07. The company has a market cap of $106.26 billion, a price-to-earnings ratio of 53.54, a price-to-earnings-growth ratio of 1.11 and a beta of 1.66. Spotify Technology has a 1 year low of $405.00 and a 1 year high of $785.00.

Spotify Technology (NYSE:SPOT - Get Free Report) last released its quarterly earnings data on Tuesday, February 10th. The company reported $5.16 earnings per share 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 analysts' expectations of $5.14 billion. Spotify Technology had a net margin of 13.16% and a return on equity of 31.35%. The company's revenue for the quarter was up 6.8% compared to the same quarter last year. During the same quarter last year, the company earned $1.88 EPS. Analysts predict that Spotify Technology will post 10.3 EPS for the current year.

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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