Ready to Jump After Recent Trade: Sirius XM Holdings Inc. (SIRI)

Sirius XM Holdings Inc. (NASDAQ: SIRI) stock fell -0.68% on Friday to $5.87 against a previous-day closing price of $5.91. With 11.63 million shares changed hands, the volume of the stock remained lighter than its average volume of 15.17 million shares. During the session, the Broadcasting company that operates in wider Communication Services sector, reached to the highest price of $5.93 whereas the lowest price it dropped to was $5.84. The 52-week range on SIRI shows that it touched its highest point at $6.85 and its lowest point at $5.69 during that stretch. It currently has a 1-year price target of $7.12. With its current market cap of 22.74 billion, SIRI has annualized dividend of $0.09 while the current yield stands at 1.50%. Beta for the stock currently stands at 0.95.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of SIRI was down-trending over the past week, with a drop of -1.18%, but this was down by -6.53% over a month. Three-month performance dropped to -3.77% while six-month performance fell -8.28%. The stock gained 1.53% in the past year, while it has lost -4.06% so far this year. A look at the trailing 12-month EPS for SIRI yields 0.31 with Next year EPS estimates of 0.34. For the next quarter, that number is 0.08. This implies an EPS growth rate of 916.90% for this year and 10.58% for next year. EPS is expected to grow by 6.29% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 16.30%.

Float and Shares Shorts:

At present, 3.93 billion SIRI shares are outstanding with a float of 663.11 million shares on hand for trading. On Jul 14, 2022, short shares totaled 194.23 million, which was 4.93% higher than short shares on Jun 14, 2022. In addition to Ms. Jennifer C. Witz as the firm’s CEO & Director, Mr. Scott A. Greenstein serves as its Pres & Chief Content Officer.

Institutional Ownership:

Through their ownership of 12.07% of SIRI’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 81.64% of SIRI, in contrast to 7.49% held by mutual funds. Shares owned by individuals account for 3.69%. As the largest shareholder in SIRI with 1.77% of the stake, The Vanguard Group, Inc. holds 69,029,816 shares worth 69,029,816. A second-largest stockholder of SIRI, BlackRock Fund Advisors, holds 32,653,958 shares, controlling over 0.84% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in SIRI, holding 25,631,951 shares or 0.66% stake. With a 1.46% stake in SIRI, the Invesco QQQ Trust is the largest stakeholder. A total of 56,683,003 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 0.60% of SIRI stock, is the second-largest Mutual Fund holder. It holds 23,339,921 shares valued at 142.14 million. Vanguard Mid Cap Index Fund holds 0.40% of the stake in SIRI, owning 15,610,810 shares worth 95.07 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SIRI since 18 analysts follow the stock currently. There are 7 analysts who recommend BUY ratings, while 4 suggest SELL ratings. Of the remaining analysts, 6 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With SIRI analysts setting a high price target of $8.20 and a low target of $5.75, the average target price over the next 12 months is $7.05. Based on these targets, SIRI could surge 39.69% to reach the target high and fall by -2.04% to reach the target low. Reaching the average price target will result in a growth of 20.1% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. SIRI will report FY 2022 earnings on 02/01/2023. Analysts have provided yearly estimates in a range of $0.34 being high and $0.30 being low. For SIRI, this leads to a yearly average estimate of $0.31. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Sirius XM Holdings Inc. surprised analysts by -$0.01 when it reported $0.07 EPS against a consensus estimate of $0.08. The surprise factor in the prior quarter was -$0.00. Based on analyst estimates, the high estimate for the next quarter is $0.09 and the low estimate is $0.07. The average estimate for the next quarter is thus $0.08.

Dividends & Yield:

In terms of dividends, SIRI has a current ratio of $0.09, which is $0.09 over the trailing 12-months, while a dividend of $0.05 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and SIRI currently yields $1.5. In the past year, SIRI’s dividend yield has been $1.5, but when looking at the stock over the past five years, its yield has been $0.87. Accordingly, SIRI has a current buyback yield of $4.73. This was $4.73 for the TTM, and it was $6.0 for the past five years.

Summary of Insider Activity:

Insiders traded SIRI stock several times over the past three months with 25 Buys and 8 Sells. In these transactions, 7,728,140 shares were bought while 7,925,115 shares were sold. The number of buy transactions has increased to 103 while that of sell transactions has risen to 31 over the past year. The total number of shares bought during that period was 58,226,127 while 14,790,612 shares were sold.

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