Pandora Media Inc (P) Shares Trade Down After Rdio Staff Firings & First Debt Offering

Share

Pandora Media Inc (NYSE:P) shares are trading down this morning, after the company made a few headlines today. Recent acquisition of competitor Rdio was met by mixed recactions, but now that the company appears to be laying off 123 members of the Rdio’s staff, investors seem to be a bit more pessimistic about the recent deal.

Pandora Media Inc (NYSE:P) also announced today, their first ever debt offering. The company announced that they will be looking to raise an astounding $300 million through its first convertible debt offering. The move should provide them with plenty of capital that will be needed for future endeavors, including the acquisition of licenses for various music. The notes will be due in 2020.

The stock is down 2.61% or $0.33 following the news, hitting $12.3 per share. About 11.32 million shares traded hands or 28.93% up from the average. P has declined 28.08% since May 1, 2015 and is downtrending. It has underperformed the S&P500 by 25.29%.

From a total of 22 analysts covering Pandora Media (NYSE:P) stock, 12 rate it a “Buy”, 2 a “Sell”, and 8 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 68.21% above today’s ($12.3) stock price. Pandora Media was the topic of 33 analyst reports since July 24, 2015 according to the firm StockzIntelligence Inc. BMO Capital Markets initiated shares on December 3 with a “Market Perform” rating. SunTrust maintained shares with a”Buy” rating and a $25 target share price in their report from an August 15. Axiom Capital maintained P stock in a recent report from November 17 with a “Hold” rating. Vetr downgraded the rating on August 5. Vetr has a “Sell” rating and a $15.77 price target on shares. Finally, Northland Capital maintained the stock with a “Outperform” rating in a report they issued on an October 26.

The institutional sentiment decreased to 1.05 in Q2 2015. It’s down 0.15, from 1.2 in 2015Q1. The ratio turned negative, 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 $1.24 million. 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 $2.74 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.

COMMENTS: