Hsbc Holdings PLC Acquires 1,859,872 Shares of Sirius XM Holdings Inc. $SIRI

Key Points

• HSBC Holdings PLC sharply increased its Sirius XM stake by 858.4% in the fourth quarter, buying 1,859,872 additional shares and bringing its total holdings to 2,076,539 shares worth about $41.7 million.
• Sirius XM reported better-than-expected quarterly results, with earnings of $0.72 per share versus $0.70 expected and revenue of $2.09 billion versus $2.07 billion estimated. Revenue rose 1.1% year over year.
• The company also pays a quarterly dividend of $0.27 per share, or $1.08 annually, for a yield of about 3.8%. Analysts currently have a consensus rating of Hold with an average price target of $27.45.

Hsbc Holdings PLC increased its holdings in Sirius XM Holdings Inc. (NASDAQ:SIRI - Free Report) by 858.4% during the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 2,076,539 shares of the company's stock after purchasing an additional 1,859,872 shares during the quarter. Hsbc Holdings PLC owned 0.62% of Sirius XM worth $41,726,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds have also added to or reduced their stakes in the business. Berkshire Hathaway Inc grew its stake in shares of Sirius XM by 4.2% during the third quarter. Berkshire Hathaway Inc now owns 124,807,117 shares of the company's stock valued at $2,904,886,000 after buying an additional 5,030,425 shares during the last quarter. AQR Capital Management LLC lifted its stake in shares of Sirius XM by 165.2% in the 2nd quarter. AQR Capital Management LLC now owns 5,191,440 shares of the company's stock valued at $117,327,000 after acquiring an additional 3,233,922 shares during the last quarter. State Street Corp boosted its holdings in Sirius XM by 0.7% during the 4th quarter. State Street Corp now owns 3,487,415 shares of the company's stock valued at $69,731,000 after acquiring an additional 25,906 shares during the period. Check Capital Management Inc. CA boosted its holdings in Sirius XM by 39.9% during the 4th quarter. Check Capital Management Inc. CA now owns 2,883,500 shares of the company's stock valued at $57,656,000 after acquiring an additional 821,657 shares during the period. Finally, Norges Bank bought a new position in Sirius XM during the 4th quarter worth approximately $57,124,000. 10.69% of the stock is owned by institutional investors.

Sirius XM Price Performance

SIRI opened at $28.08 on Wednesday. The company has a debt-to-equity ratio of 0.83, a quick ratio of 0.44 and a current ratio of 0.44. The stock has a market capitalization of $9.45 billion, a PE ratio of 11.85, a price-to-earnings-growth ratio of 0.60 and a beta of 0.96. The stock's 50 day moving average price is $27.23 and its 200-day moving average price is $23.57. Sirius XM Holdings Inc. has a 52-week low of $19.76 and a 52-week high of $30.11.

Sirius XM (NASDAQ:SIRI - Get Free Report) last announced its quarterly earnings results on Thursday, April 30th. The company reported $0.72 EPS for the quarter, topping analysts' consensus estimates of $0.70 by $0.02. The company had revenue of $2.09 billion during the quarter, compared to analyst estimates of $2.07 billion. Sirius XM had a return on equity of 9.19% and a net margin of 9.86%.The firm's revenue was up 1.1% on a year-over-year basis. During the same quarter last year, the firm posted $0.59 earnings per share. On average, equities research analysts predict that Sirius XM Holdings Inc. will post 3.1 EPS for the current year.

Sirius XM Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, May 27th. Stockholders of record on Monday, May 11th were paid a dividend of $0.27 per share. The ex-dividend date of this dividend was Monday, May 11th. This represents a $1.08 dividend on an annualized basis and a dividend yield of 3.8%. Sirius XM's payout ratio is presently 45.57%.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on SIRI shares. Evercore set a $28.00 price target on Sirius XM in a research note on Friday, May 1st. Guggenheim restated a "buy" rating on shares of Sirius XM in a report on Wednesday, June 17th. Weiss Ratings raised shares of Sirius XM from a "sell (d+)" rating to a "hold (c)" rating in a research note on Friday, May 1st. JPMorgan Chase & Co. upped their price target on shares of Sirius XM from $24.00 to $26.00 and gave the company a "neutral" rating in a report on Friday, May 1st. Finally, Citigroup reissued a "sell" rating and set a $22.00 price target (up from $19.00) on shares of Sirius XM in a research report on Monday, May 4th. Four investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $27.45.

Insider Activity

In related news, insider Scott Andrew Greenstein sold 20,744 shares of the stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $29.83, for a total value of $618,793.52. Following the completion of the transaction, the insider directly owned 20,163 shares of the company's stock, valued at $601,462.29. This represents a 50.71% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 3.27% of the stock is owned by corporate insiders.

Sirius XM Company Profile

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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