Spotify Technology $SPOT Shares Sold by Arrowstreet Capital Limited Partnership

Key Points

• Arrowstreet Capital cut its Spotify stake by 76.4% in the first quarter, selling 970,105 shares and leaving it with 300,309 shares valued at about $145.6 million.
• Spotify reported strong quarterly results, with EPS of $4.04 beating estimates and revenue of $5.25 billion, up 8.2% year over year.
• Wall Street remains broadly constructive on the stock, with a Moderate Buy consensus and an average price target of $630.70, though some firms recently trimmed their targets.

Arrowstreet Capital Limited Partnership lessened its stake in Spotify Technology (NYSE:SPOT - Free Report) by 76.4% during the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 300,309 shares of the company's stock after selling 970,105 shares during the quarter. Arrowstreet Capital Limited Partnership owned about 0.15% of Spotify Technology worth $145,623,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Quadcap Wealth Management LLC raised its holdings in Spotify Technology by 5.7% in the third quarter. Quadcap Wealth Management LLC now owns 295 shares of the company's stock valued at $206,000 after buying an additional 16 shares during the period. Objectivity Squared LLC raised its stake in shares of Spotify Technology by 0.8% in the 4th quarter. Objectivity Squared LLC now owns 2,582 shares of the company's stock valued at $1,499,000 after acquiring an additional 20 shares during the period. Greenleaf Trust raised its stake in shares of Spotify Technology by 5.8% in the 4th quarter. Greenleaf Trust now owns 455 shares of the company's stock valued at $264,000 after acquiring an additional 25 shares during the period. Condor Capital Management lifted its holdings in shares of Spotify Technology by 2.6% during the 4th quarter. Condor Capital Management now owns 990 shares of the company's stock valued at $575,000 after acquiring an additional 25 shares in the last quarter. Finally, Brookstone Capital Management boosted its position in Spotify Technology by 1.6% during the 4th quarter. Brookstone Capital Management now owns 1,698 shares of the company's stock worth $986,000 after purchasing an additional 27 shares during the period. Institutional investors and hedge funds own 84.09% of the company's stock.

Spotify Technology Stock Performance

NYSE SPOT opened at $483.27 on Friday. Spotify Technology has a one year low of $405.00 and a one year high of $748.30. The company has a 50-day simple moving average of $481.62 and a 200-day simple moving average of $488.36. The firm has a market capitalization of $99.49 billion, a PE ratio of 38.51, a price-to-earnings-growth ratio of 1.19 and a beta of 1.56.

Spotify Technology (NYSE:SPOT - Get Free Report) last announced its quarterly earnings results on Tuesday, April 28th. The company reported $4.04 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.41 by $0.63. The business had revenue of $5.25 billion for 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 business's revenue was up 8.2% on a year-over-year basis. During the same quarter last year, the business posted $1.07 EPS. Equities analysts forecast that Spotify Technology will post 14.51 earnings per share for the current year.

Analyst Ratings Changes

A number of research analysts have commented on SPOT shares. Wells Fargo & Company reduced 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. Wall Street Zen downgraded Spotify Technology from a "buy" rating to a "hold" rating in a report on Saturday. Guggenheim reduced their price target on Spotify Technology from $600.00 to $565.00 and set a "buy" rating on the stock in a research report on Wednesday, April 29th. Citizens Jmp upped their price target on Spotify Technology from $600.00 to $625.00 and gave the stock a "market outperform" rating in a report on Friday, May 22nd. Finally, The Goldman Sachs Group lowered their price objective on shares of Spotify Technology from $670.00 to $600.00 and set a "buy" rating for the company in a research report on Wednesday, April 29th. Two analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat, Spotify Technology presently has a consensus rating of "Moderate Buy" and an average target price of $630.70.

Spotify Technology News Summary

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

• Positive Sentiment: Several recent articles frame Spotify as a potentially attractive value or buy candidate compared with peers, which can support sentiment around the stock. XYZ or SPOT: Which Is the Better Value Stock Right Now?
• Positive Sentiment: Spotify is being highlighted as a trending stock with strong analyst interest, reinforcing the idea that Wall Street remains broadly constructive on the name. Is It Worth Investing in Spotify (SPOT) Based on Wall Street's Bullish Views?
• Neutral Sentiment: Benchmark reportedly lowered its expectations for Spotify, which could temper enthusiasm but does not appear severe enough on its own to dominate trading. Benchmark Has Lowered Expectations for Spotify Technology NYSE: SPOT Stock Price
• Negative Sentiment: A report that Spotify deleted more than 500,000 fake streams tied to Malcolm Todd has raised fraud and integrity concerns, which could be viewed as a reputational headwind for the platform. EXCLUSIVE: Spotify Deleted 500,000 Fake Malcolm Todd Streams. A Former SEC Lawyer Says the Bots May Have Committed a Federal Crime

Insider Buying and Selling at Spotify Technology

In related news, CEO Gustav Soderstrom sold 20,833 shares of the company's stock in a transaction dated Monday, July 6th. The shares were sold at an average price of $478.45, for a total value of $9,967,548.85. Following the completion of the sale, the chief executive officer owned 20,259 shares of the company's stock, valued at $9,692,918.55. This represents a 50.70% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Thomas O. Staggs sold 5,477 shares of the 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 transaction, the director owned 3,619 shares of the company's stock, valued at $1,903,594. This represents a 60.21% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 111,442 shares of company stock valued at $54,757,553. 0.40% of the stock is currently owned by insiders.

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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