Sirius XM Holdings Inc. (SIRI) Stock Rating Reaffirmed by Macquarie
Sirius XM Holdings Inc. (NASDAQ:SIRI)‘s stock had its “buy” rating reaffirmed by equities researchers at Macquarie in a note issued to investors on Thursday. They presently have a $6.00 price target on the stock. Macquarie’s target price indicates a potential upside of 11.32% from the company’s previous close.
The analysts wrote, “We remain firm that Sirius XM can navigate declining auto sales and higher capex/cash taxes in the future. Importantly, it’s embracing the connected car with 360L/Automatic Labs and now with a stake in Pandora has an ‘in’ with digital/mobile platforms. We inch our numbers up including sub metrics and buyback assumptions, which drives our target higher to US$6 from US$5.65 based on 14.5x our ’19E FCF/sh, discounted. Impact Net adds, churn, and ARPU impressed: 1) We raise our already-above-guidance self-pay net adds in ‘17 to ~1.5m from ~1.4m, which reflects an improved outlook for 1.4m from 1.3m. This assumes ’17/’18 SAAR of 17.2m/16.9m per our Auto Analyst T. Katayama relative to management’s view of sales landing in the 16.5m-17m range; 2) 1.7% churn was impressive as customer satisfaction offset vehicle-related churn. We model conservative churn of ~2% for ’17/’18 in line with commentary but expect upside to this metric; and 3) ARPU rose ~3%, beating our expectations; we model 3Q/’17 ARPU of US$13.28/US$13.21, which is up 1.8%/2.3% YoY. 38.7% margin was healthy, in spite of the below investments. We are modeling EBITDA margins of 38.3%/38.7% for ‘17/’18 and EBITDA of US$2.06bn vs guidance of US$2.05bn in ‘17. We model slightly elevated R&D/marketing investments for 360L, but expect this to be offset by the remaining cost buckets and a levelling off of programming. We also remain optimistic on the CRB decision that will come mid- Dec; we model a 100bps bump in the ’18 royalty rate.””
SIRI has been the subject of a number of other reports. Vetr cut shares of Sirius XM Holdings from a “buy” rating to a “hold” rating and set a $5.37 target price for the company. in a report on Tuesday, April 25th. Zacks Investment Research raised shares of Sirius XM Holdings from a “sell” rating to a “hold” rating in a report on Wednesday, July 12th. Morgan Stanley cut shares of Sirius XM Holdings from an “equal weight” rating to an “underweight” rating and set a $4.80 target price for the company. in a report on Wednesday, April 19th. BidaskClub raised shares of Sirius XM Holdings from a “buy” rating to a “strong-buy” rating in a report on Saturday, July 1st. Finally, Bank of America Corporation reaffirmed a “buy” rating and issued a $5.50 target price on shares of Sirius XM Holdings in a report on Friday, June 16th. One analyst has rated the stock with a sell rating, eight have assigned a hold rating, six have issued a buy rating and two have given a strong buy rating to the company. The company presently has a consensus rating of “Buy” and an average target price of $5.26.
Sirius XM Holdings (NASDAQ SIRI) traded up 7.42% during midday trading on Thursday, hitting $5.79. The stock had a trading volume of 50,630,452 shares. The stock has a 50 day moving average of $5.34 and a 200 day moving average of $5.08. The stock has a market cap of $27.01 billion, a price-to-earnings ratio of 36.19 and a beta of 1.11. Sirius XM Holdings has a 12 month low of $4.05 and a 12 month high of $5.89. Sirius XM Holdings also was the recipient of unusually large options trading activity on Monday. Traders purchased 38,151 put options on the stock. This is an increase of 1,646% compared to the typical volume of 2,185 put options.
Sirius XM Holdings (NASDAQ:SIRI) last issued its earnings results on Thursday, July 27th. The company reported $0.04 earnings per share (EPS) for the quarter, meeting the Zacks’ consensus estimate of $0.04. Sirius XM Holdings had a net margin of 15.24% and a negative return on equity of 104.00%. The company had revenue of $1.35 billion during the quarter, compared to analysts’ expectations of $1.32 billion. During the same period last year, the company posted $0.04 earnings per share. The firm’s quarterly revenue was up 9.1% compared to the same quarter last year. Analysts expect that Sirius XM Holdings will post $0.18 EPS for the current fiscal year.
A number of hedge funds have recently made changes to their positions in SIRI. Capstone Asset Management Co. raised its stake in shares of Sirius XM Holdings by 0.3% in the second quarter. Capstone Asset Management Co. now owns 65,346 shares of the company’s stock worth $357,000 after buying an additional 170 shares during the period. Miracle Mile Advisors LLC raised its stake in shares of Sirius XM Holdings by 1.5% in the first quarter. Miracle Mile Advisors LLC now owns 19,880 shares of the company’s stock worth $102,000 after buying an additional 300 shares during the period. Investment Centers of America Inc. raised its stake in shares of Sirius XM Holdings by 0.9% in the first quarter. Investment Centers of America Inc. now owns 49,651 shares of the company’s stock worth $256,000 after buying an additional 423 shares during the period. Dynamic Technology Lab Private Ltd raised its stake in shares of Sirius XM Holdings by 1.7% in the first quarter. Dynamic Technology Lab Private Ltd now owns 28,866 shares of the company’s stock worth $149,000 after buying an additional 493 shares during the period. Finally, Blair William & Co. IL raised its stake in shares of Sirius XM Holdings by 1.5% in the first quarter. Blair William & Co. IL now owns 38,211 shares of the company’s stock worth $195,000 after buying an additional 551 shares during the period. Hedge funds and other institutional investors own 22.15% of the company’s stock.
Sirius XM Holdings 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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