Sirius XM Holdings Inc. (NASDAQ:SIRI)‘s stock had its “buy” rating reissued by equities research analysts at Macquarie in a research report issued on Thursday, July 27th. They presently have a $6.00 price target on the stock, up from their prior price target of $5.65. Macquarie’s price objective would suggest a potential upside of 7.91% from the company’s current price.
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.””
A number of other research analysts have also recently issued reports on the stock. Vetr upgraded shares of Sirius XM Holdings from a “buy” rating to a “strong-buy” rating and set a $6.06 price objective for the company in a report on Monday, July 24th. Zacks Investment Research upgraded shares of Sirius XM Holdings from a “sell” rating to a “hold” rating in a report on Wednesday, July 12th. BidaskClub upgraded 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 restated a “buy” rating and set a $5.50 price objective on shares of Sirius XM Holdings in a report on Friday, June 16th. One research analyst has rated the stock with a sell rating, seven have given a hold rating, seven have issued a buy rating and one has issued a strong buy rating to the company’s stock. The company currently has a consensus rating of “Buy” and an average target price of $5.56.
Sirius XM Holdings (SIRI) traded down 1.42% during trading on Thursday, reaching $5.56. 18,920,206 shares of the company were exchanged. The firm has a market cap of $1.77 billion, a price-to-earnings ratio of 32.71 and a beta of 1.11. The firm has a 50-day moving average of $5.40 and a 200-day moving average of $5.11. Sirius XM Holdings has a 52-week low of $4.05 and a 52-week high of $5.89.
Sirius XM Holdings (NASDAQ:SIRI) last issued its quarterly earnings data on Thursday, July 27th. The company reported $0.04 earnings per share (EPS) for the quarter, meeting the Zacks’ consensus estimate of $0.04. The firm had revenue of $1.35 billion during the quarter, compared to analysts’ expectations of $1.32 billion. Sirius XM Holdings had a net margin of 15.47% and a negative return on equity of 99.07%. The business’s revenue for the quarter was up 9.1% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.04 earnings per share. On average, equities analysts forecast that Sirius XM Holdings will post $0.18 EPS for the current year.
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A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Concorde Asset Management LLC acquired a new position in shares of Sirius XM Holdings during the first quarter valued at approximately $128,000. State of Alaska Department of Revenue acquired a new position in shares of Sirius XM Holdings during the first quarter valued at approximately $544,000. Nisa Investment Advisors LLC boosted its position in shares of Sirius XM Holdings by 18.1% in the first quarter. Nisa Investment Advisors LLC now owns 232,026 shares of the company’s stock valued at $1,195,000 after buying an additional 35,572 shares during the last quarter. DnB Asset Management AS boosted its position in shares of Sirius XM Holdings by 10.1% in the first quarter. DnB Asset Management AS now owns 198,715 shares of the company’s stock valued at $1,023,000 after buying an additional 18,300 shares during the last quarter. Finally, Atria Investments LLC boosted its position in shares of Sirius XM Holdings by 26.0% in the first quarter. Atria Investments LLC now owns 66,208 shares of the company’s stock valued at $341,000 after buying an additional 13,666 shares during the last quarter. Institutional investors and hedge funds own 22.03% 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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