Spotify Technology $SPOT Shares Sold by Bank of New York Mellon Corp

Key Points

• Bank of New York Mellon cut its Spotify stake by 14.2% in the first quarter, selling 111,794 shares and leaving it with 673,341 shares valued at about $326.5 million.
• Institutional ownership remains very high, with hedge funds and large investors holding 84.09% of Spotify stock; several firms, including Norges Bank, UBS AM, and Coatue, also made large buys or increased positions.
• Spotify’s analyst outlook is still mostly positive: the stock has a Moderate Buy consensus rating with a target price of $638.58, even as some firms trimmed price targets and insiders sold shares for tax-withholding reasons.

Bank of New York Mellon Corp decreased its holdings in shares of Spotify Technology (NYSE:SPOT - Free Report) by 14.2% in the 1st quarter, according to its most recent Form 13F filing with the SEC. The firm owned 673,341 shares of the company's stock after selling 111,794 shares during the period. Bank of New York Mellon Corp owned approximately 0.33% of Spotify Technology worth $326,510,000 at the end of the most recent quarter.

Several other institutional investors have also recently added to or reduced their stakes in the stock. Norges Bank purchased a new position in shares of Spotify Technology in the 4th quarter valued at approximately $711,460,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in shares of Spotify Technology by 1,382.3% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,247,182 shares of the company's stock worth $724,251,000 after purchasing an additional 1,163,045 shares during the period. Coatue Management LLC lifted its holdings in shares of Spotify Technology by 35.9% during the fourth quarter. Coatue Management LLC now owns 2,450,881 shares of the company's stock worth $1,423,251,000 after purchasing an additional 647,708 shares during the period. National Pension Service purchased a new position in Spotify Technology in the 4th quarter valued at $316,278,000. Finally, Swedbank AB grew its position in Spotify Technology by 37.9% in the 4th quarter. Swedbank AB now owns 1,616,321 shares of the company's stock valued at $938,614,000 after buying an additional 444,162 shares during the last quarter. Institutional investors and hedge funds own 84.09% of the company's stock.

Insiders Place Their Bets

In related news, CEO Gustav Soderstrom sold 20,833 shares of the 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 sale, the chief executive officer directly owned 20,259 shares of the company's stock, valued at approximately $9,692,918.55. This represents a 50.70% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Alex Norstrom sold 5,436 shares of the stock in a transaction that occurred on 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 completion of the sale, the chief executive officer owned 67,582 shares in the company, valued at $32,497,480.52. This represents a 7.44% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 111,442 shares of company stock worth $54,757,553. 0.40% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on SPOT. Daiwa Securities Group started coverage on Spotify Technology in a report on Thursday, March 26th. They issued an "outperform" rating and a $535.00 price objective on the stock. Wells Fargo & Company reduced their price target on Spotify Technology from $600.00 to $570.00 and set an "overweight" rating for the company in a report on Thursday, July 9th. The Goldman Sachs Group decreased their price target on Spotify Technology from $670.00 to $600.00 and set a "buy" rating on the stock in a research note on Wednesday, April 29th. Rosenblatt Securities dropped their price objective on Spotify Technology from $534.00 to $531.00 and set a "neutral" rating on the stock in a report on Thursday, July 9th. Finally, Wall Street Zen upgraded Spotify Technology from a "hold" rating to a "buy" rating in a research report on Sunday, July 12th. Two investment analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating and six have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $638.58.

Key Stories 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

Spotify Technology Price Performance

NYSE SPOT opened at $478.86 on Friday. Spotify Technology has a 1-year low of $405.00 and a 1-year high of $748.30. The company has a market capitalization of $98.59 billion, a P/E ratio of 38.16, a PEG ratio of 1.18 and a beta of 1.56. The business has a 50 day moving average price of $476.38 and a 200 day moving average price of $491.73.

Spotify Technology (NYSE:SPOT - Get Free Report) last posted its earnings results on Tuesday, April 28th. The company reported $4.04 EPS for the quarter, topping analysts' consensus estimates of $3.41 by $0.63. The company 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%.Spotify Technology's quarterly revenue was up 8.2% compared to the same quarter last year. During the same period in the previous year, the business earned $1.07 earnings per share. On average, research analysts expect that Spotify Technology will post 14.5 earnings per share for the current fiscal year.

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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