Please ensure Javascript is enabled for purposes of website accessibility

Why Pandora Media Inc. Stock is Jumping Today

By Steve Symington - Nov 14, 2014 at 12:45PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Pandora is up 15% following a significant insider purchase. Here's what investors need to know.

This article originally appeared as part of ongoing coverage in our premium Motley Fool Rule Breakers service ... we hope you enjoy this complimentary peek!

What's happening?
Shares of Pandora Media (P) jumped almost 15% Friday after an SEC filing revealed company CEO Brian McAndrews made a significant stock purchase this week. 

Why it's happening
Specifically, the filing says that McAndrews on Wednesday bought 25,000 shares of Pandora at an average price of just over $18.58 per share, good for a total investment of nearly $465,000. If you're wondering why this is so significant, note it's the first open market purchase by any Pandora insider since shortly after the company's June 2011 IPO.

It also came shortly after Pandora stock hit a fresh 52-week-low on the heels of the company's largely positive third-quarter results, which were overshadowed by worries of decelerating growth in Pandora's monthly active listener base. But McAndrews chimed in during Pandora's subsequent conference call to suggest the market was wrong to focus so much on monthly active user growth, and pointed instead to the steadily increasing loyalty of those listeners as a better metric to gauge Pandora's success. In the end, it speaks volumes that McAndrews is willing to put his money where his mouth is.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Pandora Media, Inc. Stock Quote
Pandora Media, Inc.
P
Apple Inc. Stock Quote
Apple Inc.
AAPL
$137.35 (-2.46%) $-3.47

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
327%
 
S&P 500 Returns
116%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/19/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.