Sirius XM (NASDAQ:SIRI) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Wednesday.
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.”
SIRI has been the subject of a number of other research reports. Credit Suisse Group reiterated a “neutral” rating and set a $7.50 target price (down previously from $8.50) on shares of Sirius XM in a report on Tuesday. BidaskClub cut Sirius XM from a “buy” rating to a “hold” rating in a report on Friday, August 10th. Goldman Sachs Group cut Sirius XM from a “neutral” rating to a “sell” rating and set a $6.00 target price for the company. in a report on Thursday, June 21st. Macquarie reiterated a “buy” rating and set a $7.75 target price on shares of Sirius XM in a report on Thursday, June 28th. Finally, ValuEngine cut Sirius XM from a “buy” rating to a “hold” rating in a report on Monday. Five equities research analysts have rated the stock with a sell rating, eight have issued a hold rating and seven have given a buy rating to the stock. Sirius XM has an average rating of “Hold” and a consensus target price of $6.86.
Shares of NASDAQ:SIRI opened at $6.36 on Wednesday. The company has a debt-to-equity ratio of -4.70, a current ratio of 0.16 and a quick ratio of 0.16. Sirius XM has a 1 year low of $5.17 and a 1 year high of $7.70. The stock has a market cap of $28.16 billion, a PE ratio of 31.80, a PEG ratio of 1.71 and a beta of 1.03.
Sirius XM (NASDAQ:SIRI) last issued its earnings results on Wednesday, July 25th. The company reported $0.06 earnings per share (EPS) for the quarter, hitting the Zacks’ consensus estimate of $0.06. Sirius XM had a negative return on equity of 78.24% and a net margin of 14.68%. The business had revenue of $1.43 billion during the quarter, compared to analysts’ expectations of $1.42 billion. During the same quarter in the previous year, the business earned $0.04 EPS. The company’s revenue for the quarter was up 6.3% on a year-over-year basis. sell-side analysts forecast that Sirius XM will post 0.25 EPS for the current year.
In other Sirius XM news, EVP Stephen Cook sold 415,502 shares of the company’s stock in a transaction that occurred on Thursday, July 26th. The stock was sold at an average price of $7.20, for a total value of $2,991,614.40. Following the completion of the transaction, the executive vice president now owns 1,988,300 shares in the company, valued at approximately $14,315,760. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.76% of the stock is owned by corporate insiders.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Cambridge Investment Research Advisors Inc. boosted its stake in shares of Sirius XM by 2.1% during the 2nd quarter. Cambridge Investment Research Advisors Inc. now owns 719,843 shares of the company’s stock valued at $4,873,000 after buying an additional 14,805 shares during the last quarter. OMERS ADMINISTRATION Corp purchased a new position in shares of Sirius XM during the 2nd quarter valued at approximately $7,454,000. NumerixS Investment Technologies Inc boosted its stake in shares of Sirius XM by 246.1% during the 2nd quarter. NumerixS Investment Technologies Inc now owns 249,200 shares of the company’s stock valued at $1,700,000 after buying an additional 177,200 shares during the last quarter. Schwab Charles Investment Management Inc. boosted its stake in shares of Sirius XM by 2.4% during the 2nd quarter. Schwab Charles Investment Management Inc. now owns 4,348,307 shares of the company’s stock valued at $29,439,000 after buying an additional 101,050 shares during the last quarter. Finally, OLD Mutual Customised Solutions Proprietary Ltd. boosted its stake in shares of Sirius XM by 160.6% during the 2nd quarter. OLD Mutual Customised Solutions Proprietary Ltd. now owns 45,600 shares of the company’s stock valued at $309,000 after buying an additional 28,100 shares during the last quarter. Hedge funds and other institutional investors own 18.50% of the company’s stock.
About Sirius XM
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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