Spotify Technology (NYSE:SPOT) CEO Sells $11,380,645.47 in Stock

Key Points

• Spotify CEO Gustav Söderström sold 20,913 shares at an average price of $544.19, generating $11.38 million. The sale reduced his stake by 51.08% and was made to cover tax withholding tied to vested equity awards.
• Spotify shares fell 2.0% to $546.88, giving the company a market capitalization of approximately $112.6 billion. The stock remains below its one-year high of $745 but above its one-year low of $405.
• Spotify’s latest quarterly results slightly missed analyst expectations, with EPS of $3.03 versus $3.16 expected and revenue of $5.45 billion versus $5.47 billion expected, although revenue grew 13.9% year over year. Analysts maintain a “Moderate Buy” consensus with an average price target of $594.50.

Spotify Technology (NYSE:SPOT - Get Free Report) CEO Gustav Söderström sold 20,913 shares of the stock in a transaction on Monday, September 14th. The stock was sold at an average price of $544.19, for a total value of $11,380,645.47. Following the completion of the sale, the chief executive officer owned 20,025 shares in the company, valued at approximately $10,897,404.75. The trade was a 51.08% decrease in their position. The transaction was disclosed in a document filed 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.

Gustav Soderstrom also recently made the following trade(s):

• On Monday, August 3rd, Gustav Söderström sold 20,833 shares of Spotify Technology stock. The stock was sold at an average price of $507.24, for a total transaction of $10,567,330.92.
• On Monday, July 6th, Gustav Söderström sold 20,833 shares of Spotify Technology stock. The shares were sold at an average price of $478.45, for a total transaction of $9,967,548.85.

Spotify Technology Stock Down 2.0%

SPOT traded down $11.38 on Wednesday, reaching $546.88. 1,546,615 shares of the company traded hands, compared to its average volume of 2,288,695. The company has a market cap of $112.59 billion, a P/E ratio of 34.05, a price-to-earnings-growth ratio of 1.64 and a beta of 1.59. Spotify Technology has a one year low of $405.00 and a one year high of $745.00. The firm has a fifty day simple moving average of $511.61 and a two-hundred day simple moving average of $495.35.

Spotify Technology (NYSE:SPOT - Get Free Report) last issued 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). Spotify Technology had a return on equity of 41.39% and a net margin of 18.44%.The company had revenue of $5.45 billion during the quarter, compared to the consensus estimate of $5.47 billion. During the same quarter in the prior year, the company earned ($0.42) earnings per share. Spotify Technology's revenue was up 13.9% on a year-over-year basis. On average, equities analysts forecast that Spotify Technology will post 14.29 earnings per share for the current year.

Institutional Trading of Spotify Technology

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. National Pension Service boosted its holdings in shares of Spotify Technology by 5.7% in the 2nd quarter. National Pension Service now owns 605,199 shares of the company's stock valued at $277,865,000 after buying an additional 32,696 shares in the last quarter. WINTON GROUP Ltd bought a new position in shares of Spotify Technology during the 2nd quarter worth approximately $14,426,000. Engineers Gate Manager LP lifted its position in Spotify Technology by 507.2% during the second quarter. Engineers Gate Manager LP now owns 69,234 shares of the company's stock valued at $31,787,000 after acquiring an additional 57,831 shares during the last quarter. C WorldWide Group Holding A S boosted its stake in Spotify Technology by 11.1% in the second quarter. C WorldWide Group Holding A S now owns 10,491 shares of the company's stock valued at $4,817,000 after acquiring an additional 1,051 shares in the last quarter. Finally, RFG Advisory LLC boosted its stake in Spotify Technology by 2.9% in the second quarter. RFG Advisory LLC now owns 2,630 shares of the company's stock valued at $1,207,000 after acquiring an additional 73 shares in the last quarter. Institutional investors own 84.09% of the company's stock.

Analyst Ratings Changes

A number of equities research analysts have weighed in on the company. Wells Fargo & Company decreased their target price on Spotify Technology from $600.00 to $570.00 and set an "overweight" rating for the company in a research report on Thursday, July 9th. Benchmark dropped their price target on Spotify Technology from $695.00 to $650.00 and set a "buy" rating on the stock in a research report on Wednesday, July 22nd. Morgan Stanley raised their price target on Spotify Technology from $590.00 to $610.00 and gave the company an "overweight" rating in a research note on Friday, May 22nd. Barclays lifted their price objective on Spotify Technology from $500.00 to $565.00 and gave the company an "overweight" rating in a report on Friday, May 22nd. Finally, JPMorgan Chase & Co. upped their price objective on shares of Spotify Technology from $600.00 to $650.00 and gave the stock an "overweight" rating in a research note on Friday, May 22nd. One investment analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and six have issued a Hold rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $594.50.

Spotify Technology Company 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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