Shares of Pandora Media Inc (NYSE:P) are trading down over 7% in afternoon trading, even though the company didn’t release any negative news. So what exactly is moving this stock today?
As many of you know, the overall market is performing pretty poorly today after the Chinese Stock Market was halted due to a huge decline of 7%. This undoubtedly is playing a role in bringing shares of Pandora Media Inc (NYSE:P) down so much. However, there are also a few other analytical aspects to this stocks decline as well.
Barron’s is claming that their article by Alexander Eule on Saturday is playing a role in the decline of Pandora Media Inc (NYSE:P), although that’s a little hard to believe. In the article, Eule argued that Pandora’s format “seems quaint, when there is an unlimited jukebox at your fingertips”. This argument is flawed, in that Pandora seemingly has become the leaders in streaming music. If the format was “quaint”, why would the company be so successful?
More likely the reason for today’s decline is probably the fact that SunTrust’s Robinson Humphrey has dowgraded shares of Pandora Media Inc (NYSE:P) from a Buy rating to a rating of Neutral, while also reducing the price target from $18 per share to just $15.
The stock is down 7.31% or $0.98 following the news, hitting $12.43 per share. About 10.22M shares traded hands or 17.20% up from the average. P has declined 28.17% since May 29, 2015 and is downtrending. It has underperformed the S&P500 by 26.05%.
From a total of 21 analysts covering Pandora Media (NYSE:P) stock, 11 rate it a “Buy”, 0 a “Sell”, and 10 a “Hold”. This means that 52% 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 $20.59 which is 65.65% above today’s ($12.43) stock price. Pandora Media was the topic of 39 analyst reports since July 24, 2015 according to the firm StockzIntelligence Inc. M Partners maintained shares on December 17 with a “Neutral” 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 December 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, BMO Capital Markets initiated the stock with a “Market Perform” rating in a report they issued on a December 3.
The institutional sentiment increased to 1.27 in Q2 2015. It’s up 0.22, from 1.05 in 2015Q2. The ratio improved, as 38 funds sold all their Pandora Media Inc shares they owned while 65 reduced their positions. 47 funds bought stakes while 84 increased their total positions. Institutions now own 184.97 million shares which is 10.76% less than the previous share count of 207.27 million in 2015Q2.
Crosslink Capital Inc holds 18.34% of its total portfolio in Pandora Media Inc, equating to 6.16 million shares. Falcon Edge Capital Lp owns 4.67 million shares representing 6.9% of their total US portfolio. Moreover, Light Street Capital Management Llc has 5.9% of their total portfolio invested in the company, equating to 1.85 million shares. The New York-based Ao Asset Management Llc has a total of 4.89% of their portfolio invested in the stock. Omt Capital Management Llc, a California-based fund reported 173,600 shares owned.
Since February 26, 2015, the stock had 0 insider purchases, 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 $2.99 million.
Pandora Media, Inc. is a United States well-known provider of Internet radio in the United States. The company has a market cap of $2.85 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.