Sirius XM (NASDAQ:SIRI) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Wednesday.
According to Zacks, “Sirius XM continues to incur high operating expense which is an overhang on company’s bottom line. High escalated debt level is also a major concern. Moreover, stiff competition may act as a strong headwind for the company going forward. The company mixed record of earnings surprises in recent quarters. However, growth in net subscriber is a positive. Shares of Sirius have outperformed its industry in the past year.”
Other research analysts have also issued research reports about the company. Buckingham Research raised their price objective on Sirius XM from $6.50 to $7.00 and gave the company a “buy” rating in a report on Friday, February 2nd. Citigroup lowered Sirius XM from a “buy” rating to a “neutral” rating and set a $6.65 price objective on the stock. in a report on Thursday, March 22nd. Barclays raised their price objective on Sirius XM from $4.50 to $5.00 and gave the company an “equal weight” rating in a report on Thursday, February 1st. ValuEngine upgraded Sirius XM from a “hold” rating to a “buy” rating in a report on Wednesday, April 4th. Finally, Morgan Stanley raised their price objective on Sirius XM from $5.35 to $5.50 and gave the company an “underweight” rating in a report on Monday, February 5th. Three analysts have rated the stock with a sell rating, five have issued a hold rating, eleven have assigned a buy rating and two have issued a strong buy rating to the company. Sirius XM has a consensus rating of “Buy” and an average target price of $6.21.
Sirius XM stock opened at $6.23 on Wednesday. Sirius XM has a 1 year low of $4.73 and a 1 year high of $6.62. The firm has a market capitalization of $28,163.99, a P/E ratio of 31.15, a P/E/G ratio of 1.76 and a beta of 1.11. The company has a debt-to-equity ratio of -4.42, a quick ratio of 0.16 and a current ratio of 0.17.
Sirius XM (NASDAQ:SIRI) last released its quarterly earnings results on Wednesday, January 31st. The company reported $0.05 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.05. The firm had revenue of $1.40 billion for 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%. analysts forecast that Sirius XM will post 0.24 EPS for the current year.
Sirius XM declared that its board has approved a stock repurchase program on Tuesday, January 23rd that authorizes the company to buyback $2.00 billion in outstanding shares. This buyback authorization authorizes the company to buy shares of its stock through open market purchases. Stock buyback programs are often an indication that the company’s leadership believes its shares are undervalued.
In other news, Director Joan Lordi Amble sold 73,961 shares of Sirius XM stock in a transaction on Wednesday, March 7th. The stock was sold at an average price of $6.50, for a total transaction of $480,746.50. Following the transaction, the director now owns 101,174 shares in the company, valued at approximately $657,631. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, EVP Joseph A. Verbrugge sold 863,570 shares of Sirius XM 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 transaction, the executive vice president now owns 2,986,689 shares in the company, valued at approximately $18,218,802.90. The disclosure for this sale can be found here. In the last quarter, insiders have sold 1,113,308 shares of company stock worth $6,822,521. Insiders own 1.06% of the company’s stock.
Several hedge funds and other institutional investors have recently bought and sold shares of the company. New York State Common Retirement Fund increased its position in shares of Sirius XM by 1.4% during the 3rd quarter. New York State Common Retirement Fund now owns 3,479,400 shares of the company’s stock worth $19,206,000 after purchasing an additional 49,500 shares during the last quarter. Ameriprise Financial Inc. increased its position in shares of Sirius XM by 10.4% during the 3rd quarter. Ameriprise Financial Inc. now owns 227,119 shares of the company’s stock worth $1,254,000 after purchasing an additional 21,440 shares during the last quarter. Wells Fargo & Company MN increased its position in shares of Sirius XM by 1.7% during the 3rd quarter. Wells Fargo & Company MN now owns 3,232,585 shares of the company’s stock worth $17,844,000 after purchasing an additional 52,900 shares during the last quarter. Commerzbank Aktiengesellschaft FI increased its position in shares of Sirius XM by 54.5% during the 3rd quarter. Commerzbank Aktiengesellschaft FI now owns 33,446 shares of the company’s stock worth $185,000 after purchasing an additional 11,797 shares during the last quarter. Finally, Stifel Financial Corp increased its position in shares of Sirius XM by 10.2% during the 3rd quarter. Stifel Financial Corp now owns 108,206 shares of the company’s stock worth $604,000 after purchasing an additional 9,997 shares during the last quarter. Institutional investors and hedge funds own 20.02% of the company’s stock.
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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