Pandora Media, Inc. (P) Analysts’ Calls on P Stock Conflict

Analysts at Canaccord Genuity cut their rating on shares of Pandora Media, Inc. (NYSE:P) from Buy to Hold in their opinion released on November 06. Goldman analysts have downgraded their rating of P stock from Buy to Neutral in a separate flash note to investors on October 25. Analysts at Needham downgraded the stock to a Hold call from its previous Buy stance, in a research note that dated back to September 25.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Pandora Media, Inc. (NYSE:P)’s prospects. The earliest insider trade took place on 11/19/2018. Lapic S Aimee parted with a total of 96.81 thousand shares of company at average share price of $8.86. The total for the sales was set at $857.77 thousand. After this transaction, the Chief Marketing Officer account balance stood at 402.19 thousand shares. The stock lost -1.02 percent since that insider sale. On 11/16/2018, Bene Stephen G, General Counsel & Secretary, sold 9.73 thousand shares at a price per share of $8.9. This removed 86.59 thousand shares from the insider’s fortune and the stock saw a -1.46 percent retreat in value since the news became public. This transaction left 567.3 thousand shares in the General Counsel & Secretary account. On 11/16/2018, Chief Revenue Officer Trimble John performed a sale transaction worth $105.92 thousand. This sale at $8.9 each has eliminated 11.9 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -1.46 percent decrease since the transaction was reported. The insider now is left with 609.02 thousand shares remaining in the account. Phillips Christopher W, who performs the Chief Product Officer job, sold 12.12 thousand shares for $107.87 thousand. The disposal occurred on 11/16/2018 was priced at $8.9 per share. The share price plunged -1.46 percent since the reporting date. Phillips Christopher W now left with a stake of 688.89 thousand P stock worth $6.04 million after the insider selling.

Pandora Media, Inc. (P) is expected to jump by 7.3 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $11.5-month high price target. This represents a whopping 31.13 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $9.15, which represents a return potential of 4.33 percent when compared to the closing price of the stock of $8.77 on Thursday, December 06. The lowest price target for the stock is $8.75 — slightly more than -0.23 percent from P’s current share price.

The shares are currently floating around the first support level of $8.54. Below this, the next support is placed in the zone of $8.32. Till the time, the P stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 51.25 on daily chart, which may remain a cause for concern. If the price breaks below $8.32 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $8.88 mark may result into a pull-back move towards $9 level.

P shares accumulated 0.2 points or 2.33 percent on Thursday to $8.77 with a light trade volume of 7.283 million shares. After opening the session at $8.44, the shares went as high as $8.77 and as low as $8.43, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $2.41 billion and now has 275.36 million shares outstanding. Pandora Media, Inc. (P) stock has gained 1.39 percent of market value in 21 trading days.

P stock has a trailing 3-year beta of -0.5, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$1.41 a share in the trailing twelve months. The stock’s value has surged 81.95 percent year to date (YTD) against a rise of 84.63 percent in 12 month’s time. The company’s shares still trade -12.91 percent away from its 1-year high of $10.07 and 114.43 percent up from 52-week low of $4.09. The average consensus rating on the company is 2.8, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of Pandora Media, Inc. (P) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry P operates in has an average P/E of 24.29. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 1.59 on the Price-to-Sales ratio. Compare this with the industry average P/S of 5.36. 33.1 percent is the gross profit margin for Pandora Media, Inc. and operating margin sits at -21.2 percent. Along with this, the net profit margin is -23.9 percent.

P will be showing off its Q4 earnings on February 07. Analysts are forecasting revenue to climb 13 percent to $447M in the next fiscal quarter, while earnings are seen soaring by nearly -95.24 percent to -$0.01 per share. History has shown that shares in Pandora Media, Inc. have gone down on 18 different earnings reaction days and are predicted to add 0.11 percent when the company reports upcoming earnings. In last reported earnings results, it earned -$0.06 per share, better than the -$0.11, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $418M, better than the $402M analysts expected. Earnings are estimated to increase by -54.7 percent this year, 49 percent next year and continue to increase by 10 percent annually for the next 5 years.