Barrington Research Reaffirms Outperform Rating for Sirius XM

Barrington Research has reaffirmed its outperform rating for shares of Sirius XM Holdings Inc. (NASDAQ: SIRI) in a report released on October 30, 2023. The firm has set a price target of $28.00 on the stock, reflecting a positive outlook amid varying analyst opinions.

In its report, Barrington Research provided estimates for Sirius XM’s earnings, projecting $0.73 EPS for Q4 2025 and $2.74 EPS for the full fiscal year of 2025. For the subsequent years, the firm anticipates $3.03 EPS in FY2026 and $3.18 EPS in FY2027, with a further increase to $3.45 EPS by FY2028.

Several other equity analysts have also shared their insights on Sirius XM. On October 31, 2023, JPMorgan Chase & Co. raised its price target for the company from $19.00 to $20.00, while assigning an “underweight” rating. Similarly, Wells Fargo & Company lowered its target from $19.00 to $18.00 and maintained an “underweight” rating. In contrast, Rosenblatt Securities increased its target from $22.00 to $23.00, giving the stock a “neutral” rating. On August 15, 2023, Zacks Research upgraded Sirius XM from a “strong sell” to a “hold” rating, and Benchmark reiterated a “buy” rating with a target price raised to $30.00 on the same day as JPMorgan’s update.

Currently, the stock has received a mix of ratings: one analyst rates it as a Strong Buy, three as Buy, two as Hold, and four as Sell. According to MarketBeat, Sirius XM holds a consensus rating of “Hold” with an average target price of $24.29.

Sirius XM’s recent quarterly earnings report, released on October 30, 2023, showed the company earning $0.84 EPS, which exceeded the consensus estimate of $0.79 EPS by $0.05. The company reported revenues of $2.16 billion, surpassing the expected $2.14 billion. Despite these positive figures, Sirius XM’s revenue was down 0.6% year-over-year, with a return on equity of 3.73% and a net margin of -26.41%.

Sirius XM also announced a quarterly dividend of $0.27 per share, which will be paid on November 21, 2023. Stockholders of record on November 5 will receive this dividend, resulting in an annualized dividend of $1.08 and a yield of 4.9%. The company’s current dividend payout ratio stands at 38.16%.

In insider trading, Director Kristina Salen sold 1,845 shares on November 3, 2023, at an average price of $21.64, totaling approximately $39,926. Following this transaction, Salen holds 19,969 shares valued at around $432,129, marking an 8.46% decrease in ownership.

Institutional investor activity has also been notable, with AQR Capital Management LLC increasing its holdings in Sirius XM by 165.2% in Q2, now owning over 5.19 million shares. Other significant increases were reported by Fuller & Thaler Asset Management Inc., LSV Asset Management, and Ameriprise Financial Inc., contributing to a collective institutional ownership of 10.69% of the company’s stock.

Sirius XM Holdings Inc. operates as an audio entertainment company, providing music, sports, news, and talk content through subscription services across various platforms, including satellite and streaming applications. As the company navigates fluctuating market conditions and changing consumer preferences, these analyst ratings and financial metrics will be closely monitored by investors and stakeholders alike.