WINTON GROUP Ltd Makes New Investment in Spotify Technology $SPOT

Key Points

• WINTON GROUP Ltd acquired 31,421 Spotify shares during the second quarter, valued at approximately $14.4 million. Institutional investors and hedge funds collectively own 84.09% of the company.
• Spotify’s latest quarterly results fell slightly short of expectations, with $3.03 in adjusted EPS versus the $3.16 consensus and revenue of $5.45 billion versus $5.47 billion expected. Revenue nevertheless increased 13.9% year over year.
• Analysts maintain a generally positive outlook, with Spotify carrying a “Moderate Buy” consensus rating and an average price target of $609.05 versus an opening price of $523.99. Insiders sold $25.9 million of stock over the past three months, primarily to cover tax obligations on vested equity awards.

WINTON GROUP Ltd acquired a new position in shares of Spotify Technology (NYSE:SPOT - Free Report) in the 2nd quarter, according to its most recent disclosure with the SEC. The institutional investor acquired 31,421 shares of the company's stock, valued at approximately $14,426,000.

Several other institutional investors and hedge funds have also made changes to their positions in the business. Pin Oak Investment Advisors Inc. purchased a new stake in Spotify Technology during the second quarter worth approximately $27,000. Portus Wealth Advisors LLC purchased a new position in Spotify Technology in the first quarter valued at approximately $32,000. Kemnay Advisory Services Inc. purchased a new position in Spotify Technology in the fourth quarter valued at approximately $32,000. Whipplewood Advisors LLC raised its holdings in Spotify Technology by 423.1% during the first quarter. Whipplewood Advisors LLC now owns 68 shares of the company's stock worth $33,000 after purchasing an additional 55 shares in the last quarter. Finally, Palladiem LLC acquired a new stake in Spotify Technology during the first quarter worth approximately $34,000. 84.09% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling at Spotify Technology

In other news, CEO Alex Norström sold 5,436 shares of the company's stock in a transaction dated 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 sale, the chief executive officer directly 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 sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Gustav Söderström sold 20,833 shares of the stock in a transaction dated Monday, July 6th. The stock was sold at an average price of $478.45, for a total transaction of $9,967,548.85. Following the sale, the chief executive officer owned 20,259 shares of the company's stock, valued at $9,692,918.55. This trade represents a 50.70% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 52,538 shares of company stock worth $25,878,250 over the last three months. 0.40% of the stock is currently owned by insiders.

Spotify Technology Trading Down 0.9%

SPOT stock opened at $523.99 on Thursday. The company has a market capitalization of $107.88 billion, a P/E ratio of 32.63, a PEG ratio of 1.56 and a beta of 1.59. Spotify Technology has a twelve month low of $405.00 and a twelve month high of $745.00. The business has a 50 day simple moving average of $507.26 and a 200-day simple moving average of $493.41.

Spotify Technology (NYSE:SPOT - Get Free Report) last announced its earnings results on Tuesday, August 4th. The company reported $3.03 EPS for the quarter, missing analysts' consensus estimates of $3.16 by ($0.13). The business had revenue of $5.45 billion during the quarter, compared to analyst estimates of $5.47 billion. Spotify Technology had a net margin of 18.44% and a return on equity of 41.39%. The business's revenue was up 13.9% compared to the same quarter last year. During the same period in the previous year, the firm earned ($0.42) earnings per share. Research analysts predict that Spotify Technology will post 14.29 EPS for the current fiscal year.

Analyst Ratings Changes

SPOT has been the subject of several research analyst reports. Citizens Jmp upped their target price on shares of Spotify Technology from $600.00 to $625.00 and gave the company a "market outperform" rating in a report on Friday, May 22nd. Cantor Fitzgerald lifted their price target on shares of Spotify Technology from $510.00 to $530.00 and gave the stock a "neutral" rating in a research note on Wednesday, August 5th. UBS Group cut their price target on shares of Spotify Technology from $735.00 to $690.00 and set a "buy" rating on the stock in a research note on Friday, July 10th. Morgan Stanley boosted their price target 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. Finally, Rosenblatt Securities decreased their price objective on shares of Spotify Technology from $531.00 to $527.00 and set a "neutral" rating for the company in a research note on Wednesday, August 5th. Two analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat.com, Spotify Technology has a consensus rating of "Moderate Buy" and a consensus target price of $609.05.

Spotify Technology Profile

Spotify Technology SA is a Luxembourg-based audio streaming company that operates the Spotify platform. The service gives users access to a broad catalog of music, podcasts and audiobooks, with features for searching, discovering, creating and sharing audio content across connected devices.

Spotify offers an ad-supported service at no subscription cost and paid Premium plans that provide additional features, including ad-free listening and offline playback. The company generates revenue primarily through subscriptions and advertising, while working with music labels, publishers, podcast creators and other rights holders to distribute content.

Founded in Stockholm in 2006 by Daniel Ek and Martin Lorentzon, Spotify launched its streaming service in 2008.

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