#4 - Sirius XM (NASDAQ:SIRI)
Sirius XM (NASDAQ: SIRI) - Investing in a company that has a base of 34 million subscribers and has delivered positive results to shareholders for 10 consecutive years might seem like an obvious choice. However, you’ll have to be a bit contrarian to buy and hold Sirius XM stock, which is one the most shorted stocks on the NASDAQ exchange. There are speculators who are convinced that the technology behind satellite radio is on the way out. But even as the connected car is becoming a reality, Sirius continues to grow its subscriber base. And although the rate of that growth is slowing, it is still growing. There are other reasons to like the stock as well. To begin with, it offers a dividend. And while SIRI’s 0.8% dividend is not much to talk about right now, it’s been growing over the last couple of years, which is an indication that Sirius XM does not expect to be seeing declining revenue in the near future. The company recently completed a merger with Pandora. While an acquisition of this size will certainly choke profits in the short-term, the company is now well positioned to become a player in the streaming audio category, an area that they have struggled to enter. Plus, analysts are convinced that the two companies will be stronger together (i.e. more profitable) and those profits will either be re-invested in more acquisitions or returned to shareholders either with increasing dividend yields or through stock buybacks.
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.
Read More - Current Price
- $3.04
- Consensus Rating
- Hold
- Ratings Breakdown
- 4 Buy Ratings, 5 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $4.42 (45.3% Upside)
