Positive second quarter 2015 financial results have helped Pandora Media Inc (NYSE:P)’s shares rally by 15.99% in the current trading session. The online radio company exceeded the markets’ earnings and revenue estimates for the quarter ending on June 30. Pandora Media Inc (NYSE:P) reported revenues of $285.56 million against expectations of $283.13 million, whereas its non-GAAP earnings per share were $0.05 against Wall Streets’ estimate of $0.02. The internet radio company has witnessed heavy trading, with 16.26 million shares traded at the time of reporting compared to average daily trading volume of 4.04 million shares. Some of the plus points from the quarterly results include 30% year-over-year growth in quarterly revenues, 37% growth in mobile revenues, and a year-over-year growth of 30% in the advertising revenues of the firm.
While discussing the quarterly revenues, Brian McAndrews, Chairman and CEO of Pandora, said, “Our advertising investments, particularly in local, are paying off. This quarter, local ad revenue reached an all-time high, driving record RPMs.” After better-than-expected second quarter financial results, Pandora Media Inc (NYSE:P) has announced an improved annual guidance, with expected revenues of $1.175 billion to $1.185 billion against a prior outlook of $1.16 to $1.18 billion.
Smart money held a bearish outlook of the stock during of the first quarter, with only 37 hedge fund managers investing $752.05 million in the company while 43 funds had $909.78 million in shares held at the end of 2014. The shares of Pandora Media declined 8.16% in the first quarter, lowering the aggregate investments by that amount, but there was a decline beyond just the share loss. Among other moves, Seymour Sy Kayfman and Michael Stark‘s Crosslink Capital sold off 250,000 shares of the company in June, according to its form 4 filing with the SEC.
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The insiders shared the sentiment of the hedge fund managers by disposing of shares of the company. The founder of Pandora, Timothy Westergen, sold 350,000 shares of the radio company in 2015 with back-to-back sales of 95,000 shares each on February 25 and 26.
For a better understanding of hedge fund sentiment, let’s take a look at the fresh action surrounding Pandora Media Inc (NYSE:P).