Sirius XM (NASDAQ:SIRI) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Monday, March 19th.
According to Zacks, “We are positive on Sirius XM's net subscriber growth. The company's commentary that the new tax law is likely to boost its cash generation to the tune of approximately $900 million over the next four years is also encouraging. Additionally, the decision of the company's board of directors to clear an additional buyback program worth $2 billion is a positive. The company's decision to hike quarterly dividends, announced last year, also raises optimism in the stock. In fact, shares of the company have outperformed its industry over the past month. However, high operating expenses and escalated debt levels raise concerns. Moreover, stiff competition may act as a major headwind for the company going forward.”
Several other equities research analysts have also commented on the stock. BidaskClub upgraded shares of Sirius XM from a “hold” rating to a “buy” rating in a research note on Wednesday, February 7th. Goldman Sachs lifted their price objective on shares of Sirius XM from $5.00 to $5.50 and gave the company a “buy” rating in a research note on Monday, February 5th. Morgan Stanley boosted their price target on shares of Sirius XM from $5.35 to $5.50 and gave the stock an “underweight” rating in a research note on Monday, February 5th. Buckingham Research boosted their price target on shares of Sirius XM from $6.50 to $7.00 and gave the stock a “buy” rating in a research note on Friday, February 2nd. Finally, Barclays boosted their price objective on shares of Sirius XM from $4.50 to $5.00 and gave the stock an “equal weight” rating in a report on Thursday, February 1st. Two investment analysts have rated the stock with a sell rating, six have given a hold rating, eleven have assigned a buy rating and two have assigned a strong buy rating to the company. Sirius XM currently has an average rating of “Buy” and an average target price of $6.21.
Shares of NASDAQ SIRI opened at $6.27 on Monday. Sirius XM has a 1 year low of $4.73 and a 1 year high of $6.62. The company has a debt-to-equity ratio of -4.42, a current ratio of 0.17 and a quick ratio of 0.16. The company has a market cap of $28,119.07, a PE ratio of 31.35, a PEG ratio of 1.76 and a beta of 1.11.
Sirius XM (NASDAQ:SIRI) last issued its quarterly earnings results on Wednesday, January 31st. The company reported $0.05 EPS for the quarter, meeting the Thomson Reuters’ consensus estimate of $0.05. The company had revenue of $1.40 billion during the quarter, compared to analysts’ expectations of $1.40 billion. Sirius XM had a net margin of 11.94% and a negative return on equity of 79.79%. sell-side analysts expect that Sirius XM will post 0.24 EPS for the current fiscal year.
Sirius XM announced that its board has initiated a stock repurchase program on Tuesday, January 23rd that allows the company to repurchase $2.00 billion in shares. This repurchase authorization allows the company to reacquire shares of its stock through open market purchases. Shares repurchase programs are usually a sign that the company’s leadership believes its shares are undervalued.
In other Sirius XM news, Director Joan Lordi Amble sold 73,961 shares of the stock in a transaction on Wednesday, March 7th. The shares were sold at an average price of $6.50, for a total transaction of $480,746.50. Following the transaction, the director now directly owns 101,174 shares in the company, valued at approximately $657,631. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Joseph A. Verbrugge sold 863,570 shares of the stock in a transaction on Thursday, February 1st. The shares were sold at an average price of $6.10, for a total transaction of $5,267,777.00. Following the transaction, the executive vice president now owns 2,986,689 shares in the company, valued at $18,218,802.90. The disclosure for this sale can be found here. Insiders sold 1,113,308 shares of company stock valued at $6,822,521 over the last 90 days. Insiders own 1.06% of the company’s stock.
A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Valmark Advisers Inc. lifted its position in shares of Sirius XM by 102.3% in the 4th quarter. Valmark Advisers Inc. now owns 20,230 shares of the company’s stock worth $108,000 after buying an additional 10,230 shares during the last quarter. Cornerstone Financial Partners LLC acquired a new position in Sirius XM during the 4th quarter valued at about $113,000. Kalos Management Inc. acquired a new position in Sirius XM during the 3rd quarter valued at about $114,000. SeaCrest Wealth Management LLC acquired a new position in Sirius XM during the 4th quarter valued at about $115,000. Finally, MANA Advisors LLC acquired a new position in Sirius XM during the 4th quarter valued at about $129,000. Hedge funds and other institutional investors own 20.02% of the company’s stock.
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Sirius XM Company Profile
Sirius XM Radio Inc broadcasts its music, sports, entertainment, comedy, talk, news, traffic and weather channels in the United States on a subscription fee basis through its two satellite radio systems. Subscribers can also receive certain of its music and other channels over the Internet, including through applications for mobile devices.
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