Analysts at Buckingham Research upped their rating on shares of Sirius XM Holdings Inc. (NASDAQ:SIRI) from Neutral to Buy in their opinion released on January 28. JP Morgan analysts bumped their recommendation on SIRI stock from Underweight to Overweight in a separate flash note to investors on January 02. Analysts at Credit Suisse downgraded the stock to a Neutral call from its previous Outperform stance, in a research note that dated back to September 25.
In the period that ended February 28, 2019, short interest in Sirius XM Holdings Inc. (NASDAQ:SIRI) stock is on the rise. The 2.86% advance could be an indication that investors and traders expect a deterioration in the stock price, often as a result of a deterioration in the business’ fundamentals. The average analyst recommendations at 2.4 suggests buying these shares. Between February 15 and February 28, the total number of shorted shares amounted to 180 million shares. That was 5,000,000 more shares than the total of 175 million shares in the space of prior two weeks, which means more traders or funds betting that the stock will go down. Average daily volume for SIRI at the February 28th settlement plunged to 24,554,007, as compared to 29,562,632 at the February 15th report. That brought days to cover to 7.328206, a 23.98% increase from the 5.91082 days to cover recorded at the prior short interest data release.
By watching the trading activity of corporate insiders, it will become easier to get a sense of Sirius XM Holdings Inc. (NASDAQ:SIRI)’s prospects.
Sirius XM Holdings Inc. (SIRI) is expected to jump by 14.29 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $8-month high price target. This represents a whopping 31.36 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $7, which represents a return potential of 14.94 percent when compared to the closing price of the stock of $6.09 on Wednesday, March 13. The lowest price target for the stock is $5.5 — slightly more than -9.69 percent from SIRI’s current share price.
The shares are currently floating around the first support level of $6.03. Below this, the next support is placed in the zone of $5.96. Till the time, the SIRI stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 56.1 on daily chart, which may remain a cause for concern. If the price breaks below $5.96 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $6.17 mark may result into a pull-back move towards $6.24 level.
SIRI shares dropped -0.05 points or -0.81 percent on Wednesday to $6.09 with a heavy trade volume of 32.376 million shares. After opening the session at $6.1, the shares went as high as $6.18 and as low as $6.04, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $26.7 billion and now has 4.38 billion shares outstanding. Sirius XM Holdings Inc. (SIRI) stock has gained 3.92 percent of market value in 21 trading days.
SIRI stock has a trailing 3-year beta of 1.04, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $0.26 a share in the trailing twelve months. The stock’s value has surged 6.65 percent year to date (YTD) against a decline of -7.73 percent in 12 month’s time. The company’s shares still trade -20.91 percent away from its 1-year high of $7.70 and 11.13 percent up from 52-week low of $5.48. The average consensus rating on the company is 2.4, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.
Shares of Sirius XM Holdings Inc. (SIRI) are trading at a P/E ratio of 34.18 times earnings reported for the past 12 months. The industry SIRI operates in has an average P/E of 24.34. Its P/E ratio went as low as 5.66X and as high as 59.07 over the 5-year span. Further, it is sporting a 4.62 on the Price-to-Sales ratio. Compare this with the industry average P/S of 5.36. 60 percent is the gross profit margin for Sirius XM Holdings Inc. and operating margin sits at 29.9 percent. Along with this, the net profit margin is 20.4 percent.
SIRI will be showing off its Q1 earnings on April 25. Analysts are forecasting revenue to climb 29.5 percent to $1.78B in the next fiscal quarter, while earnings are seen soaring by nearly -16.67 percent to $0.05 per share. History has shown that shares in Sirius XM Holdings Inc. have gone down on 18 different earnings reaction days and are predicted to add 0.02 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.06 per share, in line with the $0.06, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $1.5B, better than the $1.48B analysts expected. Earnings are estimated to increase by 46.3 percent this year, 19.64 percent next year and continue to increase by 8.66 percent annually for the next 5 years.