Sirius XM Holdings Inc. $SIRI Shares Sold by Readystate Asset Management LP

Key Points

• Readystate Asset Management cut its Sirius XM stake by 54.7% in the second quarter, selling 240,344 shares and retaining 198,950 shares worth approximately $5.9 million. Institutional investors collectively own 10.69% of the company.
• Sirius XM reported quarterly EPS of $0.70, below the $0.78 analyst consensus, while revenue of $2.16 billion slightly exceeded estimates and rose 1% year over year.
• The company maintains a quarterly dividend of $0.27 per share, or $1.08 annually, representing a 3.7% yield. Analysts have a consensus “Hold” rating and an average price target of $32, compared with shares recently trading at $28.99.

Readystate Asset Management LP reduced its position in shares of Sirius XM Holdings Inc. (NASDAQ:SIRI - Free Report) by 54.7% in the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 198,950 shares of the company's stock after selling 240,344 shares during the period. Readystate Asset Management LP owned about 0.06% of Sirius XM worth $5,877,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds have also recently bought and sold shares of the company. Fifth Third Bancorp purchased a new position in Sirius XM in the first quarter valued at approximately $1,243,000. Aspen Grove Capital LLC acquired a new position in shares of Sirius XM in the 1st quarter valued at $2,277,000. Brighton Jones LLC purchased a new position in shares of Sirius XM in the 4th quarter valued at $622,000. Bank of New York Mellon Corp raised its stake in Sirius XM by 7.8% during the 1st quarter. Bank of New York Mellon Corp now owns 2,177,761 shares of the company's stock worth $50,263,000 after acquiring an additional 157,860 shares in the last quarter. Finally, Dimensional Fund Advisors LP raised its stake in Sirius XM by 262.1% during the 1st quarter. Dimensional Fund Advisors LP now owns 6,301,181 shares of the company's stock worth $145,426,000 after acquiring an additional 4,560,821 shares in the last quarter. Institutional investors and hedge funds own 10.69% of the company's stock.

Sirius XM Price Performance

Shares of NASDAQ:SIRI opened at $28.99 on Monday. The company has a quick ratio of 0.46, a current ratio of 0.46 and a debt-to-equity ratio of 0.79. Sirius XM Holdings Inc. has a 52 week low of $19.76 and a 52 week high of $32.66. The business has a fifty day simple moving average of $29.74 and a 200-day simple moving average of $26.79. The company has a market cap of $9.77 billion, a P/E ratio of 11.60, a P/E/G ratio of 0.52 and a beta of 0.95.

Sirius XM (NASDAQ:SIRI - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The company reported $0.70 EPS for the quarter, missing analysts' consensus estimates of $0.78 by ($0.08). Sirius XM had a return on equity of 9.37% and a net margin of 10.23%.The company had revenue of $2.16 billion for the quarter, compared to analyst estimates of $2.14 billion. During the same quarter in the prior year, the firm earned $0.57 EPS. The company's revenue for the quarter was up 1.0% compared to the same quarter last year. Equities research analysts forecast that Sirius XM Holdings Inc. will post 3 EPS for the current year.

Sirius XM Announces Dividend

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

Key Stories Impacting Sirius XM

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

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on SIRI. Wells Fargo & Company raised Sirius XM from an "underweight" rating to an "overweight" rating in a report on Wednesday. TD Cowen cut shares of Sirius XM to a "hold" rating in a report on Wednesday. William Blair upgraded shares of Sirius XM to a "market perform" rating in a research note on Wednesday. The Goldman Sachs Group restated a "neutral" rating and issued a $32.00 price objective on shares of Sirius XM in a research note on Friday, August 7th. Finally, JPMorgan Chase & Co. upped their target price on shares of Sirius XM from $26.00 to $34.00 and gave the company a "neutral" rating in a report 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 given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $32.00.

Insider Activity

In other news, Director Jonelle Procope sold 16,672 shares of Sirius XM stock in a transaction dated Thursday, August 6th. The shares were 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 of the company's stock, valued at approximately $550,069.38. The trade was a 47.60% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Insiders own 3.27% of the company's stock.

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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