Spotify Technology $SPOT Stock Position Lessened by Hyperion Asset Management Ltd

Key Points

• Hyperion Asset Management cut its Spotify position by 24% in the third quarter, selling 25,857 shares and retaining 81,868 shares valued at approximately $39.9 million.
• Spotify reported 13.9% year-over-year revenue growth but missed quarterly EPS and revenue estimates. Premium revenue growth and new paid podcast memberships support the outlook, while advertising weakness remains a concern.
• Wall Street maintains a broadly positive view, with a “Moderate Buy” consensus and an average price target of $610.25 versus the stock’s recent price of $527.67; however, recent insider and institutional selling adds caution.

Hyperion Asset Management Ltd cut its position in Spotify Technology (NYSE:SPOT - Free Report) by 24.0% during the third quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 81,868 shares of the company's stock after selling 25,857 shares during the period. Spotify Technology accounts for about 1.1% of Hyperion Asset Management Ltd's investment portfolio, making the stock its 19th biggest position. Hyperion Asset Management Ltd's holdings in Spotify Technology were worth $39,901,000 at the end of the most recent reporting period.

Several other hedge funds also recently modified their holdings of SPOT. Tsfg LLC grew its position in Spotify Technology by 39.7% during the 2nd quarter. Tsfg LLC now owns 81 shares of the company's stock worth $37,000 after acquiring an additional 23 shares during the last quarter. Carl P. Sherr & Co. LLC raised its position in Spotify Technology by 0.7% in the 1st quarter. Carl P. Sherr & Co. LLC now owns 4,138 shares of the company's stock valued at $2,007,000 after purchasing an additional 27 shares during the last quarter. Frank Rimerman Advisors LLC raised its position in Spotify Technology by 2.8% in the 3rd quarter. Frank Rimerman Advisors LLC now owns 1,066 shares of the company's stock valued at $520,000 after purchasing an additional 29 shares during the last quarter. Simplify Asset Management Inc. boosted its stake in Spotify Technology by 3.1% in the first quarter. Simplify Asset Management Inc. now owns 1,074 shares of the company's stock worth $521,000 after purchasing an additional 32 shares in the last quarter. Finally, Arkadios Wealth Advisors boosted its stake in Spotify Technology by 7.5% in the first quarter. Arkadios Wealth Advisors now owns 474 shares of the company's stock worth $230,000 after purchasing an additional 33 shares in the last quarter. Institutional investors and hedge funds own 84.09% of the company's stock.

More Spotify Technology News

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

• Positive Sentiment: Premium growth is strengthening: Premium revenue increased 15%, supported by subscriber gains and pricing increases. The trend suggests Spotify is improving monetization of its core user base ahead of its third-quarter results. Spotify's Premium Growth Gains Traction: Can SPOT Sustain Momentum?
• Positive Sentiment: Paid podcast memberships launched: Spotify is giving podcasters tools to offer perks such as bonus audio or video, fewer advertisements and early access. The initiative could diversify revenue, improve creator retention and increase listener engagement. Spotify launches paid podcast memberships with perks beyond bonus content
• Positive Sentiment: Buybacks provide shareholder support: Spotify renewed its multiyear Joe Rogan licensing agreement and expanded its share-repurchase authorization by approximately $1.5 billion, to about $2.22 billion. Buybacks may support earnings per share, though the larger content commitment raises spending concerns. Does Rogan Renewal Change The Bull Case For Spotify Stock?
• Neutral Sentiment: Third-quarter expectations are in focus: Investors are watching for roughly 788 million monthly active users, 305 million Premium subscribers and approximately €5.0 billion in revenue. Results that exceed or miss these benchmarks could determine the next major move in SPOT. Spotify Q3 Earnings: Wall Street's Insights on Key Metrics
• Neutral Sentiment: Analyst views are mixed: Rosenblatt reaffirmed a “neutral” rating with a $527 price target, indicating limited near-term upside from recent trading levels. A separate valuation analysis cited a substantially higher potential target, highlighting disagreement over Spotify’s growth outlook. Spotify Renewed Joe Rogan and Added $1.5 Billion to Buybacks
• Negative Sentiment: Advertising remains a pressure point: Despite premium revenue momentum, weaker advertising conditions could limit overall growth and temper the benefit of subscriber and pricing gains. StoneX also downgraded Spotify from “buy” to “hold,” adding to investor caution.

Insider Activity at Spotify Technology

In other news, CEO Gustav Söderström sold 20,910 shares of Spotify Technology stock in a transaction that occurred on Monday, October 12th. The stock was sold at an average price of $530.13, for a total transaction of $11,085,018.30. Following the completion of the transaction, the chief executive officer directly owned 19,908 shares in the company, valued at approximately $10,553,828.04. The trade was a 51.23% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Alex Norström sold 5,436 shares of the company's stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $502.10, for a total transaction of $2,729,415.60. Following the completion of the transaction, the chief executive officer owned 66,773 shares in the company, valued at approximately $33,526,723.30. This represents a 7.53% 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. In the last three months, insiders sold 68,092 shares of company stock valued at $35,762,410. 0.40% of the stock is currently owned by insiders.

Spotify Technology Price Performance

NYSE:SPOT traded up $8.91 on Tuesday, hitting $527.67. 750,683 shares of the company's stock were exchanged, compared to its average volume of 2,186,983. The firm has a 50-day moving average price of $522.30 and a 200-day moving average price of $495.97. Spotify Technology has a 52 week low of $405.00 and a 52 week high of $696.95. The company has a market cap of $108.64 billion, a P/E ratio of 32.86, a price-to-earnings-growth ratio of 1.63 and a beta of 1.61.

Spotify Technology (NYSE:SPOT - Get Free Report) last released its earnings results on Tuesday, August 4th. The company reported $3.03 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $3.16 by ($0.13). Spotify Technology had a net margin of 18.44% and a return on equity of 41.39%. The company had revenue of $5.45 billion during the quarter, compared to analyst estimates of $5.47 billion. During the same period in the prior year, the firm posted ($0.42) EPS. Spotify Technology's revenue was up 13.9% compared to the same quarter last year. On average, research analysts expect that Spotify Technology will post 13.77 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

Several research firms recently weighed in on SPOT. Rosenblatt Securities restated a "neutral" rating and issued a $527.00 price objective on shares of Spotify Technology in a research report on Tuesday. Weiss Ratings upgraded Spotify Technology from a "hold (c)" rating to a "hold (c+)" rating in a research report on Wednesday, August 26th. Phillip Securities upgraded Spotify Technology to a "buy" rating and set a $650.00 target price for the company in a research report on Tuesday, August 11th. Benchmark cut their price target on Spotify Technology from $695.00 to $650.00 and set a "buy" rating on the stock in a research note on Wednesday, July 22nd. Finally, UBS Group decreased their price target on Spotify Technology from $690.00 to $675.00 and set a "buy" rating on the stock in a report on Monday, October 5th. One analyst has rated the stock with a Strong Buy rating, twenty-three have given a Buy rating and eight have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $610.25.

Spotify Technology Company Profile

Spotify Technology SA is an audio streaming company that operates the Spotify platform, offering users access to music, podcasts and audiobooks through internet-connected devices. Its catalog includes licensed recordings from music labels and artists, as well as podcasts and other audio content from creators and publishers.

Spotify provides both an ad-supported service and subscription-based Premium plans. Premium subscribers generally receive ad-free listening and additional features, while the advertising-supported service allows users to access content without a paid subscription.

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