Core Viewpoint - SiriusXM Holdings has faced challenges in maintaining its market position against competitors like Spotify, but recent corporate actions, including a reverse stock split and a spin-off, may provide a fresh start for the company [1][2]. Group 1: Corporate Actions - Liberty Media completed the spin-off of Liberty SiriusXM Holdings, reducing the number of shares outstanding by approximately 12% [2]. - Following the spin-off, SiriusXM enacted a 1-for-10 reverse stock split, which lifted its share price out of the penny-stock range [2]. - The company declared a quarterly dividend of $0.27, resulting in a yield of 4.6%, and announced a $1.166 billion share repurchase program [3][2]. Group 2: Financial Performance - SiriusXM reiterated its full-year revenue forecast of $8.75 billion and adjusted EBITDA of $2.7 billion, while trimming its free cash flow guidance from $1.2 billion to $1 billion due to spin-off-related charges [2]. - The company ended the second quarter with $9 billion in long-term debt, aligning with its target leverage ratio based on the EBITDA forecast [5]. - In the third quarter, SiriusXM's revenue fell 3% to $2.18 billion, and total subscribers decreased by 100,000 sequentially to 33.3 million, down 806,000 from the previous year [6]. Group 3: Market Position and Challenges - SiriusXM has struggled to grow its revenues and audience, facing competition from internet-native platforms and a decline in market share [5][6]. - The potential loss of high-profile talent, such as Howard Stern, when his contract expires next year, poses a risk to the company's subscriber base [6]. - The company is evaluating goodwill and intangible assets inherited from Liberty Media, which may lead to a non-cash write-down in the third quarter [5].

It's the only satellite radio provider, but this isn't such a big advantage now that nearly all of its customers already pay for mobile internet service.Shares of Sirius XM Holdings (SIRI 3.87%) are down a disappointing 56% in 2024, but it probably isn't time to turn our backs on the satellite radio provider.Improving subscriber trends recently inspired Guggenheim analyst Curry Baker to upgrade the stock and raise its price target to $30 per share. Baker gave Sirius XM a buy rating, and the new target impli ...

Core Viewpoint - Sirius XM Holdings has reached a 12-year low in stock price, attributed to slow growth, a plateauing subscriber base, and the impact of stock conversions and splits [1]. Group 1: Market Conditions - The Federal Reserve's recent decision to lower the federal funds rate by 50 basis points is expected to benefit Sirius XM, particularly in the auto market where satellite radio is primarily consumed [3]. - Retention rates for Sirius XM remain high, with a monthly churn rate of 1.5%, but attracting new subscribers is a challenge [4]. Group 2: Political Advertising Impact - The upcoming election season is anticipated to increase political advertising revenue, which could benefit Sirius XM as 20% of its revenue comes from ads on its ad-supported channels [5]. Group 3: Stock Valuation - Sirius XM's stock has dropped 56% in 2024, trading at just 7 times trailing earnings, with a yield of 4.4%, indicating it may be undervalued despite challenges [6].

Long-Term Focussed In-Depth Fundamental Analysis.Former Associate at a $10 billion hedge fund, with 15 years of professional experience in equity markets. Holds a First-Class Honours degree in Financial Economics from the University of London and is a CFA Level III candidate.An avid reader and a Berkshire Hathaway buff.Analyst’s Disclosure: I/we have a beneficial long position in the shares of SIRI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses m ...

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they bel ...

Fresh off a 1-for-10 reverse stock split, is this satellite radio monopoly finally a buy?With shares down around 60% over the last five years, Sirius XM (NASDAQ: SIRI) has battered its long-term investors. And it's no surprise management turned to a 1-for-10 reverse stock split to keep its shares from getting too cheap. But while the split takes Sirius out of penny stock territory, it doesn't resolve the challenges that put it there in the first place. Let's dig deeper to see what the next five years could ...

Sirius XM (SIRI) has been beaten down lately with too much selling pressure. While the stock has lost 22.2% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier.How to Determine if a Stock is OversoldWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that ...

NEW YORK, NEW YORK - SEPTEMBER 12: Grace Van Patten visits SiriusXM Studios on September 12, 2024 in ... [+] New York City. (Photo by Santiago Felipe/Getty Images)Getty ImagesSirius XM Holdings (NASDAQ: SIRI), a leading provider of satellite radio, conducted its 1-for-10 reverse-stock split on September 9. This means that shareholders of the stock received one share for every 10 shares they owned. Investors may view reverse stock splits negatively, as they often signal fewer shares and a short-term problem, ...

Sirius XM (SIRI) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Individual ...

Industry/Company Overview * **Company**: Sirius XM Holdings Inc. (NASDAQ: SIRI) * **Industry**: Satellite radio and streaming audio services Key Points Transaction with Liberty Media * **Transaction**: SiriusXM completed the acquisition of the Liberty tracking stock group, making it a freely independent, publicly traded company. * **Impact**: * Simplified company structure and improved investor thesis. * Accelerated share repurchase, retiring 12% of shares and assuming $1.6 billion in debt. * Focus on investing in the business, maintaining the dividend, and deleveraging. Business Strategy * **Focus**: Delivering unique audio experiences, transforming the business for long-term success, and building on the strength of the core SiriusXM service. * **Key Areas of Investment**: * Strengthening presence in the car, including partnerships with OEMs, offering subscription bundles, and supporting pure-play EVs. * Enhancing 360L platform, focusing on personalized experiences, seamless integration with streaming products, and targeted advertising. * Expanding streaming-only offerings, targeting younger audiences, and improving engagement metrics. * Leveraging advertising assets, including Pandora, podcasting, and SXM Media, to grow the platform and increase revenue. Financial Outlook * **Revenue**: $8.75 billion in revenue, $2.7 billion in EBITDA, and $1 billion of free cash flow for 2024. * **Headwinds**: Economic uncertainty, shifting consumer behaviors, and increased competition. * **Cost Structure**: Focus on cost efficiency to balance short-term results with long-term investments. * **Capital Allocation**: Using cash flow to fund growth opportunities, maintain the dividend, deleverage, and be opportunistic about share repurchases. Other Important Points * **360L Penetration**: Approximately 40% of new car trial starts have 360L, with plans to reach above 50% next year and above 80% in the coming years. * **Streaming-Only Service**: Launched at $9.99, targeting broader audiences and reducing reliance on discounted promotional plans. * **Bundle Opportunities**: Exploring opportunities to bundle services with Pandora, leveraging music discovery and interactive music capabilities. * **Free Access Plan**: Testing and learning into the product, with plans to unlock ad opportunities as volumes increase. * **Content Strategy**: Focusing on human curation and bringing differentiated content to the market, including exclusive content with talent like Alex Cooper.