Sirius XM (NASDAQ:SIRI) Shares Gap Down Following Weak Earnings

Key Points

• Sirius XM shares fell sharply, opening at $30.00 versus a prior close of $32.59, after quarterly earnings per share came in at $0.70—$0.08 below estimates. Revenue reached $2.16 billion, slightly ahead of expectations and up 1% year over year.
• The company raised its fiscal 2026 outlook but expects approximately $8.5 billion in revenue, below the $8.6 billion analyst consensus. The departure of COO Wayne Thorsen amid restructuring adds execution uncertainty.
• Sirius XM declared a quarterly dividend of $0.27 per share, equivalent to a 3.5% annualized yield. Analysts remain mixed, with the stock carrying a consensus “Hold” rating and a $29.64 price target.

Sirius XM Holdings Inc. (NASDAQ:SIRI - Get Free Report)'s share price gapped down before the market opened on Thursday following a dissappointing earnings announcement. The stock had previously closed at $32.59, but opened at $30.00. Sirius XM shares last traded at $31.2250, with a volume of 1,412,538 shares changing hands.

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 return on equity of 9.19% and a net margin of 9.86%.The firm had revenue of $2.16 billion for the quarter, compared to analyst estimates of $2.14 billion. During the same quarter last year, the company earned $0.57 earnings per share. The company's quarterly revenue was up 1.0% compared to the same quarter last year.

Sirius XM Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, August 26th. Shareholders of record on Monday, August 10th will be issued a dividend of $0.27 per share. This represents a $1.08 dividend on an annualized basis and a yield of 3.5%. The ex-dividend date is Monday, August 10th. Sirius XM's dividend payout ratio (DPR) is presently 45.57%.

More Sirius XM News

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

• Positive Sentiment: Wells Fargo upgraded Sirius XM, while Rosenblatt reaffirmed its Buy rating and maintained a $45 price target—about 38% above the referenced share price. The recommendations provide additional support for the stock’s bullish momentum. Sirius XM upgraded at Wells Fargo Rosenblatt reiterates Buy rating
• Positive Sentiment: The company raised its fiscal 2026 outlook, signaling improved confidence in its earnings trajectory. SiriusXM also declared a quarterly dividend of $0.27 per share, payable August 26, preserving its appeal to income-focused investors. Sirius XM raises fiscal 2026 outlook Sirius XM dividend update
• Neutral Sentiment: Second-quarter revenue was $2.16 billion, slightly above the $2.14 billion consensus estimate. Net margin was 9.86% and return on equity was 9.19%, indicating continued profitability, although the quarter’s overall results were mixed. SiriusXM second-quarter results
• Negative Sentiment: Adjusted earnings of $0.70 per share missed analysts’ $0.78 consensus by $0.08. In addition, fiscal 2026 revenue guidance of approximately $8.5 billion is below the $8.6 billion analyst estimate, limiting the positive impact of the raised outlook.
• Negative Sentiment: Chief Operating Officer Wayne Thorsen is leaving amid a restructuring. The management transition may create execution uncertainty as Sirius XM works to streamline operations. Sirius XM COO departure

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on SIRI. Citigroup reissued a "sell" rating and issued a $22.00 price objective (up from $19.00) on shares of Sirius XM in a research note on Monday, May 4th. UBS Group set a $30.00 target price on Sirius XM in a report on Wednesday. Benchmark reissued a "buy" rating on shares of Sirius XM in a research note on Wednesday. Wells Fargo & Company set a $30.00 price target on Sirius XM and gave the stock an "equal weight" rating in a report on Monday. Finally, Guggenheim reaffirmed a "buy" rating on shares of Sirius XM in a research report on Wednesday, June 17th. Four research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $29.64.

Insider Activity

In other news, insider Scott Andrew Greenstein sold 20,744 shares of the firm's stock in a transaction dated Wednesday, May 27th. The stock was sold at an average price of $29.83, for a total value of $618,793.52. Following the completion of the sale, the insider directly owned 20,163 shares in the company, valued at $601,462.29. This trade represents a 50.71% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. 3.27% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Sunbelt Securities Inc. increased its holdings in shares of Sirius XM by 158.5% during the first quarter. Sunbelt Securities Inc. now owns 1,295 shares of the company's stock valued at $30,000 after acquiring an additional 794 shares in the last quarter. Root Financial Partners LLC lifted its holdings in shares of Sirius XM by 612.8% in the 1st quarter. Root Financial Partners LLC now owns 1,390 shares of the company's stock worth $32,000 after purchasing an additional 1,195 shares in the last quarter. Rossby Financial LCC lifted its holdings in shares of Sirius XM by 57.7% in the 4th quarter. Rossby Financial LCC now owns 1,621 shares of the company's stock worth $32,000 after purchasing an additional 593 shares in the last quarter. Western Wealth Management LLC acquired a new stake in Sirius XM in the 1st quarter valued at $33,000. Finally, Altshuler Shaham Ltd increased its stake in Sirius XM by 36.7% during the 1st quarter. Altshuler Shaham Ltd now owns 1,553 shares of the company's stock valued at $36,000 after purchasing an additional 417 shares in the last quarter. Institutional investors own 10.69% of the company's stock.

Sirius XM Stock Down 4.0%

The company has a debt-to-equity ratio of 0.83, a quick ratio of 0.44 and a current ratio of 0.44. The stock's 50 day simple moving average is $29.30 and its 200 day simple moving average is $25.23. The firm has a market cap of $10.53 billion, a P/E ratio of 13.24, a price-to-earnings-growth ratio of 0.68 and a beta of 0.95.

Sirius XM Company Profile

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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