Zacks Investment Research lowered shares of Sirius XM Holdings Inc. (NASDAQ:SIRI) from a buy rating to a hold rating in a research note issued to investors on Monday, July 31st.
According to Zacks, “Sirius XM reported better than expected revenues in the second quarter of 2017. Moreover, revenues improved 9.06% year over year. It posted record second-quarter adjusted EBITDA growth of 12% year over year to $522 million. Sirius XM's healthy net subscriber growth is encouraging. In the second quarter, the company added 445,000 net new subscribers. Sirius XM is expected to witness further growth in this respect in 2017. The company's efforts to expand its product portfolio also raise optimism. Warren Buffett's decision to raise his stake in the stock is also encouraging. We are also impressed by the company's efforts to reward shareholders. Shares of Sirius XM have outperformed its industry over the last three months. However, the company's high debt level raises concerns. Increased leverage coupled with stiff competition from rivals will act as headwinds for the company going forward. “
Several other equities analysts have also weighed in on the company. Macquarie reaffirmed an outperform rating and issued a $5.85 price objective on shares of Sirius XM Holdings in a research note on Thursday, April 13th. Vetr raised Sirius XM Holdings from a hold rating to a buy rating and set a $5.79 price objective on the stock in a research note on Monday, June 12th. Morgan Stanley lowered Sirius XM Holdings from an equal weight rating to an underweight rating and set a $4.80 price objective on the stock. in a research note on Wednesday, April 19th. Piper Jaffray Companies set a $7.00 price objective on Sirius XM Holdings and gave the company a buy rating in a research note on Thursday, July 27th. Finally, Barclays PLC reaffirmed an underweight rating and issued a $4.50 price objective (down from $4.90) on shares of Sirius XM Holdings in a research note on Monday, May 1st. One equities research analyst has rated the stock with a sell rating, six have given a hold rating, seven have issued a buy rating and two have given a strong buy rating to the company’s stock. Sirius XM Holdings has an average rating of Buy and a consensus target price of $5.73.
Sirius XM Holdings (SIRI) traded up 1.27% during mid-day trading on Monday, reaching $5.57. 18,492,509 shares of the company were exchanged. Sirius XM Holdings has a 1-year low of $4.05 and a 1-year high of $5.89. The stock has a 50-day moving average of $5.49 and a 200 day moving average of $5.16. The firm has a market capitalization of $25.69 billion, a P/E ratio of 32.76 and a beta of 1.11.
Sirius XM Holdings (NASDAQ:SIRI) last issued its quarterly earnings results on Thursday, July 27th. The company reported $0.04 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.04. Sirius XM Holdings had a negative return on equity of 99.07% and a net margin of 15.47%. The firm had revenue of $1.35 billion for the quarter, compared to analyst estimates of $1.32 billion. During the same period last year, the company earned $0.04 EPS. The firm’s quarterly revenue was up 9.1% on a year-over-year basis. Equities research analysts forecast that Sirius XM Holdings will post $0.18 earnings per share for the current year.
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The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, August 31st. Shareholders of record on Thursday, August 10th will be issued a dividend of $0.01 per share. The ex-dividend date is Tuesday, August 8th. This represents a $0.04 annualized dividend and a yield of 0.72%. Sirius XM Holdings’s dividend payout ratio is presently 25.00%.
Large investors have recently bought and sold shares of the company. BlackRock Inc. increased its stake in Sirius XM Holdings by 3,534.6% in the first quarter. BlackRock Inc. now owns 82,131,614 shares of the company’s stock valued at $422,980,000 after buying an additional 79,871,880 shares in the last quarter. Vanguard Group Inc. increased its stake in Sirius XM Holdings by 1.2% in the second quarter. Vanguard Group Inc. now owns 78,433,991 shares of the company’s stock valued at $429,035,000 after buying an additional 957,278 shares in the last quarter. FMR LLC increased its stake in Sirius XM Holdings by 3.8% in the second quarter. FMR LLC now owns 43,576,316 shares of the company’s stock valued at $238,362,000 after buying an additional 1,614,259 shares in the last quarter. Geode Capital Management LLC increased its stake in Sirius XM Holdings by 8.6% in the first quarter. Geode Capital Management LLC now owns 14,647,919 shares of the company’s stock valued at $75,412,000 after buying an additional 1,159,420 shares in the last quarter. Finally, Eagle Asset Management Inc. increased its stake in Sirius XM Holdings by 22.5% in the second quarter. Eagle Asset Management Inc. now owns 13,258,551 shares of the company’s stock valued at $72,524,000 after buying an additional 2,436,197 shares in the last quarter. Institutional investors own 22.30% of the company’s stock.
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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