Wellington Management Group LLP Takes $389.11 Million Position in Sirius XM Holdings Inc. $SIRI

Key Points

• Wellington Management purchased 9.85 million Sirius XM shares worth approximately $389.1 million, giving it a 2.92% stake. Several other major institutions also initiated or expanded positions, while institutional investors collectively own 10.69% of the company.
• Sirius XM reported quarterly revenue of $2.16 billion, slightly above estimates, but earnings per share of $0.70 fell short of the $0.78 consensus forecast. The company also paid a quarterly dividend of $0.27 per share, representing a 3.8% annualized yield.
• Analysts maintain a consensus “Hold” rating, with an average price target of $30.92 versus the reported share price of $28.54. Recent programming changes and layoffs, including the reported removal of Howard Stern’s Channel 101, create uncertainty around content strategy and subscriber engagement.

Wellington Management Group LLP purchased a new stake in Sirius XM Holdings Inc. (NASDAQ:SIRI - Free Report) in the 2nd quarter, according to the company in its most recent filing with the SEC. The institutional investor purchased 9,848,227 shares of the company's stock, valued at approximately $389,110,000. Wellington Management Group LLP owned about 2.92% of Sirius XM at the end of the most recent reporting period.

A number of other large investors have also recently bought and sold shares of SIRI. Canada Pension Plan Investment Board purchased a new position in Sirius XM during the 2nd quarter worth $1,527,300,000. The Manufacturers Life Insurance Company purchased a new stake in shares of Sirius XM in the second quarter valued at about $1,048,227,000. BlackRock Inc. boosted its stake in shares of Sirius XM by 82.9% during the second quarter. BlackRock Inc. now owns 17,602,229 shares of the company's stock worth $519,970,000 after buying an additional 7,977,045 shares during the period. Bank of Nova Scotia acquired a new stake in shares of Sirius XM during the second quarter worth about $387,690,000. Finally, OMERS ADMINISTRATION Corp purchased a new position in shares of Sirius XM during the second quarter worth about $279,010,000. Institutional investors and hedge funds own 10.69% of the company's stock.

Insider Buying and Selling at Sirius XM

In other news, Director Jonelle Procope sold 16,672 shares of the company's stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $29.97, for a total transaction of $499,659.84. Following the transaction, the director directly owned 18,354 shares of the company's stock, 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 this hyperlink. 3.27% of the stock is currently owned by company insiders.

Sirius XM Price Performance

Shares of NASDAQ:SIRI opened at $28.54 on Friday. The company has a quick ratio of 0.46, a current ratio of 0.46 and a debt-to-equity ratio of 0.79. The company has a market cap of $9.62 billion, a P/E ratio of 11.42, a PEG ratio of 0.62 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. The company has a 50-day moving average price of $29.65 and a 200 day moving average price of $26.49.

Sirius XM (NASDAQ:SIRI - Get Free Report) last released its earnings results on Thursday, July 30th. The company reported $0.70 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.78 by ($0.08). The business had revenue of $2.16 billion for the quarter, compared to analyst estimates of $2.14 billion. Sirius XM had a return on equity of 9.37% and a net margin of 10.23%.The business's revenue for the quarter was up 1.0% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.57 EPS. Research analysts predict that Sirius XM Holdings Inc. will post 3.01 earnings per share for the current year.

Sirius XM Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, August 26th. Shareholders of record on Monday, August 10th were given a dividend of $0.27 per share. This represents a $1.08 annualized dividend and a dividend yield of 3.8%. The ex-dividend date was Monday, August 10th. Sirius XM's payout ratio is presently 43.20%.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on the company. Weiss Ratings upgraded Sirius XM from a "hold (c)" rating to a "hold (c+)" rating in a research report on Thursday, July 9th. Rosenblatt Securities reaffirmed a "buy" rating and set a $45.00 price objective on shares of Sirius XM in a research report on Tuesday, July 28th. Citigroup reiterated a "sell" rating and issued a $25.00 target price (up from $22.00) on shares of Sirius XM in a research note on Friday, July 31st. UBS Group set a $30.00 target price on Sirius XM in a report on Wednesday, July 29th. Finally, Wells Fargo & Company upped their price target on Sirius XM from $30.00 to $31.00 and gave the stock an "equal weight" rating in a research note on Friday, July 31st. Four research analysts have rated the stock with a Buy rating, five have given a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $30.92.

Sirius XM News Summary

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

• Positive Sentiment: SiriusXM is adding former LSU football coach Brian Kelly to a weekly show with Danny Kanell and Roy Philpott. The move expands the company’s sports programming and could help attract college-football listeners and advertising revenue. Brian Kelly joins SiriusXM for weekly show
• Neutral Sentiment: Director Anjali Sud reportedly acquired 60 Sirius XM shares through a dividend-related restricted stock unit credit. Because the shares were received through an equity compensation process rather than a large open-market purchase, the transaction offers limited insight into management’s valuation view. Anjali Sud share acquisition
• Negative Sentiment: SiriusXM is reportedly dropping Howard Stern’s Channel 101 after layoffs affecting roughly a dozen staffers. The decision may reduce programming costs, but it also highlights disruption around one of the company’s highest-profile personalities and could weigh on subscriber engagement, content visibility and investor confidence. Howard Stern’s SiriusXM 101 channel dropped
• Negative Sentiment: Reports that Stern’s channel was removed following broader layoffs add to concerns about SiriusXM’s content strategy and its relationship with marquee talent. The impact could be partly offset if the replacement programming improves listening, but that benefit remains unproven. Howard Stern channel replacement announced

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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