Why Sirius XM Stock Just Jumped 8%

Core Viewpoint - Sirius XM Holdings stock remains undervalued with a price-to-free-cash-flow ratio of 10 and a dividend yield of approximately 4.3% [1] - Berkshire Hathaway has increased its stake in Sirius, indicating confidence in the company's future [2] Group 1: Stock Performance and Valuation - Sirius shares have appreciated by 8.1% following Berkshire Hathaway's announcement of increased holdings [1] - The stock has gained nearly 20% over the past month, yet it still trades at a low P/E ratio of 7, with projected earnings growth of 12% annually over the next five years [3] - The enterprise value-to-free-cash-flow ratio stands at 15, suggesting that despite high debt levels, the company generates sufficient cash flow [3] Group 2: Berkshire Hathaway's Investment - Berkshire Hathaway purchased 3.6 million additional shares of Sirius from October 9 to October 11, raising its total stake to 108.7 million shares, which is 32% of all outstanding shares [2] - Directly, Berkshire owns about 6.6% of Sirius shares, while a subsidiary holds an additional 25.5% [2]