Pandora Media Inc (P) Shares Drop in After Hours Following Announcement of Convertible Notes Offering

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Pandora Media Inc (NYSE:P) Shares are down considerably in after hours trading this evening as the company has announced a $300 Million Convertible Notes Offering. The notes, which will be due in 2020, have been offered to qualified instituional buyers. Pandora Media Inc (NYSE:P) will also be offering Morgan Stanley & Co. LLC a 30-day option to purchase an additional $45 million in notes. The proceeds of these notes will be used for general corporate purposes as well as paying the cost of capped call transactions. The stock is down $0.76 or 5.33% in after hours trades.The stock decreased 0.42% or $0.06 on December 2, hitting $14.26. Approximately 4.63M shares traded hands. P shares have declined 22.89% since April 29, 2015 and are currently downtrending. It has underperformed the S&P500 by 22.69%.

From a total of 20 analysts covering Pandora Media (NYSE:P) stock, 11 rate it a “Buy”, 2 a “Sell”, and 7 a “Hold”. This means that 55% of the ratings are positive. The highest target price is $30 while the lowest target price is $10.0. The mean of all analyst targets is $20.69 which is 45.09% above today’s ($14.26) stock price. Pandora Media was the topic of 31 analyst reports since July 24, 2015 according to the firm StockzIntelligence Inc. Axiom Capital maintained shares on November 17 with a “Hold” rating. SunTrust maintained shares with a”Buy” rating and a $25 target share price in their report from an August 15. Northland Capital maintained P stock in a recent report from October 26 with a “Outperform” rating. Vetr downgraded the rating on August 5. Vetr has a “Sell” rating and a $15.77 price target on shares. Finally, Rosenblatt maintained the stock with a “Buy” rating in a report they issued on an October 23.

The institutional sentiment decreased to 1.05 in Q2 2015. It’s down 0.15, from 1.2 in 2015Q1. The ratio fall, as 42 funds sold all their Pandora Media Inc shares they owned while 69 reduced their positions. 35 funds bought stakes while 82 increased their total positions. Institutions now own 207.27 million shares which is 1.15% less than the previous share count of 209.69 million in 2015Q1.

Crosslink Capital Inc holds 13.93% of its total portfolio in Pandora Media Inc, equating to 6.16 million shares. Sylebra Hk Co Ltd owns 3.58 million shares representing 7.17% of their total US portfolio. Moreover, Falcon Edge Capital Lp has 5.53% of their total portfolio invested in the company, equating to 4.67 million shares. The New York-based Slate Path Capital Lp has a total of 3.05% of their portfolio invested in the stock. Light Street Capital Management Llc, a California-based fund reported 1.40 million shares owned.

Since February 26, 2015, the stock had 0 insider buys, and 3 insider sales for a total of $328,088 in net activity. Fleming-Wood Simon sold 8,871 shares worth $169,873. Sze David L sold 30,000 shares worth $569,796. Feuille James sold 67,841 shares worth $1.24M. Trimble John sold 50,000 shares worth $938,430. The insider Westergren Timothy sold 160,000 shares worth $2.99M.

Pandora Media, Inc. is a United States well-known provider of Internet radio in the United States. The company has a market cap of $3.06 billion. The Firm offers a personalized experience for each of its listeners wherever and whenever they want to listen to radio on a range of smartphones, tablets, computers and car audio systems, as well as a range of other Internet-connected devices. It currently has negative earnings. It allows local and national advertisers to deliver targeted messages to its listeners using a combination of audio, display and video advertisements.

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