Zacks Investment Research downgraded shares of Sirius XM (NASDAQ:SIRI) from a hold rating to a sell rating in a research report sent to investors on Monday.
According to Zacks, “Sirius XM shares have underperformed the industry over the past year. The company faces intense competition in the streaming space from the likes of Apple and Spotify, which is expected to hurt the top line in the near term. Additionally, increasing royalty related expense is expected to keep margins under pressure. Moreover, slowdown in new car penetration due to reduced penetration in high fleet sales with a few automakers is also a concern. However, growth in subscriber base and higher average revenue per user (ARPU) aided fourth-quarter 2018 top line. The company’s subscriber base is witnessing growth owing to a strong content portfolio. Additionally, after Pandora acquisition, Sirius XM has more than 100 million listeners in North America. The acquisition is also expected to further boost its content slate, which is a positive.”
Other analysts also recently issued research reports about the stock. B. Riley reaffirmed a buy rating on shares of Sirius XM in a report on Tuesday, January 29th. Buckingham Research raised shares of Sirius XM from a neutral rating to a buy rating in a report on Monday, January 28th. Macquarie set a $8.00 target price on shares of Sirius XM and gave the stock a buy rating in a report on Wednesday, January 2nd. BidaskClub upgraded shares of Sirius XM from a hold rating to a buy rating in a research note on Tuesday, December 11th. Finally, Pivotal Research reiterated a hold rating and issued a $7.00 price objective on shares of Sirius XM in a research note on Thursday, January 31st. Four analysts have rated the stock with a sell rating, six have given a hold rating and six have issued a buy rating to the company. Sirius XM currently has a consensus rating of Hold and an average target price of $7.19.
Sirius XM (NASDAQ:SIRI) last announced its earnings results on Wednesday, January 30th. The company reported $0.06 EPS for the quarter, hitting the consensus estimate of $0.06. The business had revenue of $1.50 billion during the quarter, compared to the consensus estimate of $1.48 billion. Sirius XM had a net margin of 20.38% and a negative return on equity of 76.76%. Sirius XM’s revenue was up 6.6% compared to the same quarter last year. During the same quarter in the previous year, the firm posted ($0.01) EPS. On average, analysts forecast that Sirius XM will post 0.22 earnings per share for the current fiscal year.
Sirius XM announced that its Board of Directors has authorized a stock repurchase program on Tuesday, January 29th that allows the company to repurchase $2.00 billion in shares. This repurchase authorization allows the company to buy up to 7.7% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s leadership believes its shares are undervalued.
The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, February 28th. Shareholders of record on Monday, February 11th will be paid a $0.0121 dividend. This represents a $0.05 annualized dividend and a yield of 0.82%. The ex-dividend date is Friday, February 8th. Sirius XM’s dividend payout ratio (DPR) is 19.23%.
In other Sirius XM news, VP Thomas D. Barry sold 48,513 shares of Sirius XM stock in a transaction dated Tuesday, February 5th. The shares were sold at an average price of $6.06, for a total value of $293,988.78. Following the completion of the sale, the vice president now owns 462,465 shares in the company, valued at approximately $2,802,537.90. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Stephen Cook sold 56,118 shares of Sirius XM stock in a transaction dated Tuesday, February 5th. The stock was sold at an average price of $6.13, for a total transaction of $344,003.34. Following the completion of the sale, the executive vice president now owns 1,445,007 shares of the company’s stock, valued at approximately $8,857,892.91. The disclosure for this sale can be found here. 0.76% of the stock is owned by insiders.
Large investors have recently modified their holdings of the company. We Are One Seven LLC acquired a new position in shares of Sirius XM in the 4th quarter valued at approximately $41,000. Bruderman Asset Management LLC raised its position in shares of Sirius XM by 268.3% in the 4th quarter. Bruderman Asset Management LLC now owns 8,567 shares of the company’s stock valued at $49,000 after buying an additional 6,241 shares in the last quarter. CWM LLC raised its position in shares of Sirius XM by 127.2% in the 4th quarter. CWM LLC now owns 8,959 shares of the company’s stock valued at $51,000 after buying an additional 5,015 shares in the last quarter. Sound View Wealth Advisors LLC acquired a new position in shares of Sirius XM in the 4th quarter valued at approximately $57,000. Finally, Hurlow Wealth Management Group Inc. acquired a new position in shares of Sirius XM in the 4th quarter valued at approximately $58,000. Institutional investors own 17.35% 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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