Sirius XM Holdings Inc. (NASDAQ:SIRI) Given Buy Rating at Macquarie
Macquarie reiterated their buy rating on shares of Sirius XM Holdings Inc. (NASDAQ:SIRI) in a research note released on Thursday morning. Macquarie currently has a $6.00 price objective on the stock, up from their prior price objective of $5.65.
“We remain firm that Sirius XM can navigate declining auto sales and higher capex/cash taxes in the future. Importantly, it’s embracing the connected car with 360L/Automatic Labs and now with a stake in Pandora has an ‘in’ with digital/mobile platforms. We inch our numbers up including sub metrics and buyback assumptions, which drives our target higher to US$6 from US$5.65 based on 14.5x our ’19E FCF/sh, discounted. Impact Net adds, churn, and ARPU impressed: 1) We raise our already-above-guidance self-pay net adds in ‘17 to ~1.5m from ~1.4m, which reflects an improved outlook for 1.4m from 1.3m. This assumes ’17/’18 SAAR of 17.2m/16.9m per our Auto Analyst T. Katayama relative to management’s view of sales landing in the 16.5m-17m range; 2) 1.7% churn was impressive as customer satisfaction offset vehicle-related churn. We model conservative churn of ~2% for ’17/’18 in line with commentary but expect upside to this metric; and 3) ARPU rose ~3%, beating our expectations; we model 3Q/’17 ARPU of US$13.28/US$13.21, which is up 1.8%/2.3% YoY. 38.7% margin was healthy, in spite of the below investments. We are modeling EBITDA margins of 38.3%/38.7% for ‘17/’18 and EBITDA of US$2.06bn vs guidance of US$2.05bn in ‘17. We model slightly elevated R&D/marketing investments for 360L, but expect this to be offset by the remaining cost buckets and a levelling off of programming. We also remain optimistic on the CRB decision that will come mid- Dec; we model a 100bps bump in the ’18 royalty rate.”,” Macquarie’s analyst wrote.
A number of other brokerages have also issued reports on SIRI. Vetr lowered Sirius XM Holdings from a hold rating to a sell rating and set a $5.12 price objective for the company. in a report on Monday, June 5th. BidaskClub raised Sirius XM Holdings from a buy rating to a strong-buy rating in a research note on Saturday, July 1st. Finally, Zacks Investment Research raised Sirius XM Holdings from a sell rating to a hold rating in a research note on Wednesday, July 12th. One analyst has rated the stock with a sell rating, seven have issued a hold rating and eight have assigned a buy rating to the company. The company currently has a consensus rating of Hold and an average price target of $5.56.
Sirius XM Holdings (NASDAQ SIRI) traded up 0.34% during mid-day trading on Thursday, hitting $5.83. The stock had a trading volume of 4,128,341 shares. Sirius XM Holdings has a 12-month low of $4.05 and a 12-month high of $5.89. The stock has a market cap of $26.89 billion, a price-to-earnings ratio of 34.29 and a beta of 1.11. The company has a 50-day moving average of $5.37 and a 200-day moving average of $5.09.
Sirius XM Holdings (NASDAQ:SIRI) last issued its quarterly earnings data on Thursday, July 27th. The company reported $0.04 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.04. Sirius XM Holdings had a negative return on equity of 99.07% and a net margin of 15.47%. The business had revenue of $1.35 billion during the quarter, compared to analyst estimates of $1.32 billion. During the same period in the prior year, the company posted $0.04 EPS. The business’s revenue for the quarter was up 9.1% compared to the same quarter last year. On average, analysts anticipate that Sirius XM Holdings will post $0.18 earnings per share for the current fiscal year.
The business also recently declared a quarterly dividend, which will be paid on Thursday, August 31st. Stockholders of record on Thursday, August 10th will be paid a $0.01 dividend. This represents a $0.04 dividend on an annualized basis and a dividend yield of 0.69%. The ex-dividend date of this dividend is Tuesday, August 8th. Sirius XM Holdings’s dividend payout ratio (DPR) is presently 25.00%.
A number of institutional investors have recently bought and sold shares of SIRI. Concorde Asset Management LLC acquired a new position in Sirius XM Holdings during the first quarter valued at approximately $128,000. State of Alaska Department of Revenue acquired a new position in Sirius XM Holdings during the first quarter valued at approximately $544,000. Nisa Investment Advisors LLC increased its position in Sirius XM Holdings by 18.1% in the first quarter. Nisa Investment Advisors LLC now owns 232,026 shares of the company’s stock valued at $1,195,000 after buying an additional 35,572 shares during the last quarter. DnB Asset Management AS increased its position in Sirius XM Holdings by 10.1% in the first quarter. DnB Asset Management AS now owns 198,715 shares of the company’s stock valued at $1,023,000 after buying an additional 18,300 shares during the last quarter. Finally, Atria Investments LLC increased its position in Sirius XM Holdings by 26.0% in the first quarter. Atria Investments LLC now owns 66,208 shares of the company’s stock valued at $341,000 after buying an additional 13,666 shares during the last quarter. 22.03% of the stock is currently owned by hedge funds and other institutional investors.
Sirius XM Holdings Company Profile
Sirius XM Radio Inc broadcasts its music, sports, entertainment, comedy, talk, news, traffic and weather channels in the United States on a subscription fee basis through its two satellite radio systems. Subscribers can also receive certain of its music and other channels over the Internet, including through applications for mobile devices.
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