Sirius XM Holdings Inc. (NASDAQ:SIRI) has recently attracted significant attention in the investment community, primarily due to a series of changes in its shareholder structure and performance metrics. According to the latest Form 13F filed with the Securities and Exchange Commission, Connor Clark & Lunn Investment Management Ltd. acquired 176,848 shares of Sirius XM, valued at around $4,032,000, marking their entry into the company as a minor owner with approximately 0.05% of the stock.
This acquisition comes amidst a backdrop of similar moves by other institutional investors, including PNC Financial Services Group Inc., which increased its stake in Sirius XM by 4.4%, bringing its total ownership to 14,856 shares, valued at $339,000. Wealthspire Advisors LLC also added to its holdings by 4.3%, owning 15,686 shares currently worth $358,000.
Proficio Capital Partners LLC and Mill Creek Capital Advisors LLC made similar adjustments, increasing their stakes by 5.9% and 5.8%, respectively. Notably, Geneos Wealth Management Inc. demonstrated a dramatic increase in its holdings by 574.9%, now owning 1,343 shares valued at just $31,000. Cumulatively, hedge funds and institutional investors own approximately 10.69% of Sirius XM's stock.
On March 19th, 2025, shares of Sirius XM rose by 1.99%, closing at $23.08, while the NASDAQ Composite Index recorded a gain of 1.41%. However, despite this uptick, Sirius XM remains 44.52% below its 52-week high of $41.60 achieved on July 5th, 2024. This stock performance reflects a broader market trend but significantly contrasts with its recent highs.
The company reported a substantial earnings performance on January 30th, exceeding consensus estimates. Sirius XM posted an earnings per share (EPS) of $0.83 for the quarter, topping the expected $0.63 by $0.20. Despite the positive earnings report, Sirius XM continues to grapple with a challenging financial situation, indicated by a negative net margin of 24.03%. Nevertheless, the company boasts a favorable return on equity (ROE) of 13.44%.
Additionally, Sirius XM announced a quarterly dividend payment of $0.27 per share, which was disbursed on February 25th, 2025. The ex-dividend date was February 7th, and this dividend yields approximately 4.68% on an annualized basis at a payout ratio of -16.85%, hinting at its financial strategy amid uncertain market conditions.
Analyst ratings have been a mixed bag for Sirius XM. Seaport Res Ptn downgraded its rating to "hold" from "strong-buy" on December 10th, 2024. Meanwhile, Wells Fargo & Company cut its target price from $22.00 to $16.00, labeling the stock as “underweight”. Guggenheim issued a buy rating, adjusting its price target from $30.00 to $29.00, while Morgan Stanley reduced its target price from $23.00 to $21.00. With six analysts suggesting sell ratings, five holding, and four buying, the current consensus rating stands at “Hold” with an average target price of $26.81.
Despite the numerous challenges, the fundamentals for Sirius XM remain intriguing. Its moving averages, with a 50-day at $23.68 and 200-day at $24.82, exhibit fluctuations that investors monitor closely. Additionally, the company’s debt-to-equity ratio stands at 0.93, reflecting a stable balance between debt and equity financing.
In summary, while Sirius XM Holdings Inc. faces significant hurdles with its stock underperforming relative to its industry, the engagement from institutional investors—coupled with strategic financial maneuvers—suggests that there’s still potential for recovery. As the audio entertainment industry evolves, Sirius XM’s adaptive strategies could shape its performance in the longer term.
