Sirius XM (NASDAQ:SIRI) Shares Down 8.7% on Disappointing Earnings

Key Points

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Sirius XM Holdings Inc. (NASDAQ:SIRI - Get Free Report) dropped 8.7% during trading on Thursday following a weaker than expected earnings announcement. The stock traded as low as $20.55 and last traded at $20.94. Approximately 3,555,201 shares were traded during mid-day trading, a decline of 18% from the average daily volume of 4,333,391 shares. The stock had previously closed at $22.93.

The company reported $0.57 EPS for the quarter, missing analysts' consensus estimates of $0.76 by ($0.19). Sirius XM had a negative net margin of 25.00% and a positive return on equity of 6.77%. During the same quarter last year, the business posted $0.80 EPS. The firm's revenue for the quarter was down 1.8% compared to the same quarter last year.

Sirius XM Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, August 27th. Investors of record on Friday, August 8th will be paid a dividend of $0.27 per share. This represents a $1.08 annualized dividend and a yield of 5.07%. The ex-dividend date is Friday, August 8th. Sirius XM's dividend payout ratio is presently -16.56%.

Analyst Ratings Changes

SIRI has been the subject of several recent research reports. Morgan Stanley increased their target price on shares of Sirius XM from $21.00 to $22.00 and gave the company an "underweight" rating in a research note on Wednesday, July 16th. Seaport Res Ptn upgraded shares of Sirius XM from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, April 8th. Wells Fargo & Company increased their target price on shares of Sirius XM from $16.00 to $19.00 and gave the stock an "underweight" rating in a research report on Wednesday, July 2nd. Rosenblatt Securities dropped their price target on shares of Sirius XM from $24.00 to $22.00 and set a "neutral" rating on the stock in a research note on Friday, May 2nd. Finally, Barrington Research restated an "outperform" rating and set a $28.00 price target on shares of Sirius XM in a research note on Friday, May 2nd. Six research analysts have rated the stock with a sell rating, three have assigned a hold rating, four have issued a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat, Sirius XM has an average rating of "Hold" and an average target price of $26.50.

Insider Buying and Selling at Sirius XM

In other news, Director Kristina Salen sold 1,651 shares of Sirius XM stock in a transaction dated Tuesday, May 27th. The shares were sold at an average price of $22.27, for a total transaction of $36,767.77. Following the sale, the director directly owned 15,471 shares in the company, valued at approximately $344,539.17. The trade was a 9.64% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 3.32% of the company's stock.

Hedge Funds Weigh In On Sirius XM

Several institutional investors have recently added to or reduced their stakes in SIRI. Brighton Jones LLC acquired a new position in shares of Sirius XM during the fourth quarter worth approximately $622,000. LPL Financial LLC lifted its holdings in Sirius XM by 43.9% in the fourth quarter. LPL Financial LLC now owns 103,960 shares of the company's stock valued at $2,370,000 after buying an additional 31,712 shares during the period. Norges Bank acquired a new position in Sirius XM in the fourth quarter valued at approximately $28,269,000. Pictet Asset Management Holding SA lifted its holdings in Sirius XM by 14.2% in the fourth quarter. Pictet Asset Management Holding SA now owns 34,035 shares of the company's stock valued at $776,000 after buying an additional 4,225 shares during the period. Finally, Geode Capital Management LLC lifted its holdings in Sirius XM by 4.1% in the fourth quarter. Geode Capital Management LLC now owns 3,914,785 shares of the company's stock valued at $89,284,000 after buying an additional 154,765 shares during the period. 10.69% of the stock is owned by institutional investors.

Sirius XM Price Performance

The company's fifty day moving average is $22.82 and its two-hundred day moving average is $22.71. The firm has a market capitalization of $7.20 billion, a price-to-earnings ratio of -3.26, a price-to-earnings-growth ratio of 0.34 and a beta of 0.92. The company has a quick ratio of 0.42, a current ratio of 0.42 and a debt-to-equity ratio of 0.93.

About Sirius XM

Sirius XM Holdings Inc operates as an audio entertainment company in North America. It operates in two segments, Sirius XM, and Pandora and Off-platform. The company's Sirius XM segment provides music, sports, entertainment, comedy, talk, news, traffic and weather channels, and other content, as well as podcast and infotainment services on subscription fee basis; and live, curated, and exclusive and on demand programming services through satellite radio systems and streamed through applications for mobile and home devices, and other consumer electronic equipment.

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