Earlier today it was reported that streaming music giant Pandora Media Inc (NYSE:P) may be considering a sale. Sources close to the matter report that the company is working with Morgan Stanley to perhaps pursue a sale of themselves.
With that in mind investors are wondering who a potential suitor may be. While there are more than a dozen possible suitors, three companies come to mind that analysts seem to believe could throw an offer Pandora’s way. From a publicly traded angle, both Yahoo and Amazon seem to have some interest. Amazon seems to be the more likely candidate, especially when one considers the mess that Yahoo is currently facing with activist investors urging they, themselves, to sell off core assets. While another possible buyer could be Apple, this seems fairly unlikely given the fact that they could probably grow their Music product just as fast without the need for Pandora.
Shares of the stock soared in afternoon trading as the rumors spread. It will be interesting to see if an offer is made and just how high that offer may be. The current market capital of Pandora Media Inc (NYSE:P) is around $2 billion, and much of today’s gains have been lost after hours after the company reported some rather disappointing earnings. The stock increased 8.45% or $0.71 during the last trading session, hitting $9.11. About 30.24 million shares traded hands or up 263.46% from the average. P has declined 42.78% since July 8, 2015 and is currently downtrending. It has underperformed the S&P500 by 33.91%.
From a total of 24 analysts covering Pandora Media (NYSE:P) stock, 11 rate it a “Buy”, 0 a “Sell”, and 13 a “Hold”. This means that 46% 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 $20.08 which is 120.42% above today’s ($9.11) stock price. Pandora Media was the topic of 45 analyst reports since July 24, 2015 according to the firm StockzIntelligence Inc. Susquehanna initiated shares on January 15 with a “Neutral” rating. FBR Capital upgraded shares to a”Mkt Perform” rating and a $16 target share price in their report from a December 17. Suntrust Robinson downgraded P stock in a recent report from January 4 to a “Neutral” rating. SunTrust maintained the rating on August 15. SunTrust has a “Buy” rating and a $25 price target on shares. Finally, Albert Fried upgraded the stock to a “Overweight” rating in a report they issued on a December 17.
The institutional sentiment increased to 1.27 in Q2 2015. It’s up 0.22, from 1.05 in 2015Q2. The ratio increased, 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 2 insider sales for a total of $280,250 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 $2.05 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.