Now is the Perfect Time for Pandora Media Inc (NYSE:P) to be Acquired – Which company would make the most sense?


Rumors are swirling today that Pandora Media Inc (NYSE:P) is looking for a company to acquire them. This comes after the company released their quarterly report, one which has sent shares of the stock tumbling. With the stock price being beaten down, now would be the perfect time for a company like Apple, Google, or someone else to jump and and acquire them at a highly discounted rate.

Considering that the stock is now trading at just 1/3 of its 52-week high, and not far from it’s 52-week low, which was approached early this morning, the marketcap stands at just $1.61 billion, a price that several large companies should be willing to pay a premium over to acquire.

Imagine what a company like Apple could do by integrating Pandora Media Inc (NYSE:P) into their own growing music service. It would give them plenty of ammunition to grow outside of their hardware business, and focus a little more on streaming services. To us, they would be the company that would make the most sense. The rumors still remain unconfirmed but it will be interesting to follow them in the coming days to see if someone makes a move.

The stock is down 15.18% or $1.38 following the news, hitting $7.71 per share. About 10.03 million shares traded hands or 9.38% up from the average. P has declined 39.84% since July 9, 2015 and is downtrending. It has underperformed the S&P500 by 30.37%.

From a total of 25 analysts covering Pandora Media (NYSE:P) stock, 11 rate it a “Buy”, 0 a “Sell”, and 14 a “Hold”. This means that 44% 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 $19.76 which is 156.29% above today’s ($7.71) stock price. Pandora Media was the topic of 48 analyst reports since July 24, 2015 according to the firm StockzIntelligence Inc. Needham maintained shares on January 29 with a “Buy” rating. FBR Capital upgraded shares to a”Mkt Perform” rating and a $16 target share price in their report from a December 17. Susquehanna initiated P stock in a recent report from January 18 with a “Neutral” rating. SunTrust maintained the rating on August 15. SunTrust has a “Buy” rating and a $25 price target on shares. Finally, Suntrust Robinson downgraded the stock to a “Neutral” rating in a report they issued on a January 4.

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 selling transactions 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 $1.24M. 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 $1.78 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.