Spotify Technology $SPOT Shares Sold by Pinnbrook Capital Management LP

Key Points

• Pinnbrook Capital Management sharply cut its Spotify stake by 95.2% in the fourth quarter, leaving it with just 857 shares worth about $498,000.
• Spotify’s latest quarterly results beat expectations, with EPS of $4.04 versus the $3.41 estimate and revenue of $5.25 billion, up 8.2% year over year.
• Analysts remain broadly constructive on the stock despite some target cuts, with Spotify holding a Moderate Buy consensus and an average price target of $645.77.

Pinnbrook Capital Management LP trimmed its stake in shares of Spotify Technology (NYSE:SPOT - Free Report) by 95.2% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 857 shares of the company's stock after selling 16,838 shares during the quarter. Pinnbrook Capital Management LP's holdings in Spotify Technology were worth $498,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently bought and sold shares of SPOT. Capital World Investors grew its stake in Spotify Technology by 40.7% during the 3rd quarter. Capital World Investors now owns 2,730,713 shares of the company's stock worth $1,906,260,000 after purchasing an additional 789,755 shares in the last quarter. Capital Research Global Investors acquired a new position in Spotify Technology during the 3rd quarter worth $512,190,000. Principal Financial Group Inc. grew its stake in Spotify Technology by 3,534.9% during the 3rd quarter. Principal Financial Group Inc. now owns 571,474 shares of the company's stock worth $398,889,000 after purchasing an additional 555,752 shares in the last quarter. Swedbank AB grew its stake in Spotify Technology by 37.9% during the 4th quarter. Swedbank AB now owns 1,616,321 shares of the company's stock worth $938,614,000 after purchasing an additional 444,162 shares in the last quarter. Finally, Alliancebernstein L.P. grew its stake in Spotify Technology by 157.5% during the 3rd quarter. Alliancebernstein L.P. now owns 699,930 shares of the company's stock worth $488,551,000 after purchasing an additional 428,156 shares in the last quarter. 84.09% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In other news, CEO Alex Norstrom sold 5,436 shares of the business's stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $479.51, for a total value of $2,606,616.36. Following the completion of the sale, the chief executive officer directly owned 69,989 shares of the company's stock, valued at approximately $33,560,425.39. The trade was a 7.21% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Gustav Soderstrom sold 20,833 shares of the business's stock in a transaction dated Tuesday, May 5th. The shares were sold at an average price of $430.72, for a total value of $8,973,189.76. Following the completion of the sale, the chief executive officer directly owned 20,492 shares of the company's stock, valued at $8,826,314.24. The trade was a 50.41% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 47,102 shares of company stock valued at $21,444,648 over the last three months. Company insiders own 0.40% of the company's stock.

Spotify Technology Stock Performance

NYSE:SPOT opened at $490.66 on Friday. The stock has a 50-day simple moving average of $479.71 and a 200-day simple moving average of $523.90. The stock has a market cap of $101.02 billion, a P/E ratio of 39.10, a P/E/G ratio of 1.05 and a beta of 1.55. 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, 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 during the quarter, compared to analysts' expectations of $5.23 billion. Spotify Technology had a return on equity of 35.73% and a net margin of 15.56%.The business's quarterly revenue was up 8.2% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.07 EPS. On average, equities research analysts predict that Spotify Technology will post 14.87 EPS for the current year.

Wall Street Analysts Forecast Growth

SPOT has been the subject of several analyst reports. Moffett Nathanson initiated coverage on Spotify Technology in a research note on Tuesday, January 27th. They set a "neutral" rating and a $487.00 target price for the company. Canaccord Genuity Group lowered their price objective on Spotify Technology from $750.00 to $720.00 and set a "buy" rating for the company in a research report on Wednesday, April 29th. UBS Group lowered their price objective on Spotify Technology from $760.00 to $735.00 and set a "buy" rating for the company in a research report on Thursday, April 30th. Rosenblatt Securities lowered their price objective on Spotify Technology from $670.00 to $500.00 and set a "buy" rating for the company in a research report on Wednesday, April 29th. Finally, Wall Street Zen cut Spotify Technology from a "buy" rating to a "hold" rating in a research report on Saturday, May 9th. Two research analysts have rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat, Spotify Technology currently has an average rating of "Moderate Buy" and a consensus price target of $645.77.

Key Spotify Technology News

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

• Positive Sentiment: Spotify and Universal Music Group announced licensing agreements that will let Premium users create “responsible” AI-generated covers and remixes, with participating artists and songwriters set to share in the revenue. Spotify strikes deal with Universal Music to let premium users create AI covers, remixes
• Positive Sentiment: At its first Investor Day since 2022, Spotify updated its 2030 outlook, targeting mid-teens annual revenue growth and gross margins of 35% to 40%, signaling stronger profitability and cash-flow potential. Spotify stock pops on guidance at first investor day since 2022
• Positive Sentiment: Spotify announced new fan-engagement features, including reserving concert tickets for top fans, which could improve retention and create additional value for artists and subscribers. Spotify Will Set Aside Concert Tickets for Artists' Superfans
• Positive Sentiment: The company also introduced additional AI tools for podcasts and audiobooks, broadening its content-creation ecosystem and potentially opening new subscription and creator revenue streams. Spotify adds AI-powered Q&A and briefing generation features to podcasts
• Neutral Sentiment: Canada is changing rules that could raise costs for Spotify and other streaming platforms, but this appears to be a secondary headline compared with the Investor Day and AI announcements. Netflix, Spotify to face higher costs as Canada changes rules
• Negative Sentiment: A law firm also said it is investigating claims on behalf of Spotify investors, which could add legal overhang if the probe develops further. INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Spotify Technology S.A. - SPOT

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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