Sirius XM Sees Unusually High Options Volume (NASDAQ:SIRI)

Key Points

• Sirius XM options activity surged: Traders purchased 37,175 call options, approximately 84% above the typical daily volume of 20,228 calls.
• Analyst sentiment remained neutral: The stock had an average “Hold” rating and a consensus price target of $32.15, with eight Buy, eight Hold, and three Sell ratings.
• Shares traded at $26.64 and the company recently declared a quarterly dividend of $0.27, equivalent to a 4.1% annualized yield; its latest quarterly earnings missed analysts’ EPS expectations despite slightly exceeding revenue estimates.

Sirius XM Holdings Inc. (NASDAQ:SIRI - Get Free Report) was the recipient of unusually large options trading on Friday. Stock traders purchased 37,175 call options on the company. This is an increase of approximately 84% compared to the typical daily volume of 20,228 call options.

Analyst Ratings Changes

SIRI has been the subject of several recent research reports. Wells Fargo & Company reaffirmed a "hold" rating on shares of Sirius XM in a report on Friday, October 2nd. JPMorgan Chase & Co. upped their price objective on shares of Sirius XM from $26.00 to $34.00 and gave the stock a "neutral" rating in a research report on Friday, July 31st. Morgan Stanley boosted their target price on Sirius XM from $24.00 to $28.00 and gave the stock an "underweight" rating in a research report on Tuesday, July 21st. William Blair raised Sirius XM to a "market perform" rating in a research note on Wednesday, September 2nd. Finally, TD Cowen downgraded Sirius XM to a "hold" rating in a research note on Wednesday, September 2nd. Eight research analysts have rated the stock with a Buy rating, eight have given a Hold rating and three have given a Sell rating to the company's stock. Based on data from MarketBeat.com, Sirius XM currently has an average rating of "Hold" and a consensus price target of $32.15.

Insider Transactions at Sirius XM

In other Sirius XM news, Director Jonelle Procope sold 16,672 shares of the 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 completion of the sale, the director directly owned 18,354 shares of the company's stock, valued at approximately $550,069.38. This trade represents a 47.60% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 3.27% of the stock is owned by company insiders.

Institutional Investors Weigh In On Sirius XM

Several hedge funds have recently made changes to their positions in the business. Global Retirement Partners LLC acquired a new stake in Sirius XM in the 2nd quarter worth about $32,000. Sunbelt Securities Inc. lifted its holdings in shares of Sirius XM by 158.5% during the 1st quarter. Sunbelt Securities Inc. now owns 1,295 shares of the company's stock worth $30,000 after acquiring an additional 794 shares during the period. Root Financial Partners LLC lifted its holdings in shares of Sirius XM by 612.8% during the 1st quarter. Root Financial Partners LLC now owns 1,390 shares of the company's stock worth $32,000 after acquiring an additional 1,195 shares during the period. Western Wealth Management LLC acquired a new stake in shares of Sirius XM in the first quarter worth approximately $33,000. Finally, Altshuler Shaham Ltd boosted its position in shares of Sirius XM by 36.7% in the first quarter. Altshuler Shaham Ltd now owns 1,553 shares of the company's stock worth $36,000 after acquiring an additional 417 shares during the last quarter. Institutional investors and hedge funds own 10.69% of the company's stock.

Sirius XM Price Performance

Shares of SIRI traded up $0.31 during mid-day trading on Friday, reaching $26.64. 3,770,428 shares of the company's stock were exchanged, compared to its average volume of 4,834,940. Sirius XM has a 52-week low of $19.76 and a 52-week high of $32.66. 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 50-day simple moving average of $28.15 and a two-hundred day simple moving average of $27.70. The company has a market cap of $8.98 billion, a price-to-earnings ratio of 10.65, a PEG ratio of 0.47 and a beta of 0.98.

Sirius XM (NASDAQ:SIRI - Get Free Report) last announced its earnings results on Thursday, July 30th. The company reported $0.70 earnings per share for the quarter, missing the consensus estimate of $0.78 by ($0.08). Sirius XM had a net margin of 10.23% and a return on equity of 9.37%. The firm had revenue of $2.16 billion during the quarter, compared to analyst estimates of $2.14 billion. During the same period in the previous year, the firm posted $0.57 EPS. The company's revenue for the quarter was up 1.0% compared to the same quarter last year. On average, sell-side analysts predict that Sirius XM will post 3 EPS for the current fiscal year.

Sirius XM Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, August 26th. Shareholders of record on Monday, August 10th were issued a $0.27 dividend. The ex-dividend date was Monday, August 10th. This represents a $1.08 annualized dividend and a yield of 4.1%. Sirius XM's payout ratio is 43.20%.

About Sirius XM

Sirius XM Holdings Inc NASDAQ: SIRI is an audio entertainment company that provides subscription-based satellite radio and streaming services in the United States and Canada. Its SiriusXM service offers commercial-free music, live sports, news, talk programming, comedy, entertainment, and exclusive original content through connected vehicles, the SiriusXM app, and other connected devices.

The company distributes SiriusXM primarily through automakers and vehicle dealers, as well as directly to consumers.

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