Spotify Technology $SPOT Shares Sold by WCM Investment Management LLC

Key Points

• WCM Investment Management LLC trimmed its Spotify stake by 1.7% in the first quarter, but still held 2.42 million shares worth about $1.15 billion. Spotify remains one of the firm’s largest positions.
• Spotify insiders have been selling shares recently, including Director Christopher P. Marshall and CEO Gustav Soderstrom. Over the last 90 days, insiders sold 111,442 shares valued at about $54.8 million.
• The stock was trading around $478.86 after Spotify reported stronger-than-expected quarterly results, with EPS of $4.04 versus estimates of $3.41 and revenue up 8.2% year over year. Analysts remain broadly positive, with an average rating of Moderate Buy.

WCM Investment Management LLC decreased its holdings in shares of Spotify Technology (NYSE:SPOT - Free Report) by 1.7% during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 2,415,077 shares of the company's stock after selling 40,649 shares during the period. Spotify Technology comprises approximately 2.6% of WCM Investment Management LLC's investment portfolio, making the stock its 14th largest holding. WCM Investment Management LLC owned approximately 1.17% of Spotify Technology worth $1,147,162,000 as of its most recent SEC filing.

A number of other institutional investors have also recently added to or reduced their stakes in the stock. Portus Wealth Advisors LLC acquired a new stake in shares of Spotify Technology in the first quarter valued at about $32,000. Kemnay Advisory Services Inc. purchased a new stake in shares of Spotify Technology during the fourth quarter worth about $32,000. Whipplewood Advisors LLC raised its position in shares of Spotify Technology by 423.1% during the 1st quarter. Whipplewood Advisors LLC now owns 68 shares of the company's stock worth $33,000 after purchasing an additional 55 shares during the last quarter. Palladiem LLC acquired a new position in shares of Spotify Technology during the 1st quarter worth about $34,000. Finally, Newbridge Financial Services Group Inc. purchased a new position in Spotify Technology in the 4th quarter valued at about $35,000. Institutional investors and hedge funds own 84.09% of the company's stock.

Insider Transactions at Spotify Technology

In other Spotify Technology news, Director Christopher P. Marshall sold 2,650 shares of the business's stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $519.86, for a total transaction of $1,377,629.00. Following the transaction, the director owned 4,039 shares of the company's stock, valued at approximately $2,099,714.54. The trade was a 39.62% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Gustav Soderstrom sold 20,833 shares of the company's stock in a transaction on 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 approximately $9,692,918.55. The trade was a 50.70% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 111,442 shares of company stock valued at $54,757,553. 0.40% of the stock is currently owned by company insiders.

Spotify Technology Trading Up 0.2%

Shares of NYSE SPOT opened at $478.86 on Monday. The stock has a market cap of $98.59 billion, a PE ratio of 38.16, a P/E/G ratio of 1.18 and a beta of 1.56. Spotify Technology has a 12-month low of $405.00 and a 12-month high of $748.30. The company has a 50-day moving average of $476.38 and a 200 day moving average of $491.10.

Spotify Technology (NYSE:SPOT - Get Free Report) last released its earnings results on Tuesday, April 28th. The company reported $4.04 earnings per share for the quarter, topping analysts' consensus estimates of $3.41 by $0.63. The business had revenue of $5.25 billion for the quarter, compared to analyst estimates of $5.23 billion. Spotify Technology had a net margin of 15.56% and a return on equity of 35.73%. The business's revenue was up 8.2% on a year-over-year basis. During the same period last year, the company posted $1.07 EPS. On average, sell-side analysts forecast that Spotify Technology will post 14.51 EPS for the current fiscal year.

Key Spotify Technology News

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

Several equities research analysts recently issued reports on SPOT shares. Cantor Fitzgerald lifted their price objective on Spotify Technology from $430.00 to $520.00 and gave the stock a "neutral" rating in a report on Tuesday, May 26th. Wall Street Zen raised Spotify Technology from a "hold" rating to a "buy" rating in a report on Sunday, July 12th. KeyCorp decreased their target price on Spotify Technology from $745.00 to $680.00 and set an "overweight" rating on the stock in a research report on Wednesday, April 29th. Weiss Ratings lowered Spotify Technology from a "hold (c+)" rating to a "hold (c)" rating in a research note on Tuesday, June 23rd. Finally, Daiwa Securities Group assumed coverage on Spotify Technology in a research report on Thursday, March 26th. They set an "outperform" rating and a $535.00 price target for the company. Two investment analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating and six have given a Hold rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $638.58.

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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