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A recent analysis of Spotify Technology’s ownership structure reveals that institutions hold the largest chunk of the company’s stock, with 64% ownership. This high institutional ownership suggests that the stock price is sensitive to their trading actions. In contrast, insider ownership stands at 18%. The top 13 investors collectively own 50% of the company, indicating that no single shareholder has significant control.
Among the major shareholders are Sven Lorentzon, the largest shareholder with 11% of shares, Tencent Holdings Limited with 8.2%, Baillie Gifford & Co. with 7.7%, and CEO Daniel Ek with 6.6%. The general public holds a 10% ownership stake, while public companies own 8.2% of Spotify’s shares.
Institutional investors look favorably on Spotify, as many of them hold a good portion of the company’s stock. However, the risk of a ‘crowded trade’ exists when multiple institutions hold a stock, potentially impacting share prices. Insider ownership is considered positive, with insiders holding a significant stake in the company.
While ownership structure provides valuable insights, it is important to consider other factors when evaluating a stock. Risks and analyst forecasts should also be taken into account. This analysis can help investors make informed decisions about their stock portfolios.
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