Sirius XM (NASDAQ:SIRI) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Friday. The firm currently has a $7.25 target price on the stock. Zacks Investment Research‘s price objective indicates a potential upside of 11.88% from the company’s current price.
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. The stock has witnessed the Zacks Consensus Estimate for current-year earnings being revised 9.1% upward over the last 60 days. However, high operating expenses and escalated debt levels raise concerns. Moreover, stiff competition may act as a major headwind for the company going forward.”
Other research analysts have also issued reports about the company. Deutsche Bank upgraded Sirius XM from a “hold” rating to a “buy” rating and increased their price objective for the stock from $5.25 to $6.50 in a research note on Friday, January 19th. Barclays increased their price objective on Sirius XM from $4.50 to $5.00 and gave the stock an “equal weight” rating in a research note on Thursday, February 1st. BidaskClub upgraded Sirius XM from a “strong sell” rating to a “sell” rating in a research note on Friday, January 26th. JPMorgan Chase & Co. lowered Sirius XM from a “neutral” rating to an “underweight” rating and dropped their price objective for the stock from $5.36 to $5.00 in a research note on Tuesday, January 2nd. Finally, Buckingham Research increased their price objective on Sirius XM from $6.50 to $7.00 and gave the stock a “buy” rating in a research note on Friday, February 2nd. Two analysts have rated the stock with a sell rating, four have issued a hold rating, thirteen have given a buy rating and one has given a strong buy rating to the company. The stock has a consensus rating of “Buy” and an average target price of $6.23.
Sirius XM (NASDAQ:SIRI) opened at $6.48 on Friday. The company has a market capitalization of $28,747.93, a price-to-earnings ratio of 49.85, a P/E/G ratio of 1.79 and a beta of 1.10. Sirius XM has a 12-month low of $4.73 and a 12-month 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.
Sirius XM (NASDAQ:SIRI) last issued its earnings results on Wednesday, January 31st. The company reported $0.05 EPS for the quarter, hitting the consensus estimate of $0.05. The firm had revenue of $1.40 billion during the quarter, compared to analysts’ expectations of $1.40 billion. Sirius XM had a negative return on equity of 79.79% and a net margin of 11.94%. analysts predict that Sirius XM will post 0.24 EPS for the current year.
Sirius XM announced that its Board of Directors has authorized a share buyback plan on Tuesday, January 23rd that allows the company to repurchase $2.00 billion in shares. This repurchase authorization allows the company to purchase shares of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s board believes its stock is undervalued.
In other news, EVP Joseph A. Verbrugge sold 863,570 shares of the firm’s stock in a transaction on Thursday, February 1st. The stock was sold at an average price of $6.10, for a total value of $5,267,777.00. Following the completion of the sale, the executive vice president now directly owns 2,986,689 shares in the company, valued at $18,218,802.90. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, VP Thomas D. Barry sold 175,777 shares of the firm’s stock in a transaction on Thursday, February 1st. The shares were sold at an average price of $6.11, for a total value of $1,073,997.47. Following the completion of the sale, the vice president now owns 551,815 shares of the company’s stock, valued at $3,371,589.65. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 1,113,308 shares of company stock valued at $6,822,521. 1.06% of the stock is currently owned by corporate insiders.
Several large investors have recently made changes to their positions in SIRI. Valmark Advisers Inc. increased its stake in shares of Sirius XM by 102.3% in the fourth quarter. Valmark Advisers Inc. now owns 20,230 shares of the company’s stock valued at $108,000 after buying an additional 10,230 shares in the last quarter. Cornerstone Financial Partners LLC bought a new position in Sirius XM in the fourth quarter valued at about $113,000. Kalos Management Inc. bought a new position in Sirius XM in the third quarter valued at about $114,000. SeaCrest Wealth Management LLC bought a new position in Sirius XM in the fourth quarter valued at about $115,000. Finally, MANA Advisors LLC bought a new position in Sirius XM in the fourth quarter valued at about $129,000. Institutional investors own 20.04% of the company’s stock.
WARNING: This report was first posted by The Ledger Gazette and is owned by of The Ledger Gazette. If you are reading this report on another website, it was copied illegally and reposted in violation of US & international copyright and trademark law. The original version of this report can be accessed at https://ledgergazette.com/2018/03/18/sirius-xm-siri-rating-increased-to-buy-at-zacks-investment-research.html.
About Sirius XM
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.
Receive News & Ratings for Sirius XM Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Sirius XM and related companies with MarketBeat.com's FREE daily email newsletter.