Legato Capital Management LLC Sells 3,000 Shares of Spotify Technology $SPOT

Legato Capital Management LLC lessened its holdings in Spotify Technology (NYSE:SPOT) by 27.3% during the 4th quarter, Holdings Channel.com reports. The firm owned 8,000 shares of the company’s stock after selling 3,000 shares during the period. Legato Capital Management LLC’s holdings in Spotify Technology were worth $4,646,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors have also recently made changes to their positions in the business. State Street Corp lifted its stake in shares of Spotify Technology by 1.1% in the 3rd quarter. State Street Corp now owns 4,622,298 shares of the company’s stock worth $3,226,364,000 after purchasing an additional 48,070 shares during the period. Capital World Investors lifted its stake in shares of Spotify Technology by 40.7% in the 3rd quarter. Capital World Investors now owns 2,730,713 shares of the company’s stock worth $1,906,260,000 after purchasing an additional 789,755 shares during the period. Fisher Asset Management LLC lifted its stake in shares of Spotify Technology by 4.6% in the 3rd quarter. Fisher Asset Management LLC now owns 2,602,625 shares of the company’s stock worth $1,816,632,000 after purchasing an additional 113,612 shares during the period. Coatue Management LLC lifted its stake in shares of Spotify Technology by 13.3% in the 3rd quarter. Coatue Management LLC now owns 1,803,173 shares of the company’s stock worth $1,258,615,000 after purchasing an additional 212,006 shares during the period. Finally, Swedbank AB lifted its stake in shares of Spotify Technology by 37.9% in the 4th quarter. Swedbank AB now owns 1,616,321 shares of the company’s stock worth $938,614,000 after purchasing an additional 444,162 shares during the period. Institutional investors own 84.09% of the company’s stock.

Spotify Technology Trading Up 5.9%

NYSE SPOT opened at $518.92 on Friday. Spotify Technology has a 12 month low of $405.00 and a 12 month high of $785.00. The stock has a market cap of $106.83 billion, a price-to-earnings ratio of 41.35, a PEG ratio of 1.18 and a beta of 1.55. The company’s 50 day moving average is $479.80 and its two-hundred day moving average is $523.86.

Spotify Technology (NYSE:SPOT) last released its earnings results on Tuesday, April 28th. The company reported $4.04 EPS for the quarter, topping analysts’ consensus estimates of $3.41 by $0.63. Spotify Technology had a net margin of 15.56% and a return on equity of 35.73%. The company had revenue of $5.25 billion for the quarter, compared to analysts’ expectations of $5.23 billion. During the same quarter last year, the business earned $1.07 EPS. The firm’s revenue was up 8.2% compared to the same quarter last year. Sell-side analysts forecast that Spotify Technology will post 14.87 EPS for the current year.

Insider Buying and Selling

In other Spotify Technology news, CEO Alex Norstrom sold 5,436 shares of the stock in a transaction that occurred 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 completion of the sale, the chief executive officer directly owned 69,989 shares of the company’s stock, valued at $33,560,425.39. This trade represents a 7.21% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Gustav Soderstrom sold 20,833 shares of the stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $430.72, for a total transaction of $8,973,189.76. Following the sale, the chief executive officer directly owned 20,492 shares of the company’s stock, valued at approximately $8,826,314.24. This trade represents a 50.41% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders have sold 47,102 shares of company stock valued at $21,444,648. Insiders own 0.40% of the company’s stock.

Key Stories Impacting Spotify Technology

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

• Positive Sentiment: Spotify announced a new AI partnership with Universal Music Group that will let Premium users create licensed AI-generated covers and remixes, opening a potential new revenue stream while giving artists a cut of the economics. Spotify strikes deal with Universal Music to let premium users create AI covers, remixes
• Positive Sentiment: Management reinforced a bullish 2030 outlook, calling for mid-teens annual revenue growth and gross margins of 35% to 40%, which supports the argument that profitability can keep improving. Spotify stock pops on guidance at first investor day since 2022
• Positive Sentiment: Several Wall Street firms raised price targets after the event, including JPMorgan, Wells Fargo, Morgan Stanley, Barclays, Citizens JMP, and Jefferies, signaling stronger confidence in Spotify’s growth story. Analyst target hikes
• Positive Sentiment: Spotify also introduced new product features tied to engagement and monetization, including AI-generated podcasts, audiobook tools, and reserved concert tickets for top fans, which could deepen user activity and subscription value. Spotify adds AI-powered Q&A and briefing generation features to podcasts
• Neutral Sentiment: A Seeking Alpha opinion piece argued Spotify’s long-term path deserves a premium valuation, but this is more commentary than a new fundamental catalyst. Spotify’s Path Forward Deserves This Premium
• Negative Sentiment: One Seeking Alpha note warned that weaker advertising trends could be a concern, suggesting ad-market softness may remain a headwind even as Spotify’s premium business improves. Spotify: Weaker Advertising Trends Are Becoming A Concern (Downgrade)

Analyst Ratings Changes

Several equities analysts have recently weighed in on the stock. Wells Fargo & Company increased their price objective on shares of Spotify Technology from $580.00 to $600.00 and gave the stock an “overweight” rating in a research note on Friday. JPMorgan Chase & Co. increased 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. Cantor Fitzgerald lowered their price objective on shares of Spotify Technology from $525.00 to $430.00 and set a “neutral” rating on the stock in a research note on Wednesday, April 29th. KeyCorp lowered their price objective on shares of Spotify Technology from $745.00 to $680.00 and set an “overweight” rating on the stock in a research note on Wednesday, April 29th. Finally, Citigroup upgraded shares of Spotify Technology from a “neutral” rating to a “buy” rating and set a $650.00 price objective on the stock in a research note on Friday, January 30th. Two research analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating and six have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $652.46.

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.