Pandora Media Inc (P)’s Shares Rally After Better-Than-Expected Quarterly Results

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What does the smart money think about Pandora Media Inc (NYSE:P)?

Heading into the second quarter, a total of 37 of the hedge funds tracked by Insider Monkey held long positions in this stock, a drop of six from the previous quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were boosting their stakes meaningfully.

According to hedge fund intelligence website Insider Monkey, Seymour Sy Kaufman and Michael Stark’s Crosslink Capital had the largest position in Pandora Media Inc (NYSE:P) at the end of the first quarter, but its Form 4 filing indicating ownership of 6.88 million shares pushed it to the second slot based on known data. Eminence Capital is hence the largest shareholder, holding a $127.9 million position of 7.89 million shares; 2% of its 13F portfolio is allocated to the stock. Other hedgies that hold long positions encompass Richard Gerson and Navroz D. Udwadia’s Falcon Edge Capital, Ken Griffin‘s Citadel Investment Group, and Gilchrist Berg’s Water Street Capital.

Seeing as Pandora Media Inc (NYSE:P) has experienced declining sentiment from the entirety of the hedge funds we track, it’s safe to say that there exists a select few money managers who were dropping their entire stakes in the first quarter. It’s worth mentioning that David Greenspan’s Slate Path Capital cut the biggest investment of the “upper crust” of funds watched by Insider Monkey, valued at close to $100.8 million in stock. Bain Capital’s fund, Brookside Capital, also sold off its stock, about $51 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest was cut by six funds last quarter.

Despite negative hedge fund sentiment and insider selling, we believe that the company is making a turnaround with the growth in its revenue and planned acquisitions over the next few quarters. Nonetheless, we recommend investors let this rally bypass and wait for a lower point to initiate a position in the company.

Disclosure: None

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