Fund 1 Investments LLC Makes New Investment in Sirius XM Holdings Inc. $SIRI

Key Points

• Fund 1 Investments LLC acquired 349,173 Sirius XM shares worth approximately $10.3 million, making the stock a 1.7% portfolio holding and representing about 0.10% of the company.
• Sirius XM reported quarterly revenue of $2.16 billion, slightly above estimates, but earnings per share of $0.70 missed the $0.78 consensus. The company also pays a quarterly dividend of $0.27, equivalent to a 3.7% annual yield.
• Analyst sentiment remains mixed, with an overall “Hold” rating and an average price target of $32; bullish coverage cites digital-audio growth and low valuation, while concerns include Howard Stern’s reduced schedule and potential profit-taking after recent gains.

Fund 1 Investments LLC purchased a new position in shares of Sirius XM Holdings Inc. (NASDAQ:SIRI - Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm purchased 349,173 shares of the company's stock, valued at approximately $10,315,000. Sirius XM comprises approximately 1.7% of Fund 1 Investments LLC's portfolio, making the stock its 20th biggest holding. Fund 1 Investments LLC owned approximately 0.10% of Sirius XM as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds have also recently modified their holdings of the business. Global Retirement Partners LLC bought a new position in Sirius XM in the 2nd quarter worth $32,000. Sunbelt Securities Inc. lifted its position in Sirius XM by 158.5% during the first quarter. Sunbelt Securities Inc. now owns 1,295 shares of the company's stock valued at $30,000 after purchasing an additional 794 shares in the last quarter. Root Financial Partners LLC grew its holdings in Sirius XM by 612.8% during the first quarter. Root Financial Partners LLC now owns 1,390 shares of the company's stock valued at $32,000 after purchasing an additional 1,195 shares during the period. Western Wealth Management LLC bought a new stake in Sirius XM during the first quarter valued at about $33,000. Finally, Altshuler Shaham Ltd increased its position in Sirius XM by 36.7% in the first quarter. Altshuler Shaham Ltd now owns 1,553 shares of the company's stock worth $36,000 after buying an additional 417 shares in the last quarter. Institutional investors own 10.69% of the company's stock.

Sirius XM Trading Down 2.6%

Shares of SIRI stock opened at $28.99 on Friday. The company has a debt-to-equity ratio of 0.79, a quick ratio of 0.46 and a current ratio of 0.46. The stock has a fifty day simple moving average of $29.74 and a two-hundred day simple moving average of $26.75. The firm has a market capitalization of $9.77 billion, a PE ratio of 11.60, a PEG ratio of 0.63 and a beta of 0.95. Sirius XM Holdings Inc. has a 52-week low of $19.76 and a 52-week high of $32.66.

Sirius XM (NASDAQ:SIRI - Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The company reported $0.70 EPS for the quarter, missing the consensus estimate of $0.78 by ($0.08). The business had revenue of $2.16 billion during the quarter, compared to analysts' expectations of $2.14 billion. Sirius XM had a net margin of 10.23% and a return on equity of 9.37%. Sirius XM's revenue was up 1.0% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.57 earnings per share. On average, analysts predict that Sirius XM Holdings Inc. will post 3 EPS for the current fiscal year.

Sirius XM Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, August 26th. Investors of record on Monday, August 10th were issued a $0.27 dividend. The ex-dividend date of this dividend was Monday, August 10th. This represents a $1.08 dividend on an annualized basis and a yield of 3.7%. Sirius XM's payout ratio is currently 43.20%.

More Sirius XM News

Here are the key news stories impacting Sirius XM this week:

• Positive Sentiment: Deutsche Bank upgraded Sirius XM to Buy from Hold and raised its price target to $45 from $31. The firm sees significant upside from SiriusXM’s transition toward digital audio and believes the market is underestimating the company’s growth potential. The upgrade previously drove a strong one-day rally and remains the primary bullish catalyst for SIRI. Deutsche Bank sees significant upside from digital audio
• Positive Sentiment: Valuation-focused coverage continues to argue that Sirius XM remains inexpensive. Discounted cash-flow analysis and earnings-based multiples reportedly indicate that the stock trades below estimated intrinsic value, despite a roughly 45% year-to-date advance. This supports the case for additional upside if operating performance improves. Sirius XM stock still looks cheap on cash flow and earnings
• Neutral Sentiment: SiriusXM is expanding sports programming. New York Giants defensive tackle Shelby Harris will host “The Players’ Point” on SiriusXM NFL Radio, adding talent and content to the company’s sports offering. The announcement is strategically supportive but is unlikely to materially change near-term financial results. Shelby Harris to host The Players’ Point
• Negative Sentiment: Howard Stern’s reduced schedule and reported studio shake-up introduce programming uncertainty. Reports that Stern will host only one show per week, with his New York studios potentially being used by other SiriusXM talent, could raise concerns about retaining a major audience draw and managing content costs. Howard Stern’s reduced SiriusXM role
• Negative Sentiment: Investors may be consolidating gains after the recent upgrade-driven surge. Although Deutsche Bank’s $45 target is highly bullish, the stock’s substantial year-to-date gain makes the shares more vulnerable to profit-taking and concerns that the optimistic outlook is already partly reflected in the price. Sirius XM gets a Deutsche Bank upgrade

Insider Buying and Selling

In other Sirius XM news, Director Jonelle Procope sold 16,672 shares of the company's stock in a transaction that occurred on Thursday, August 6th. The stock was sold at an average price of $29.97, for a total value of $499,659.84. Following the completion of the transaction, the director directly owned 18,354 shares in the company, valued at $550,069.38. This represents a 47.60% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Corporate insiders own 3.27% of the company's stock.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on SIRI shares. The Goldman Sachs Group reaffirmed a "neutral" rating and issued a $32.00 price objective on shares of Sirius XM in a research note on Friday, August 7th. William Blair upgraded Sirius XM to a "market perform" rating in a research note on Wednesday. Wolfe Research initiated coverage on shares of Sirius XM in a report on Wednesday. They issued an "outperform" rating for the company. Citigroup restated a "sell" rating and set a $25.00 target price (up from $22.00) on shares of Sirius XM in a research note on Friday, July 31st. Finally, Guggenheim restated a "buy" rating and set a $35.00 target price (up from $34.00) on shares of Sirius XM in a research note on Friday, July 31st. Nine equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, Sirius XM currently has an average rating of "Hold" and an average target price of $32.00.

About Sirius XM

Sirius XM Holdings Inc is a leading audio entertainment company specializing in subscription-based satellite and streaming radio services. Formed in 2008 through the merger of Sirius Satellite Radio and XM Satellite Radio, the company delivers a broad range of programming across music, sports, news, talk and comedy channels. Sirius XM's offerings include exclusive live sports play-by-play, artist-curated music channels, news coverage from major networks and original talk and entertainment series.

Headquartered in New York City, Sirius XM serves listeners throughout the United States and Canada, reaching tens of millions of subscribers.

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