Will Ticketfly Buy Spark Pandora Media Inc's (P) Next Move Higher?

Pandora Media Inc (P) reached a $450 million deal to buy Ticketfly

by Alex Eppstein

Published on Oct 7, 2015 at 9:13 AM

Pandora Media Inc (NYSE:P) has agreed to purchase small-venue ticketing agency Ticketfly for $450 million in cash and stock. While shares of the Internet radio firm are failing to benefit from the M&A buzz pre-market, option traders have been banking on upside for some time.

At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), P has racked up a call/put volume ratio of 5.33 over the past 10 weeks -- with more than five calls bought to open for each put. More significantly, this ratio outranks all but 2% of comparable readings from the past year, indicating a much stronger-than-usual appetite for bullish bets over bearish.

Optimism toward P isn't constrained to its options pits, either. Two-thirds of covering analysts have doled out "buy" or better assessments.

There's a reason for that. Pandora Media Inc (NYSE:P) has soared over 23% year-to-date to trade at $21.98 -- a 2015 closing high -- and since early September has been ushered higher by its 10- and 20-day moving averages. On a relative-strength basis, the shares have outperformed the broader S&P 500 Index (SPX) by 50.8 percentage points over the previous 60 sessions.

A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earning announcements before it's too late!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


The Nevada Discovery That Could Jeopardize Chinese Dominance
Click to continue to advertiser's site.
Billion-Dollar AT&T Loan Boosts Stock
T announced at $5.5 billion term-loan agreement today
SHOP Stock Fails to Shake Off Downgrade
Raymond James downgraded Shopify to "market perform" from "outperform"
The Nevada Discovery That Could Jeopardize Chinese Dominance
Click to continue to advertiser's site.