Hsbc Holdings PLC Cuts Stake in Sirius XM Holdings Inc. $SIRI

Key Points

• HSBC Holdings cut its Sirius XM stake by 69.9% in the second quarter, selling 1.25 million shares and retaining 541,149 shares valued at about $15.9 million. Meanwhile, several other institutional investors, including BlackRock and Dimensional Fund Advisors, increased their positions.
• Analyst sentiment remains mixed, with nine Buy, seven Hold and three Sell ratings. Sirius XM has a consensus rating of Hold and an average price target of $32.
• Sirius XM missed quarterly earnings expectations, reporting $0.70 per share versus the $0.78 consensus, although revenue of $2.16 billion slightly exceeded estimates. The company maintained a quarterly dividend of $0.27 per share, representing a 3.7% annualized yield.

Hsbc Holdings PLC cut its holdings in shares of Sirius XM Holdings Inc. (NASDAQ:SIRI - Free Report) by 69.9% during the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 541,149 shares of the company's stock after selling 1,254,805 shares during the quarter. Hsbc Holdings PLC owned 0.16% of Sirius XM worth $15,928,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. BlackRock Inc. boosted its holdings in Sirius XM by 82.9% in the second quarter. BlackRock Inc. now owns 17,602,229 shares of the company's stock valued at $519,970,000 after purchasing an additional 7,977,045 shares during the period. Dimensional Fund Advisors LP boosted its stake in shares of Sirius XM by 262.1% in the 1st quarter. Dimensional Fund Advisors LP now owns 6,301,181 shares of the company's stock valued at $145,426,000 after buying an additional 4,560,821 shares during the period. AQR Capital Management LLC boosted 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 buying an additional 3,233,922 shares during the period. State Street Corp grew its position in shares of Sirius XM by 0.7% during the fourth quarter. State Street Corp now owns 3,487,415 shares of the company's stock worth $69,731,000 after buying an additional 25,906 shares in the last quarter. Finally, Bank of New York Mellon Corp grew its position in shares of Sirius XM by 38.3% during the second quarter. Bank of New York Mellon Corp now owns 3,012,240 shares of the company's stock worth $88,982,000 after buying an additional 834,479 shares in the last quarter. Hedge funds and other institutional investors own 10.69% of the company's stock.

Wall Street Analyst Weigh In

Several analysts recently weighed in on the stock. Citigroup reaffirmed a "sell" rating and issued a $25.00 target price (up from $22.00) on shares of Sirius XM in a report on Friday, July 31st. Rosenblatt Securities reiterated a "buy" rating and set a $45.00 price target on shares of Sirius XM in a report on Tuesday, July 28th. Benchmark reissued a "buy" rating on shares of Sirius XM in a research report on Wednesday, July 29th. Guggenheim reaffirmed a "buy" rating and set a $35.00 price objective (up from $34.00) on shares of Sirius XM in a research report on Friday, July 31st. Finally, Weiss Ratings raised shares of Sirius XM from a "hold (c)" rating to a "hold (c+)" rating in a research report on Thursday, July 9th. Nine analysts have rated the stock with a Buy rating, seven have given a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat.com, Sirius XM has a consensus rating of "Hold" and a consensus price target of $32.00.

Insider Activity

In related news, Director Jonelle Procope sold 16,672 shares of the firm'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 transaction of $499,659.84. Following the transaction, the director owned 18,354 shares in the company, valued at $550,069.38. This trade represents a 47.60% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. 3.27% of the stock is currently owned by company insiders.

Sirius XM Trading Down 0.7%

NASDAQ SIRI opened at $28.80 on Wednesday. The company has a debt-to-equity ratio of 0.79, a current ratio of 0.46 and a quick ratio of 0.46. The firm's fifty day moving average price is $29.72 and its 200 day moving average price is $26.90. The company has a market capitalization of $9.71 billion, a price-to-earnings ratio of 11.52, a price-to-earnings-growth ratio of 0.52 and a beta of 0.95. Sirius XM Holdings Inc. has a 12 month low of $19.76 and a 12 month high of $32.66.

Sirius XM (NASDAQ:SIRI - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The company reported $0.70 earnings per share for the quarter, missing analysts' consensus estimates of $0.78 by ($0.08). The company 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 period last year, the firm earned $0.57 earnings per share. On average, sell-side analysts expect that Sirius XM Holdings Inc. will post 3 earnings per share for the current fiscal year.

Sirius XM Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, August 26th. Investors of record on Monday, August 10th were given 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 dividend yield of 3.7%. Sirius XM's dividend payout ratio is 43.20%.

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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