Spotify Technology $SPOT Shares Acquired by Mediolanum International Funds Ltd

Key Points

• Mediolanum International Funds Ltd boosted its Spotify stake by 282.3% in the first quarter, buying 74,221 additional shares to bring its total to 100,512 shares worth about $47.7 million.
• Spotify’s recent operating results were strong, with its latest quarter showing EPS of $4.04 versus expectations of $3.41 and revenue of $5.25 billion, up 8.2% year over year.
• Investor sentiment is mixed: analysts largely remain positive with a Moderate Buy consensus, but some warn about Spotify’s high valuation, royalty costs, competition, and AI-related reputation risks.

Mediolanum International Funds Ltd increased its stake in Spotify Technology (NYSE:SPOT - Free Report) by 282.3% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 100,512 shares of the company's stock after buying an additional 74,221 shares during the period. Mediolanum International Funds Ltd's holdings in Spotify Technology were worth $47,743,000 at the end of the most recent reporting period.

Other institutional investors have also recently added to or reduced their stakes in the company. Sivia Capital Partners LLC acquired a new position in Spotify Technology during the 2nd quarter worth $312,000. Jump Financial LLC raised its stake 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 valued at $869,000 after purchasing an additional 56 shares in the last quarter. Cary Street Partners Financial LLC bought a new position in shares of Spotify Technology during the second quarter worth about $178,000. NewEdge Advisors LLC lifted its position in shares of Spotify Technology by 36.9% during the second quarter. NewEdge Advisors LLC now owns 12,650 shares of the company's stock worth $9,707,000 after purchasing an additional 3,412 shares during the last quarter. Finally, Glenview Trust co acquired a new position in Spotify Technology in the second quarter worth about $298,000. 84.09% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Spotify Technology

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

Analyst Upgrades and Downgrades

SPOT has been the subject of several research analyst reports. Weiss Ratings lowered Spotify Technology from a "hold (c+)" rating to a "hold (c)" rating in a report on Tuesday, June 23rd. Benchmark reduced their target price on Spotify Technology from $760.00 to $695.00 and set a "buy" rating on the stock in a report on Wednesday, April 29th. Guggenheim decreased their target price on Spotify Technology from $600.00 to $565.00 and set a "buy" rating for the company in a research report on Wednesday, April 29th. UBS Group lowered their price target on Spotify Technology from $735.00 to $690.00 and set a "buy" rating for the company in a report on Friday, July 10th. Finally, The Goldman Sachs Group dropped their price target 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. Two equities research analysts have rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and six have given a Hold rating to the company's stock. Based on data from MarketBeat, Spotify Technology has an average rating of "Moderate Buy" and a consensus target price of $638.58.

Spotify Technology Stock Up 0.6%

SPOT opened at $478.86 on Friday. The firm has a market cap of $98.59 billion, a price-to-earnings ratio of 38.16, a price-to-earnings-growth ratio of 1.18 and a beta of 1.56. Spotify Technology has a fifty-two week low of $405.00 and a fifty-two week high of $748.30. The company's 50-day moving average price is $476.38 and its 200 day moving average price is $491.73.

Spotify Technology (NYSE:SPOT - Get Free Report) last issued 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. Spotify Technology had a net margin of 15.56% and a return on equity of 35.73%. The firm had revenue of $5.25 billion for the quarter, compared to analysts' expectations of $5.23 billion. During the same quarter last year, the company posted $1.07 earnings per share. Spotify Technology's revenue was up 8.2% on a year-over-year basis. Research analysts anticipate that Spotify Technology will post 14.51 earnings per share for the current year.

Insiders Place Their Bets

In related news, CEO Gustav Soderstrom sold 20,833 shares of the company's stock in a transaction on Monday, July 6th. The stock was sold at an average price of $478.45, for a total transaction of $9,967,548.85. Following the completion of the transaction, the chief executive officer directly owned 20,259 shares in the company, valued at $9,692,918.55. This represents a 50.70% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available 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 stock in a transaction on 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 sale, the director directly owned 4,039 shares in the company, valued at $2,099,714.54. This represents a 39.62% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 111,442 shares of company stock worth $54,757,553. 0.40% of the stock is currently owned by insiders.

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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