Sirius XM (SIRI) – Research Analysts’ Recent Ratings Changes

Several brokerages have updated their recommendations and price targets on shares of Sirius XM (NASDAQ: SIRI) in the last few weeks:

  • 9/27/2018 – Sirius XM had its price target raised by analysts at MKM Partners from $8.00 to $9.15. They now have a “neutral” rating on the stock.
  • 9/26/2018 – Sirius XM was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “Sirius XM's increasing royalty fee is expected to keep margins under pressure. The slowdown in auto sales is also a concern. Moreover increased leverage and stiff competition are headwinds for the company. Sirius XM has underperformed the industry on a year-to-date basis. Nevertheless, the company is benifiting from subscriber growth. Regular addition of self-pay subscribers is proving worthy for the company. Solid new car as well as used car conversion rates significantly contributed to self-pay subscriber growth. Moreover, improving new car as well as used car penetration bodes well for the company. The company’s expanding product portfolio is a key catalyst.”
  • 9/25/2018 – Sirius XM had its “neutral” rating reaffirmed by analysts at Credit Suisse Group AG. They now have a $7.50 price target on the stock, down previously from $8.50.
  • 9/24/2018 – Sirius XM was downgraded by analysts at ValuEngine from a “buy” rating to a “hold” rating.
  • 9/24/2018 – Sirius XM had its “buy” rating reaffirmed by analysts at Barrington Research. They now have a $8.00 price target on the stock. They wrote, “We had moved to OUTPERFORM on 1 due to the significant potential we expected in the blend of subscription products combined with monetization of the ad-based service. The all-stock acquisition price terms initially indicated a $10.14 per share value for P based on the trailing 30-day average for SIRI, close to our price target of $11 and 50% above our upgrade price. However, the announced price was also only 13.8% above the 30-day VWAP, indicating a belief that a significant share of the price arbitrage between the equities had occurred in recent trading. We are maintaining our top investment rating on SIRI, though news of the deal has pressured its shares lower. Since P should trade in relationship with SIRI, we maintain our investment rating on P as well.””
  • 9/20/2018 – Sirius XM was downgraded by analysts at BidaskClub from a “buy” rating to a “hold” rating.
  • 9/20/2018 – Sirius XM had its “buy” rating reaffirmed by analysts at Macquarie. They now have a $7.75 price target on the stock.
  • 9/13/2018 – Sirius XM was upgraded by analysts at BidaskClub from a “hold” rating to a “buy” rating.
  • 8/10/2018 – Sirius XM was downgraded by analysts at BidaskClub from a “buy” rating to a “hold” rating.
  • 8/6/2018 – Sirius XM had its price target raised by analysts at Morgan Stanley from $6.00 to $6.20. They now have an “underweight” rating on the stock.
  • 8/2/2018 – Sirius XM was downgraded by analysts at BidaskClub from a “strong-buy” rating to a “buy” rating.
  • 7/30/2018 – Sirius XM was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. According to Zacks, “Sirius XM largely benifited from subscriber growth in second-quarter 2018. Regular addition of self-pay subscribers is proving worthy for the company. Solid new car as well as used car conversion rates significantly contributed to self-pay subscriber growth. Moreover, improving new car as well as used car penetration bodes well for the company. The company’s expanding product portfolio is a key catalyst. Sirius XM has outperformed the industry on a year-to-date basis. However, increasing royalty fee will keep margins under pressure. Moreover, stiff competition is a headwind.”

Shares of SIRI stock traded down $0.02 during trading hours on Thursday, hitting $6.36. 28,773,654 shares of the company’s stock traded hands, compared to its average volume of 18,322,365. Sirius XM Holdings Inc has a 12-month low of $5.17 and a 12-month high of $7.70. The firm has a market capitalization of $28.16 billion, a price-to-earnings ratio of 31.80, a PEG ratio of 1.71 and a beta of 1.03. The company has a debt-to-equity ratio of -4.70, a quick ratio of 0.16 and a current ratio of 0.16.

Sirius XM (NASDAQ:SIRI) last released its earnings results on Wednesday, July 25th. The company reported $0.06 earnings per share (EPS) for the quarter, meeting the Thomson Reuters’ consensus estimate of $0.06. Sirius XM had a net margin of 14.68% and a negative return on equity of 78.24%. The firm had revenue of $1.43 billion during the quarter, compared to analyst estimates of $1.42 billion. During the same period last year, the business earned $0.04 earnings per share. The business’s revenue was up 6.3% on a year-over-year basis. sell-side analysts forecast that Sirius XM Holdings Inc will post 0.25 earnings per share for the current fiscal year.

The company also recently declared a quarterly dividend, which was paid on Friday, August 31st. Investors of record on Friday, August 10th were given a dividend of $0.011 per share. This represents a $0.04 annualized dividend and a dividend yield of 0.69%. The ex-dividend date of this dividend was Thursday, August 9th. Sirius XM’s dividend payout ratio (DPR) is currently 20.00%.

In related news, EVP Stephen Cook sold 415,502 shares of the firm’s stock in a transaction that occurred on Thursday, July 26th. The shares were sold at an average price of $7.20, for a total transaction of $2,991,614.40. Following the completion of the sale, the executive vice president now owns 1,988,300 shares of the company’s stock, valued at $14,315,760. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.76% of the stock is owned by company insiders.

Several institutional investors and hedge funds have recently made changes to their positions in the stock. BlackRock Inc. increased its position in shares of Sirius XM by 5.7% during the second quarter. BlackRock Inc. now owns 78,163,054 shares of the company’s stock valued at $529,167,000 after acquiring an additional 4,249,152 shares in the last quarter. FMR LLC increased its position in shares of Sirius XM by 8.8% during the second quarter. FMR LLC now owns 52,096,871 shares of the company’s stock valued at $352,695,000 after acquiring an additional 4,200,422 shares in the last quarter. Eagle Asset Management Inc. increased its position in shares of Sirius XM by 2.2% during the second quarter. Eagle Asset Management Inc. now owns 16,900,331 shares of the company’s stock valued at $114,415,000 after acquiring an additional 365,343 shares in the last quarter. Carillon Tower Advisers Inc. grew its position in Sirius XM by 4.5% in the 2nd quarter. Carillon Tower Advisers Inc. now owns 11,697,707 shares of the company’s stock worth $79,193,000 after purchasing an additional 501,219 shares during the period. Finally, Legal & General Group Plc grew its position in Sirius XM by 3.1% in the 1st quarter. Legal & General Group Plc now owns 7,358,258 shares of the company’s stock worth $45,892,000 after purchasing an additional 218,455 shares during the period. 18.50% of the stock is owned by institutional investors.

Sirius XM Holdings Inc provides satellite radio services in the United States. The company broadcasts music plus sports, entertainment, comedy, talk, news, traffic, and weather programs, including various music genres ranging from rock, pop and hip-hop to country, dance, jazz, Latin, and classical; live play-by-play sports from principal leagues and colleges; multitude of talk and entertainment channels for various audiences; national, international, and financial news; and limited run channels.

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