Pandora media (NYSE: P), the largest internet radio service provider touched a new peak in yesterday’s trading session. Pandora stock price saw a daily gain of over 5%, the highest one day gain the stock has seen for a long time now. The stock hit a new 52 week high of $25.28, which is a 4% increase over the previous 52 week high. The stock has been trading at its 52 week high ever since the company announced the appointment of new CEO Brian McAndrews. The new CEO is expected to help the company increase its ad revenues which will offset the huge licensing costs the company currently incurs and will in turn improve the profitability of the business. The expectations from the new CEO are reflected in the faith investors are showing. Pandora stock has moved up close to 20% ever since the new CEO has been appointed, hitting 2 new 52 week highs in just 4 days.
While the stock price has been gaining steadily, the pace of insider’s selling the stock hasn’t slowed down. Three insiders disposed close to 80000 shares between them on September 16th, two days after the stock hit a new 52 week high. The total value of insider selling transactions on Sep 16th was $ 1.9 million taking the total insider selling activity at the company for the last two months close to $13 million. The combination of weak earnings, a high stock price and insider selling is one that investors would do well to avoid. We will certainly keep our hands off the stock until McAndrews proves he has a better idea of how to grow the company’s earnings. The stock gained close to 5% in the last trading session to record its highest ever closing price of $25.19.
To see Pandora’s latest stock price movement, click here (NYSE: P)
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Disclaimer: We do not hold any stake in the aforesaid stocks. For detailed disclaimer, please click here.