Sirius XM Target of Unusually High Options Trading (NASDAQ:SIRI)

Key Points

• Sirius XM saw unusually heavy call-option activity, with investors purchasing 70,533 calls—about 243% above its average volume of 20,549.
• The stock rose $0.45 to $28.84, while the company’s latest quarterly results showed revenue of $2.16 billion, up 1% year over year, but earnings per share of $0.70 missed analysts’ $0.78 estimate.
• Sirius XM declared a quarterly dividend of $0.27, equivalent to $1.08 annually and a 3.7% yield. Analysts maintain a consensus “Hold” rating with an average price target of $30.92.

Sirius XM Holdings Inc. (NASDAQ:SIRI - Get Free Report) was the target of some unusual options trading on Friday. Stock investors bought 70,533 call options on the company. This is an increase of approximately 243% compared to the average volume of 20,549 call options.

Sirius XM Stock Performance

Sirius XM stock traded up $0.45 during trading hours on Friday, hitting $28.84. The stock had a trading volume of 675,677 shares, compared to its average volume of 4,957,043. The company has a 50-day moving average of $29.56 and a two-hundred day moving average of $26.22. 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 $9.72 billion, a PE ratio of 11.54, a price-to-earnings-growth ratio of 0.62 and a beta of 0.95. Sirius XM has a fifty-two week low of $19.76 and a fifty-two week high of $32.66.

Sirius XM (NASDAQ:SIRI - Get Free Report) last announced its quarterly earnings data 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). The firm 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%.Sirius XM's revenue for the quarter was up 1.0% compared to the same quarter last year. During the same period in the previous year, the business posted $0.57 EPS. On average, equities research analysts anticipate that Sirius XM will post 3.01 EPS for the current fiscal year.

Sirius XM Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 26th. Stockholders of record on Monday, August 10th will be paid a $0.27 dividend. The ex-dividend date is Monday, August 10th. This represents a $1.08 dividend on an annualized basis and a dividend yield of 3.7%. Sirius XM's dividend payout ratio is currently 43.20%.

Insider Buying and Selling

In related news, Director Jonelle Procope sold 16,672 shares of the business's stock in a transaction that occurred on Thursday, August 6th. The stock was sold at an average price of $29.97, for a total value of $499,659.84. Following the completion of the sale, the director directly owned 18,354 shares in the company, valued at approximately $550,069.38. The trade was a 47.60% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Scott Andrew Greenstein sold 20,744 shares of the company's stock in a transaction that occurred on Wednesday, May 27th. The stock was sold at an average price of $29.83, for a total value of $618,793.52. Following the sale, the insider directly owned 20,163 shares of the company's stock, valued at $601,462.29. The trade was a 50.71% decrease in their position. The SEC filing for this sale provides additional information. 3.27% of the stock is currently owned by company insiders.

Institutional Trading of Sirius XM

Institutional investors have recently made changes to their positions in the business. Jones Financial Companies Lllp acquired a new position in Sirius XM in the second quarter worth about $25,000. Aberdeen Wealth Management LLC bought a new stake in shares of Sirius XM in the 2nd quarter valued at approximately $26,000. Sunbelt Securities Inc. grew its stake in shares of Sirius XM by 158.5% in the 1st quarter. Sunbelt Securities Inc. now owns 1,295 shares of the company's stock valued at $30,000 after purchasing an additional 794 shares during the period. Root Financial Partners LLC raised 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 buying an additional 1,195 shares in the last quarter. Finally, Gables Capital Management Inc. acquired a new position in shares of Sirius XM in the 2nd quarter worth approximately $32,000. 10.69% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

SIRI has been the subject of a number of research analyst reports. UBS Group set a $30.00 target price on shares of Sirius XM in a research report on Wednesday, July 29th. Evercore set a $28.00 price objective on Sirius XM in a research report on Friday, May 1st. Rosenblatt Securities reaffirmed a "buy" rating and issued a $45.00 target price on shares of Sirius XM in a report on Tuesday, July 28th. Barrington Research lifted their price target on Sirius XM from $28.00 to $32.00 and gave the stock an "outperform" rating in a research report on Monday, May 4th. Finally, Guggenheim reissued a "buy" rating and issued a $35.00 price objective (up from $34.00) on shares of Sirius XM in a research report on Friday, July 31st. Four research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $30.92.

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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