Spotify Technology $SPOT Stake Increased by Swiss National Bank

Key Points

• Swiss National Bank boosted its Spotify stake by 28% in the first quarter, buying 125,240 additional shares and bringing its position to 573,280 shares valued at about $278 million.
• Spotify reported better-than-expected Q1 earnings, with EPS of $4.04 versus $3.41 expected and revenue of $5.25 billion, up 8.2% year over year.
• Wall Street remains broadly constructive, with analysts assigning a Moderate Buy consensus and an average price target of $638.58, though some recent commentary warned about valuation, royalties, and competition.

Swiss National Bank lifted its holdings in Spotify Technology (NYSE:SPOT - Free Report) by 28.0% in the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 573,280 shares of the company's stock after buying an additional 125,240 shares during the period. Swiss National Bank owned about 0.28% of Spotify Technology worth $277,989,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also modified their holdings of the business. JPL Wealth Management LLC acquired a new position in Spotify Technology during the third quarter valued at $35,000. Kemnay Advisory Services Inc. acquired a new stake in Spotify Technology during the 4th quarter worth about $32,000. Newbridge Financial Services Group Inc. purchased a new position in Spotify Technology during the 4th quarter valued at about $35,000. Osbon Capital Management LLC purchased a new position in Spotify Technology during the 4th quarter valued at about $35,000. Finally, Wilmington Savings Fund Society FSB increased its holdings in shares of Spotify Technology by 85.7% in the 4th quarter. Wilmington Savings Fund Society FSB now owns 65 shares of the company's stock valued at $38,000 after purchasing an additional 30 shares during the period. Hedge funds and other institutional investors own 84.09% of the company's stock.

Spotify Technology Stock Performance

Shares of NYSE SPOT opened at $478.86 on Friday. The stock has a market cap of $98.59 billion, a price-to-earnings ratio of 38.16, a PEG ratio of 1.18 and a beta of 1.56. The business has a 50 day simple moving average of $476.38 and a 200 day simple moving average of $491.73. Spotify Technology has a 52 week low of $405.00 and a 52 week high of $748.30.

Spotify Technology (NYSE:SPOT - Get Free Report) last issued its quarterly earnings data on Tuesday, April 28th. The company reported $4.04 earnings per share for the quarter, beating the consensus estimate of $3.41 by $0.63. The firm 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 company's revenue for the quarter was up 8.2% on a year-over-year basis. During the same quarter last year, the firm earned $1.07 earnings per share. On average, analysts predict that Spotify Technology will post 14.51 EPS for the current year.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on SPOT shares. Morgan Stanley increased their price target on shares of Spotify Technology from $590.00 to $610.00 and gave the stock an "overweight" rating in a research report on Friday, May 22nd. Weiss Ratings lowered shares of Spotify Technology from a "hold (c+)" rating to a "hold (c)" rating in a research note on Tuesday, June 23rd. Daiwa Securities Group began coverage on shares of Spotify Technology in a research note on Thursday, March 26th. They set an "outperform" rating and a $535.00 target price for the company. Benchmark lowered their price target on shares of Spotify Technology from $760.00 to $695.00 and set a "buy" rating on the stock in a report on Wednesday, April 29th. Finally, Canaccord Genuity Group dropped their price target on shares of Spotify Technology from $750.00 to $720.00 and set a "buy" rating on the stock in a research note on Wednesday, April 29th. Two research analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating and six have given a Hold rating to the company's stock. Based on data from MarketBeat, Spotify Technology has a consensus rating of "Moderate Buy" and an average 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

Insider Buying and Selling at Spotify Technology

In related news, Director Christopher P. Marshall sold 2,650 shares of the company's stock in a transaction on Tuesday, May 26th. The shares were 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 approximately $2,099,714.54. This represents a 39.62% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, Director Thomas O. Staggs sold 5,477 shares of the stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $526.00, for a total transaction of $2,880,902.00. Following the transaction, the director directly owned 3,619 shares in the company, valued at $1,903,594. The trade was a 60.21% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 111,442 shares of company stock worth $54,757,553 in the last ninety days. Company insiders own 0.40% of the company's stock.

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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