Wellington Management Group LLP Has $1.43 Billion Stake in Spotify Technology $SPOT

Key Points

• Wellington Management reduced its Spotify stake by 6.3%, selling 208,285 shares and retaining 3.11 million shares worth approximately $1.43 billion. Institutional investors collectively own 84.09% of the company.
• Spotify’s latest quarter showed 13.9% year-over-year revenue growth to $5.45 billion, though earnings of $3.03 per share and revenue slightly missed analyst estimates.
• The stock was trading up 4.0% at $548.35, while analysts maintained a “Moderate Buy” consensus with an average price target of $609.05; executives also sold shares to cover tax obligations tied to equity awards.

Wellington Management Group LLP reduced its holdings in Spotify Technology (NYSE:SPOT - Free Report) by 6.3% in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 3,111,553 shares of the company's stock after selling 208,285 shares during the quarter. Wellington Management Group LLP owned 1.51% of Spotify Technology worth $1,428,607,000 at the end of the most recent reporting period.

Other hedge funds also recently modified their holdings of the company. Sivia Capital Partners LLC acquired a new stake in Spotify Technology during the 2nd quarter worth approximately $312,000. Jump Financial LLC boosted its holdings in shares of Spotify Technology by 5.2% in the second quarter. Jump Financial LLC now owns 1,132 shares of the company's stock valued at $869,000 after buying an additional 56 shares during the period. Cary Street Partners Financial LLC bought a new stake in shares of Spotify Technology during the second quarter worth $178,000. NewEdge Advisors LLC increased its position in shares of Spotify Technology by 36.9% during the second quarter. NewEdge Advisors LLC now owns 12,650 shares of the company's stock worth $9,707,000 after acquiring an additional 3,412 shares in the last quarter. Finally, Glenview Trust co acquired a new stake in shares of Spotify Technology during the second quarter worth $298,000. Institutional investors and hedge funds own 84.09% of the company's stock.

Insider Activity

In related news, CEO Gustav Soderstrom sold 20,833 shares of the stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $507.24, for a total transaction of $10,567,330.92. Following the completion of the transaction, the chief executive officer directly owned 20,142 shares of the company's stock, valued at approximately $10,216,828.08. This represents a 50.84% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Alex Norstrom sold 5,436 shares of the firm's stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $502.10, for a total value of $2,729,415.60. Following the completion of the transaction, the chief executive officer owned 66,773 shares of the company's stock, valued at approximately $33,526,723.30. This represents a 7.53% 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. Insiders have sold 73,371 shares of company stock worth $36,222,251 in the last quarter. 0.40% of the stock is currently owned by corporate insiders.

Spotify Technology Trading Up 4.0%

Spotify Technology stock opened at $548.35 on Friday. Spotify Technology has a 1-year low of $405.00 and a 1-year high of $745.00. The company has a fifty day simple moving average of $493.67 and a 200 day simple moving average of $488.71. The company has a market cap of $112.89 billion, a P/E ratio of 34.14, a price-to-earnings-growth ratio of 1.29 and a beta of 1.58.

Spotify Technology (NYSE:SPOT - Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The company reported $3.03 EPS for the quarter, missing the consensus estimate of $3.16 by ($0.13). The business had revenue of $5.45 billion for the quarter, compared to the consensus estimate of $5.47 billion. Spotify Technology had a return on equity of 41.39% and a net margin of 18.44%.The company's quarterly revenue was up 13.9% compared to the same quarter last year. During the same period last year, the firm earned ($0.42) earnings per share. On average, equities research analysts forecast that Spotify Technology will post 14.3 EPS for the current year.

Key Stories Impacting Spotify Technology

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

• Positive Sentiment: A bullish analysis argues that Spotify’s improving fundamentals and stock price well below last year’s peak could create substantial upside through 2030. The thesis highlights a potential disconnect between the company’s operating performance and its valuation, despite Spotify’s latest quarterly revenue rising 13.9% year over year. Prediction: Spotify Stock Could Be a Monster Winner by 2030
• Positive Sentiment: Spotify launched Premium Early Access in India, giving paying subscribers earlier access to releases from prominent artists including Badshah and Harrdy Sandhu. The initiative could improve premium-user engagement, strengthen Spotify’s position in India and support future monetization in a large growth market. Spotify launches Premium Early Access in India
• Neutral Sentiment: A discussion of Sweden’s startup ecosystem provides broader technology-sector context but does not announce a material change to Spotify’s operations, financial outlook or valuation. How Sweden built one of Europe’s hottest startup ecosystems
• Negative Sentiment: Spotify’s ad-skipping feature is raising questions about the company’s podcast strategy. Although it may improve the listener experience, easier avoidance of podcast ads could reduce advertising value or complicate revenue sharing for creators and Spotify. Spotify Ad-Skipping Feature Blurs Company Impact On Podcasting

Wall Street Analyst Weigh In

SPOT has been the topic of several research reports. Morgan Stanley boosted their price objective on shares of Spotify Technology from $590.00 to $610.00 and gave the company an "overweight" rating in a research report on Friday, May 22nd. Citizens Jmp upped their price objective on Spotify Technology from $600.00 to $625.00 and gave the stock a "market outperform" rating in a research report on Friday, May 22nd. Rosenblatt Securities decreased their price objective on Spotify Technology from $531.00 to $527.00 and set a "neutral" rating for the company in a report on Wednesday, August 5th. Barclays increased their price objective on Spotify Technology from $500.00 to $565.00 and gave the stock an "overweight" rating in a report on Friday, May 22nd. Finally, Benchmark cut their target price 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. Two research analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $609.05.

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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