TD Waterhouse Canada Inc. Reduces Stock Position in Spotify Technology $SPOT

Key Points

• TD Waterhouse Canada cut its stake in Spotify by 81.0% in Q4, selling 8,373 shares and leaving 1,966 shares worth about $1.141 million.
• Spotify beat expectations on Feb. 11 with EPS of $5.16 vs. $3.16 expected and revenue of $5.32 billion (up 6.8% YoY), reporting a 13.16% net margin and 31.35% return on equity.
• Insiders sold material positions on April 1: CEO Gustav Soderstrom sold 20,833 shares (~$9.86M, a 50.27% cut) and Alex Norstrom sold 5,436 shares (~$2.61M), leaving insiders owning about 0.40% of the stock.

TD Waterhouse Canada Inc. lowered its stake in Spotify Technology (NYSE:SPOT - Free Report) by 81.0% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 1,966 shares of the company's stock after selling 8,373 shares during the quarter. TD Waterhouse Canada Inc.'s holdings in Spotify Technology were worth $1,141,000 at the end of the most recent quarter.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Helios Capital Management PTE. Ltd. boosted its holdings in Spotify Technology by 56.3% in the third quarter. Helios Capital Management PTE. Ltd. now owns 7,500 shares of the company's stock worth $5,235,000 after purchasing an additional 2,700 shares during the last quarter. Bessemer Group Inc. boosted its stake in shares of Spotify Technology by 35.1% during the 3rd quarter. Bessemer Group Inc. now owns 682,639 shares of the company's stock worth $476,483,000 after acquiring an additional 177,310 shares during the last quarter. Truxt Investmentos Ltda. purchased a new position in shares of Spotify Technology during the 3rd quarter worth $2,093,000. Ownership Capital B.V. purchased a new position in shares of Spotify Technology during the 3rd quarter worth $2,769,000. Finally, Vanguard Group Inc. boosted its stake in shares of Spotify Technology by 2.5% during the 3rd quarter. Vanguard Group Inc. now owns 1,005,882 shares of the company's stock worth $702,106,000 after acquiring an additional 24,199 shares during the last quarter. Hedge funds and other institutional investors own 84.09% of the company's stock.

Spotify Technology Stock Performance

SPOT opened at $515.80 on Friday. Spotify Technology has a fifty-two week low of $405.00 and a fifty-two week high of $785.00. The firm's fifty day moving average is $499.91 and its 200 day moving average is $554.35. The stock has a market cap of $106.19 billion, a price-to-earnings ratio of 53.51, a price-to-earnings-growth ratio of 1.15 and a beta of 1.70.

Spotify Technology (NYSE:SPOT - Get Free Report) last released its earnings results on Wednesday, February 11th. The company reported $5.16 earnings per share for the quarter, beating analysts' consensus estimates of $3.16 by $2.00. Spotify Technology had a net margin of 13.16% and a return on equity of 31.35%. The company had revenue of $5.32 billion for the quarter, compared to analysts' expectations of $5.14 billion. During the same quarter in the previous year, the company earned $1.88 EPS. Spotify Technology's revenue for the quarter was up 6.8% on a year-over-year basis. On average, equities research analysts predict that Spotify Technology will post 15.54 earnings per share for the current year.

Insiders Place Their Bets

In related news, CEO Gustav Soderstrom sold 20,833 shares of Spotify Technology stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $473.52, for a total transaction of $9,864,842.16. Following the transaction, the chief executive officer owned 20,609 shares in the company, valued at approximately $9,758,773.68. The trade was a 50.27% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Alex Norstrom sold 5,436 shares of Spotify Technology stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $479.51, for a total transaction of $2,606,616.36. Following the transaction, the chief executive officer owned 69,989 shares in the company, valued at approximately $33,560,425.39. This trade represents a 7.21% decrease in their position. The SEC filing for this sale provides additional information. 0.40% of the stock is currently owned by insiders.

Key Spotify Technology News

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

• Positive Sentiment: Analyst momentum and pre‑earnings lift: several outlets report SPOT received a near‑term boost (some platforms noted a ~$5 bump) as analysts and platforms highlight upside potential and lifted price targets, lifting investor interest ahead of Q1. Spotify Technology (SPOT) Boosted by $5 Ahead of Upcoming Q1 Report
• Positive Sentiment: Inclusion on lists and sector momentum: SPOT is being cited among top global stocks to watch and as an undervalued European tech name after recent sector rebounds, which can support medium‑term buyer interest. Spotify Technology (SPOT) Boosted by $5 Ahead of Upcoming Q1 Report (InsiderMonkey)
• Neutral Sentiment: Brand and long‑term narrative: CNN’s 20th‑anniversary piece reviews Spotify’s market leadership and industry impact — positive for brand equity but not an immediate stock catalyst. The highs and lows of Spotify’s first 20 years
• Neutral Sentiment: Analyst metric previews: coverage summarizing analyst projections for Q1 (users, subscribers, ad revenue and ARPU) sets expectations — useful for parsing tomorrow’s release but not definitive. Watch paid subscribers and ad revenue beats/misses. What Analyst Projections for Key Metrics Reveal About Spotify (SPOT) Q1 Earnings
• Negative Sentiment: Regulatory headline risk: Texas announced a probe of music streaming platforms, a development cited as driving intra‑day whipsaws for SPOT and increasing short‑term regulatory uncertainty. Texas announces probe of music streaming platforms. Spotify stock whipsaws
• Negative Sentiment: Pre‑earnings caution: coverage highlights Spotify’s mixed surprise history and a negative ESP (expected surprise) cloud for Q1, which raises the chance of a disappointment even if consensus is positive. Spotify Gears Up to Report Q1 Earnings: What's in the Cards?
• Negative Sentiment: Recent price pressure: SPOT has shown short‑term weakness and recently dipped more than the broader market, suggesting traders are trimming positions into the earnings event. Spotify (SPOT) Dips More Than Broader Market: What You Should Know

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on SPOT shares. The Goldman Sachs Group upgraded shares of Spotify Technology from a "neutral" rating to a "buy" rating and dropped their price target for the stock from $735.00 to $700.00 in a research note on Friday, January 23rd. Moffett Nathanson started coverage on shares of Spotify Technology in a research note on Tuesday, January 27th. They set a "neutral" rating and a $487.00 price target on the stock. Cantor Fitzgerald dropped their price target on shares of Spotify Technology from $615.00 to $525.00 and set a "neutral" rating on the stock in a research note on Wednesday, February 11th. Sanford C. Bernstein dropped their price target on shares of Spotify Technology from $830.00 to $650.00 and set an "outperform" rating on the stock in a research note on Wednesday, January 14th. Finally, Morgan Stanley started coverage on shares of Spotify Technology in a research note on Monday, April 13th. They set an "overweight" rating and a $630.00 price target on the stock. Two research analysts have rated the stock with a Strong Buy rating, twenty-three have given a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $691.21.

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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