On June 12, 2023, Credit Suisse AG made headlines in the world of finance by raising its ownership stake in Sirius XM Holdings Inc. by a significant 7.8%. According to internal company records disclosed through Securities and Exchange Commission filings, Credit Suisse AG currently holds more than 1.7 million shares of Sirius XM’s stock, with an estimated net worth of over $10 million.
Sirius XM Holdings is a prominent audio entertainment provider that operates through two major segments: Sirius XM and Pandora and Off-Platform. The company was founded more than three decades ago on May 17, 1990, with headquarters in New York City.
Sirius XM recently released its quarterly earnings results on April 27th, posting earnings per share (EPS) of $0.06 for the quarter—on par with analysts’ consensus estimates. Total revenue for the quarter reached $2.14 billion, which fell marginally short of analysts’ expectations of $2.17 billion. While year-over-year revenue growth was down by 2.1%, the business’s net margin stood at an impressive 12.69%.
Over the past few years, Sirius XM has been making strategic investments aimed at enhancing its product offerings while continuing to attract new customers across different service platforms. For instance, in January 2019, it acquired Pandora for approximately $3.5 billion to expand its reach into music streaming services beyond satellite radio alone.
Equities analysts have forecast that Sirius XM will post EPS of around $0.3 for this fiscal year.
As Credit Suisse AG ramped up its stake in Sirius XM Holdings Inc., it indicates increased investor confidence levels towards the audio entertainment giant’s prospects despite global economic uncertainty amid COVID-19 pandemic concerns and increasingly unpredictable geopolitical tensions worldwide.
In summary, Credit Suisse AG’s latest move to increase its stake in Sirius XM is indicative of growing interest from investors seeking to take advantage of a potentially profitable investment opportunity in this leading audio entertainment provider, which has continued to exhibit steady growth over the years. Despite the current economic headwinds, Sirius XM remains optimistic about its future prospects, given its market-leading position and recent strategic investments aimed at expanding into new service segments.
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Institutional Investors Show Growing Interest in Sirius XM Holdings, Inc. Despite Mixed Analyst Ratings
Sirius XM Holdings, Inc. continues to draw attention from institutional investors as they modify their respective holdings in the company. A report indicates that McElhenny Sheffield Capital Management LLC has established a new position in Sirius XM in the fourth quarter by investing $29,000, while Accurate Wealth Management LLC spent $30,000 on a new position during the same period. Harvest Fund Management Co. Ltd lifted its stake by 617.6% to 5,454 shares worth $32,000 after buying an additional 4,694 shares during the last quarter. Ballentine Partners LLC also bought a new position in shares of Sirius XM in the fourth quarter for approximately $61,000. Finally, Covestor Ltd grew its holdings by 133.7% during the first quarter with an additional 5,474 shares worth $63,000.
Institutional investors’ total holding in Sirius XM was reported at 10.10% on June 12th as NASDAQ:SIRI traded down $0.06 during trading hours and closed at $3.75 with a market cap of $14.51 billion. The stock has been volatile recently with a moving average of $3.73 over the last fifty days and $4.68 over the last two hundred days.
Headquartered in New York City since May 1990, Sirius XM Holdings is primarily focused on providing audio entertainment services through SiriusXM and Pandora segments and off-platform services.
The company paid out a quarterly dividend to shareholders on May 24th following its record date of May 5th at a per-share rate of $0.0242 representing an annualized dividend yield of 2.58%. The payout ratio is currently at 35.71%.
Several reports have surrounded SIRI’s investment prospects lately with Rosenblatt Securities cutting it from buy to neutral while bringing down their price objective from$7.40 to $4.80 in their February 22nd report. Another report by Pivotal Research saw their price objective for SIRI drop from $5.00 to $4.00 released on April 27th, whereas, Morgan Stanley’s rating decreased the price target from $5.40 to $4.40 with an “underweight” rating on April 13th. Similarly, two investment analysts have rated the stock sell-with-a-hold rating and three with a buy rating sounding varied sentiments for SIRI’s potential.
Overall, the average rating for Sirius XM stock remains “Hold” according to Bloomberg while its average price target stands at $5.06 indicating mixed signals on SIRI’s prospects within the industry and among investors alike.