SPX Gestao de Recursos Ltda Makes New Investment in Spotify Technology $SPOT

SPX Gestao de Recursos Ltda bought a new stake in shares of Spotify Technology (NYSE:SPOT) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund bought 8,626 shares of the company’s stock, valued at approximately $3,960,000.

Several other hedge funds have also made changes to their positions in the company. Pin Oak Investment Advisors Inc. bought a new position in shares of Spotify Technology during the 2nd quarter worth $27,000. Public Employees Retirement System of Ohio bought a new stake in shares of Spotify Technology in the second quarter valued at about $34,292,000. Ancora Advisors LLC bought a new stake in shares of Spotify Technology in the second quarter valued at about $3,049,000. Manning & Napier Advisors LLC purchased a new stake in Spotify Technology in the second quarter worth about $100,867,000. Finally, Ally Financial Inc. lifted its stake in Spotify Technology by 100.0% in the second quarter. Ally Financial Inc. now owns 7,000 shares of the company’s stock worth $3,214,000 after acquiring an additional 3,500 shares during the period. 84.09% of the stock is currently owned by hedge funds and other institutional investors.

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 Analysts Forecast Growth

A number of research firms have commented on SPOT. UBS Group cut their target price on shares of Spotify Technology from $735.00 to $690.00 and set a “buy” rating on the stock in a research report on Friday, July 10th. Cantor Fitzgerald upped their price target on shares of Spotify Technology from $510.00 to $530.00 and gave the stock a “neutral” rating in a research report on Wednesday, August 5th. Argus reiterated a “buy” rating and set a $600.00 price objective on shares of Spotify Technology in a research note on Thursday, August 13th. JPMorgan Chase & Co. increased their price objective on shares of Spotify Technology from $600.00 to $650.00 and gave the company an “overweight” rating in a research note on Friday, May 22nd. Finally, Benchmark cut their price objective on shares of Spotify Technology from $695.00 to $650.00 and set a “buy” rating on the stock in a report on Wednesday, July 22nd. Two research analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and six have issued a Hold rating to the company. According to MarketBeat, Spotify Technology currently has a consensus rating of “Moderate Buy” and a consensus price target of $609.05.

Spotify Technology Price Performance

Shares of SPOT 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 stock’s 50-day moving average is $493.67 and its 200 day moving average is $488.71. The company has a market cap of $112.89 billion, a P/E ratio of 34.14, a PEG ratio of 1.29 and a beta of 1.58.

Spotify Technology (NYSE:SPOT) last posted its earnings results on Tuesday, August 4th. The company reported $3.03 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.16 by ($0.13). The company had revenue of $5.45 billion during the quarter, compared to analysts’ expectations of $5.47 billion. Spotify Technology had a net margin of 18.44% and a return on equity of 41.39%. Spotify Technology’s revenue for the quarter was up 13.9% on a year-over-year basis. During the same quarter last year, the firm earned ($0.42) EPS. On average, analysts anticipate that Spotify Technology will post 14.3 EPS for the current year.

Insider Transactions at Spotify Technology

In other news, CEO Gustav Soderstrom sold 20,833 shares of Spotify Technology stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $507.24, for a total value of $10,567,330.92. Following the transaction, the chief executive officer owned 20,142 shares of the company’s stock, valued at $10,216,828.08. The trade was a 50.84% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. 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 business’s stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $502.10, for a total transaction of $2,729,415.60. Following the transaction, the chief executive officer owned 66,773 shares of the company’s stock, valued at approximately $33,526,723.30. This trade represents a 7.53% decrease in their position. 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. Insiders sold a total of 73,371 shares of company stock worth $36,222,251 over the last 90 days. Company insiders own 0.40% of the company’s stock.

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.