Sirius XM Holdings Inc. (SIRI) Downgraded to “Sell” at Zacks Investment Research
Sirius XM Holdings Inc. (NASDAQ:SIRI) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Friday.
According to Zacks, “Even though shares of Sirius XM have outperformed its industry so far this year, we remain concerned about the company's high operating expenses. Escalated costs are likely to hurt its bottom line in the third quarter. Detailed results should be out on Oct 25. Slowdown in subscription growth is another concern. The company added 1.052 million subscribers in the first half of 2016. The number fell to 0.702 million in the first half of 2017. The company's high debt levels also raise concerns. Excessive competition may also hinder growth. We are, however, impressed by the company's recent decision to hike its quarterly dividend payout.”
Several other research firms also recently commented on SIRI. Piper Jaffray Companies set a $7.00 price target on shares of Sirius XM Holdings and gave the stock a “buy” rating in a report on Thursday, July 27th. Royal Bank Of Canada assumed coverage on shares of Sirius XM Holdings in a report on Friday, September 15th. They set a “sector perform” rating and a $6.00 price target on the stock. Macquarie reissued a “buy” rating and set a $6.00 price target (up from $5.65) on shares of Sirius XM Holdings in a report on Thursday, July 27th. BidaskClub raised shares of Sirius XM Holdings from a “buy” rating to a “strong-buy” rating in a report on Saturday, July 1st. Finally, Vetr downgraded shares of Sirius XM Holdings from a “strong-buy” rating to a “buy” rating and set a $6.06 price target on the stock. in a report on Monday, July 3rd. Two research analysts have rated the stock with a sell rating, six have given a hold rating, seven have issued a buy rating and two have assigned a strong buy rating to the company. The stock currently has an average rating of “Buy” and a consensus price target of $5.96.
Shares of Sirius XM Holdings (NASDAQ:SIRI) traded down 0.263% during midday trading on Friday, reaching $5.695. The company had a trading volume of 600,848 shares. Sirius XM Holdings has a one year low of $4.07 and a one year high of $5.89. The company has a 50 day moving average price of $5.58 and a 200-day moving average price of $5.34. The firm has a market capitalization of $26.27 billion, a P/E ratio of 33.500 and a beta of 1.07.
Sirius XM Holdings (NASDAQ:SIRI) last posted its quarterly earnings data on Thursday, July 27th. The company reported $0.04 EPS for the quarter, hitting the consensus estimate of $0.04. The firm had revenue of $1.35 billion during the quarter, compared to analyst estimates of $1.32 billion. Sirius XM Holdings had a net margin of 15.47% and a negative return on equity of 99.07%. Sirius XM Holdings’s revenue was up 9.1% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.04 EPS. On average, analysts anticipate that Sirius XM Holdings will post $0.18 EPS for the current fiscal year.
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Several hedge funds and other institutional investors have recently bought and sold shares of SIRI. Macquarie Group Ltd. boosted its stake in shares of Sirius XM Holdings by 476.2% in the second quarter. Macquarie Group Ltd. now owns 18,392 shares of the company’s stock valued at $101,000 after purchasing an additional 15,200 shares during the period. Pitcairn Co. lifted its stake in Sirius XM Holdings by 1.3% in the second quarter. Pitcairn Co. now owns 18,708 shares of the company’s stock worth $102,000 after acquiring an additional 237 shares during the last quarter. Colony Group LLC purchased a new position in Sirius XM Holdings in the second quarter worth approximately $102,000. Toronto Dominion Bank lifted its stake in Sirius XM Holdings by 9.7% in the second quarter. Toronto Dominion Bank now owns 20,278 shares of the company’s stock worth $111,000 after acquiring an additional 1,799 shares during the last quarter. Finally, Advisor Partners LLC lifted its stake in Sirius XM Holdings by 103.7% in the second quarter. Advisor Partners LLC now owns 23,449 shares of the company’s stock worth $128,000 after acquiring an additional 11,938 shares during the last quarter. 20.31% of the stock is owned by institutional investors and hedge funds.
About Sirius XM Holdings
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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