Sirius XM (SIRI) Trading Down 7.2% After Earnings Miss

Sirius XM Holdings Inc (NASDAQ:SIRI)’s share price dropped 7.2% during trading on Wednesday following a weaker than expected earnings announcement. The stock traded as low as $5.63 and last traded at $5.71. Approximately 82,811,234 shares were traded during mid-day trading, an increase of 186% from the average daily volume of 28,986,334 shares. The stock had previously closed at $6.15.

The company reported $0.03 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.05 by ($0.02). Sirius XM had a net margin of 20.38% and a negative return on equity of 76.76%. The company had revenue of $1.74 billion during the quarter, compared to analyst estimates of $1.77 billion. During the same quarter last year, the business posted $0.06 EPS. The firm’s revenue for the quarter was up 26.8% on a year-over-year basis.

The business also recently announced a quarterly dividend, which will be paid on Friday, May 31st. Investors of record on Friday, May 10th will be issued a $0.0121 dividend. The ex-dividend date is Thursday, May 9th. This represents a $0.05 annualized dividend and a yield of 0.84%. Sirius XM’s dividend payout ratio (DPR) is presently 19.23%.

Sirius XM announced that its board has authorized a stock buyback plan on Tuesday, January 29th that authorizes the company to repurchase $2.00 billion in shares. This repurchase authorization authorizes the company to buy up to 7.7% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s board believes its shares are undervalued.

SIRI has been the subject of several research reports. Macquarie set a $8.00 target price on shares of Sirius XM and gave the company a “buy” rating in a report on Wednesday, January 2nd. Buckingham Research upgraded shares of Sirius XM from a “neutral” rating to a “buy” rating in a report on Monday, January 28th. Zacks Investment Research downgraded shares of Sirius XM from a “hold” rating to a “sell” rating in a report on Friday, March 22nd. JPMorgan Chase & Co. upgraded shares of Sirius XM from an “underweight” rating to an “overweight” rating and lifted their target price for the company from $6.00 to $7.00 in a report on Wednesday, January 2nd. Finally, Barclays set a $6.00 target price on shares of Sirius XM and gave the company a “sell” rating in a report on Saturday, February 2nd. Three investment analysts have rated the stock with a sell rating, five have given a hold rating and seven have issued a buy rating to the company. The company presently has an average rating of “Hold” and an average price target of $7.26.

In other Sirius XM news, EVP James Arthur Cady sold 588,503 shares of the business’s stock in a transaction on Tuesday, March 12th. The shares were sold at an average price of $6.13, for a total value of $3,607,523.39. Following the completion of the transaction, the executive vice president now owns 1,840,070 shares in the company, valued at $11,279,629.10. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, EVP Stephen Cook sold 56,118 shares of the business’s stock in a transaction on 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 transaction, 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. In the last 90 days, insiders sold 693,134 shares of company stock valued at $4,245,516. Insiders own 0.76% of the company’s stock.

Several large investors have recently bought and sold shares of SIRI. Norges Bank acquired a new position in shares of Sirius XM in the fourth quarter worth $72,261,000. BlackRock Inc. grew its stake in shares of Sirius XM by 6.9% in the fourth quarter. BlackRock Inc. now owns 81,345,924 shares of the company’s stock worth $464,485,000 after acquiring an additional 5,256,918 shares in the last quarter. MERIAN GLOBAL INVESTORS UK Ltd grew its stake in shares of Sirius XM by 240.9% in the fourth quarter. MERIAN GLOBAL INVESTORS UK Ltd now owns 6,101,569 shares of the company’s stock worth $34,839,000 after acquiring an additional 4,311,952 shares in the last quarter. Squarepoint Ops LLC grew its stake in shares of Sirius XM by 613.6% in the fourth quarter. Squarepoint Ops LLC now owns 3,440,241 shares of the company’s stock worth $19,644,000 after acquiring an additional 2,958,141 shares in the last quarter. Finally, Morgan Stanley grew its stake in shares of Sirius XM by 44.1% in the third quarter. Morgan Stanley now owns 7,938,067 shares of the company’s stock worth $50,169,000 after acquiring an additional 2,429,258 shares in the last quarter. Institutional investors and hedge funds own 17.14% of the company’s stock.

The stock has a market capitalization of $25.74 billion, a PE ratio of 22.04, a price-to-earnings-growth ratio of 2.48 and a beta of 1.04.

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About Sirius XM (NASDAQ:SIRI)

Sirius XM Holdings Inc provides satellite radio services in the United States. The company broadcasts music, sports, entertainment, comedy, talk, news, traffic, and weather channels, including various music genres ranging from rock, pop and hip-hop, 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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