Sirius XM (SIRI) Cut to “Sell” at Zacks Investment Research

Zacks Investment Research lowered shares of Sirius XM (NASDAQ:SIRI) from a hold rating to a sell rating in a report issued on Friday, January 5th.

According to Zacks, “Shares of Sirius XM have underperformed its industry in the last six months. The stock lost 3.2%, compared with the industry's growth of 7%. Similar to the previous quarter, high costs are likely to hurt the company's bottom line in the fourth quarter of 2017 as well. The slowdown in auto sales is also a concern. the company's high debt levels are also worrisome. Increased leverage coupled with stiff competition may act as headwinds for the company going forward. However, the company's healthy net subscriber growth is a positive. Moreoever, the company’s decision to raise its full-year 2017 guidance for revenue, adjusted EBITDA and free cash flow is also impressive.”

Several other equities analysts also recently weighed in on the company. Bank of America set a $7.00 target price on Sirius XM and gave the company a buy rating in a research report on Thursday, October 12th. Royal Bank of Canada initiated coverage on Sirius XM in a research report on Friday, September 15th. They issued a sector perform rating and a $6.00 target price on the stock. Pivotal Research reaffirmed a buy rating and issued a $6.80 price target (up previously from $6.25) on shares of Sirius XM in a report on Wednesday, October 25th. Piper Jaffray Companies set a $7.00 price target on Sirius XM and gave the company a buy rating in a report on Wednesday, October 11th. Finally, Gabelli increased their price target on Sirius XM from $4.75 to $6.10 and gave the company a buy rating in a report on Thursday, October 26th. Four analysts have rated the stock with a sell rating, six have assigned a hold rating, nine have issued a buy rating and one has assigned a strong buy rating to the company’s stock. Sirius XM presently has a consensus rating of Hold and a consensus price target of $5.94.

Sirius XM (NASDAQ:SIRI) opened at $5.50 on Friday. The stock has a market capitalization of $25,530.00, a P/E ratio of 30.56, a price-to-earnings-growth ratio of 1.58 and a beta of 1.12. Sirius XM has a 1 year low of $4.52 and a 1 year high of $5.89. The company has a current ratio of 0.19, a quick ratio of 0.18 and a debt-to-equity ratio of -6.41.

Sirius XM (NASDAQ:SIRI) last released its earnings results on Wednesday, October 25th. The company reported $0.06 earnings per share for the quarter, beating the consensus estimate of $0.04 by $0.02. The business had revenue of $1.38 billion for the quarter, compared to the consensus estimate of $1.37 billion. Sirius XM had a negative return on equity of 93.51% and a net margin of 16.71%. The business’s quarterly revenue was up 8.0% compared to the same quarter last year. During the same quarter last year, the business posted $0.04 earnings per share. equities analysts forecast that Sirius XM will post 0.19 EPS for the current fiscal year.

In other Sirius XM news, EVP Patrick L. Donnelly sold 1,374,479 shares of the firm’s stock in a transaction on Tuesday, December 5th. The stock was sold at an average price of $5.70, for a total transaction of $7,834,530.30. Following the completion of the sale, the executive vice president now owns 227,430 shares of the company’s stock, valued at $1,296,351. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO James E. Meyer sold 172,704 shares of the firm’s stock in a transaction on Tuesday, December 12th. The stock was sold at an average price of $5.68, for a total value of $980,958.72. Following the sale, the chief executive officer now directly owns 3,377,085 shares of the company’s stock, valued at approximately $19,181,842.80. The disclosure for this sale can be found here. 1.06% of the stock is owned by company insiders.

Several hedge funds and other institutional investors have recently modified their holdings of the company. Scotia Capital Inc. grew its stake in shares of Sirius XM by 0.8% in the second quarter. Scotia Capital Inc. now owns 25,494 shares of the company’s stock valued at $139,000 after buying an additional 206 shares in the last quarter. GM Advisory Group Inc. grew its stake in shares of Sirius XM by 0.9% in the second quarter. GM Advisory Group Inc. now owns 33,185 shares of the company’s stock valued at $182,000 after buying an additional 290 shares in the last quarter. Toronto Dominion Bank grew its stake in shares of Sirius XM by 9.7% in the second quarter. Toronto Dominion Bank now owns 20,278 shares of the company’s stock valued at $111,000 after buying an additional 1,799 shares in the last quarter. PNC Financial Services Group Inc. grew its stake in shares of Sirius XM by 1.6% in the second quarter. PNC Financial Services Group Inc. now owns 113,475 shares of the company’s stock valued at $621,000 after buying an additional 1,828 shares in the last quarter. Finally, Blair William & Co. IL grew its stake in shares of Sirius XM by 5.9% in the second quarter. Blair William & Co. IL now owns 40,453 shares of the company’s stock valued at $221,000 after buying an additional 2,242 shares in the last quarter. 19.57% of the stock is owned by institutional investors and hedge funds.

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About Sirius XM

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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