Spotify Technology S.A. (NYSE:SPOT) has a significant institutional ownership of 64%, indicating that the stock price is sensitive to the trading actions of these investors. With 13 investors holding a majority stake in the company, the ownership structure plays a key role in determining the company’s direction. While institutions like Spotify Technology, it is important to note that their decisions can also pose risks, especially in a crowded trade scenario.
Insider ownership in Spotify Technology stands at 18%, with key stakeholders like Sven Lorentzon and CEO Daniel Ek holding significant shares. The top 13 shareholders collectively own 50% of the company, indicating a balanced control over decision-making processes. The general public and public companies also have a stake in Spotify Technology, with 10% and 8.2% ownership respectively.
Analysts suggest that researching institutional ownership is a good way to gauge a stock’s expected performance, along with studying analyst sentiments. While insider ownership is considered a positive sign, it can sometimes make it difficult for other shareholders to hold the board accountable for decisions. With a market cap exceeding US$101 billion, Spotify Technology continues to attract investor interest, with the stock price reflecting the actions of institutional and insider stakeholders.
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