Investors Buy High Volume of Call Options on Sirius XM (NASDAQ:SIRI)

Key Points

• Investors bought 39,523 Sirius XM call options Wednesday, about 95% above the typical volume of 20,251.
• Goldman Sachs upgraded the stock to Buy and raised its price target to $37, citing spectrum assets and a YouTube advertising deal; JPMorgan, by contrast, cut its target to $32 and kept a Neutral rating.
• Management reported signs of subscription stabilization in Q3, but revenue slipped 0.4% year over year and Pandora users declined, while royalty and revenue-share costs increased to $726 million.

Sirius XM Holdings Inc. (NASDAQ:SIRI - Get Free Report) saw some unusual options trading on Wednesday. Stock traders bought 39,523 call options on the stock. This is an increase of approximately 95% compared to the typical volume of 20,251 call options.

More Sirius XM News

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

• Positive Sentiment: Goldman Sachs upgraded Sirius XM to Buy and raised its price target to $37 from $33. The firm cited the value of Sirius XM’s spectrum holdings and its YouTube advertising deal as potential sources of value. Goldman upgrade article
• Positive Sentiment: Management reported signs of subscription stabilization in Q3, including positive self-pay net additions, improved year-over-year churn and stable average revenue per user. The company also highlighted operational efficiency and a focus on customer lifetime value. Q3 earnings call article
• Neutral Sentiment: Analyst views remain divided. A report says Wall Street brokerages collectively rate SIRI “Hold,” reflecting the contrast between Goldman’s upgrade and more cautious assessments. Brokerage ratings article
• Neutral Sentiment: Sirius XM is adding programming, including a Wu-Tang Clan channel and special coverage of the 2026 midterm elections. These offerings may support engagement, though their financial impact is not yet clear. Wu-Tang Clan channel article
• Negative Sentiment: JPMorgan cut its price target to $32 from $34 and maintained a Neutral rating, signaling limited upside in its view. Separately, Pandora’s monthly user base declined year over year, while SiriusXM’s revenue-share and royalty costs rose to $726 million—potential headwinds to growth and margins. JPMorgan rating information Pandora users and royalty costs article

Sirius XM Stock Performance

Shares of SIRI traded up $2.25 during mid-day trading on Wednesday, reaching $33.05. The company had a trading volume of 2,796,110 shares, compared to its average volume of 4,801,349. The company has a quick ratio of 0.32, a current ratio of 0.32 and a debt-to-equity ratio of 0.66. Sirius XM has a 52-week low of $19.76 and a 52-week high of $33.07. The stock has a 50 day moving average of $27.59 and a two-hundred day moving average of $26.26. The stock has a market capitalization of $11.12 billion, a P/E ratio of 13.51, a PEG ratio of 0.48 and a beta of 0.98.

Sirius XM (NASDAQ:SIRI - Get Free Report) last posted its earnings results on Thursday, October 29th. The company reported $0.78 EPS for the quarter, beating analysts' consensus estimates of $0.77 by $0.01. Sirius XM had a net margin of 10.47% and a return on equity of 9.42%. The company had revenue of $2.15 billion for the quarter, compared to analysts' expectations of $2.16 billion. During the same quarter in the prior year, the company posted $0.84 earnings per share. Sirius XM's revenue for the quarter was down .4% compared to the same quarter last year. On average, analysts expect that Sirius XM will post 3.02 earnings per share for the current year.

Sirius XM Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, November 23rd. Stockholders of record on Friday, November 6th will be issued a dividend of $0.27 per share. This represents a $1.08 annualized dividend and a dividend yield of 3.3%. The ex-dividend date of this dividend is Friday, November 6th. Sirius XM's dividend payout ratio is 44.26%.

Insider Buying and Selling at Sirius XM

In other Sirius XM news, Director Jonelle Procope sold 16,672 shares of the stock in a transaction on 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 sale, the director owned 18,354 shares in the company, valued at $550,069.38. This trade represents a 47.60% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Corporate insiders own 3.27% of the company's stock.

Institutional Investors Weigh In On Sirius XM

Several large investors have recently added to or reduced their stakes in SIRI. BlackRock Inc. raised its stake in Sirius XM by 82.9% during the second quarter. BlackRock Inc. now owns 17,602,229 shares of the company's stock valued at $519,970,000 after buying an additional 7,977,045 shares during the last quarter. Dimensional Fund Advisors LP increased its position in shares of Sirius XM by 262.1% during the first quarter. Dimensional Fund Advisors LP now owns 6,301,181 shares of the company's stock valued at $145,426,000 after acquiring an additional 4,560,821 shares in the last quarter. State Street Corp raised its stake in shares of Sirius XM by 68.9% in the second quarter. State Street Corp now owns 5,992,497 shares of the company's stock worth $177,018,000 after purchasing an additional 2,444,881 shares during the last quarter. Bank of New York Mellon Corp boosted 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 valued at $88,982,000 after buying an additional 834,479 shares during the last quarter. Finally, Check Capital Management Inc. CA lifted its stake in Sirius XM by 2.0% during the 1st quarter. Check Capital Management Inc. CA now owns 2,942,595 shares of the company's stock valued at $67,915,000 after acquiring an additional 59,095 shares during the period. Institutional investors and hedge funds own 10.69% of the company's stock.

Analyst Upgrades and Downgrades

SIRI has been the topic of a number of recent research reports. Wolfe Research assumed coverage on Sirius XM in a report on Wednesday, September 2nd. They issued an "outperform" rating on the stock. The Goldman Sachs Group upgraded Sirius XM from a "neutral" rating to a "buy" rating and raised their target price for the company from $33.00 to $37.00 in a report on Tuesday. Bank of America restated an "underperform" rating on shares of Sirius XM in a report on Friday, July 31st. Benchmark restated a "buy" rating on shares of Sirius XM in a research note on Wednesday, July 29th. Finally, Cantor Fitzgerald initiated coverage on shares of Sirius XM in a report on Wednesday, September 2nd. They issued an "overweight" rating on the stock. Nine investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, Sirius XM presently has a consensus rating of "Hold" and an average price target of $32.92.

About Sirius XM

Sirius XM Holdings Inc is a media and entertainment company that provides subscription-based audio programming through its SiriusXM service. The company delivers a broad range of commercial-free music, live sports, news, talk and entertainment programming, including exclusive channels, original shows and coverage of major events.

SiriusXM content is distributed primarily through satellite radio and internet streaming. Subscribers can access the service in vehicles, through the SiriusXM mobile app and website, and on supported connected devices.

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