Sirius XM Holdings Inc. (NASDAQ:SIRI) shares are down a bit today despite earnings numbers which seemed quite positive being reported yesterday. While the company reported that they saw the best annual subscriber growth since 2007, and they earned $0.03 per share on $135 in earnings, investors remain a bit weary of the company’s potential to continue growing.
$0.03 per share matched Wall Street’s forecast, while EBITDA increased year-over-year by 4 percent and revenue also jumped up to $1.20 billion. Most significant though was the fact that the company added 2.28 million new subscribers for the year 2015, a 30 percent increase over the previous year. However, Sirius XM Holdings Inc. (NASDAQ:SIRI) predicted that 2016 will bring in just 1.4 million new subscribers, and this decrease has some investors a bit worried.
“We expect continued growth, even as we make substantial investments across many areas of our business,” Jim Meyer, CEO of Sirius XM Holdings Inc. explained. “We expect to end 2016 with about 31 million subscribers and about $4.9 billion of revenue. We expect to produce about $1.78 billion of adjusted EBITDA and to convert the vast majority of that, or about $1.4 billion, to free cash flow. Continued share repurchases will mean that free cash flow per share should grow even faster.”
The stock is down 2.24% or $0.08 following the news, hitting $3.49 per share. About 35.38M shares traded hands or 11.36% up from the average. SIRI has declined 3.77% since June 29, 2015 and is downtrending. It has outperformed the S&P500 by 3.74%.
From a total of 6 analysts covering Sirius XM Holdings (NASDAQ:SIRI) stock, 4 rate it a “Buy”, 0 a “Sell”, and 2 a “Hold”. This means that 67% of the ratings are positive. The highest target price is $5.25 while the lowest target price is $4.25. The mean of all analyst targets is $4.66 which is 33.52% above today’s ($3.49) stock price. Sirius XM Holdings was the topic of 10 analyst reports since July 29, 2015 according to the firm StockzIntelligence Inc. RBC Capital Markets maintained shares on February 3 with a “Sector Perform” rating. Wunderlich upgraded shares to a”Buy” rating and a $4.60 target share price in their report from a July 29. Pivotal Research maintained SIRI stock in a recent report from October 22 with a “Buy” rating. Finally, Barclays Capital maintained the stock with a “Overweight” rating in a report they issued on an August 14.
The institutional sentiment increased to 0.82 in Q2 2015. It’s up 0.01, from 0.81 in 2015Q2. The ratio improved, as 35 funds sold all their Sirius XM Holdings Inc. shares they owned while 154 reduced their positions. 45 funds bought stakes while 110 increased their total positions. Institutions now own 1.08 billion shares which is 11.16% less than the previous share count of 1.22 billion in 2015Q2.
Sarbit Advisory Services Inc. holds 18.2% of its total portfolio in Sirius XM Holdings Inc., equating to 31.57 million shares. Madison Street Partners Llc owns 685,418 shares representing 9.71% of their total US portfolio. Moreover, Brahman Capital Corp. has 7.03% of their total portfolio invested in the company, equating to 95.21 million shares. The New York-based Highline Capital Management Llc has a total of 4.83% of their portfolio invested in the stock. Long Oar Global Investors Llc, a New York-based fund reported 200,000 shares owned.
Sirius XM Holdings Inc., through its subsidiaries, provides satellite radio services in the United States. The company broadcasts music plus sports, entertainment, comedy, talk, news, traffic, and weather programs, including various music genres ranging from rock, pop and hip-hop to country, dance, jazz, Latin, and classical; live play-by-play sports from principal leagues and colleges; multitude of talk and entertainment channels for various audiences; national, international, and financial news; and local traffic reports for 22 metropolitan markets. It also streams music and non-music channels over the Internet; and offer applications to allow consumers to access its Internet radio service on smartphones and tablet computers. In addition, the company distributes satellite radios through the sale and lease of new vehicles; and acquires subscribers through the sale and lease of previously owned vehicles with factory-installed satellite radios. Its satellite radio systems include satellites, terrestrial repeaters, and other satellite facilities; studios; and radios. Further, the company provides Backseat TV, a television content designed primarily for children; Travel Link, a suite of data services that include graphical weather, fuel prices, sports schedule and scores, and movie listings; real-time traffic services; and real-time weather services. Additionally, it offers a portfolio of location-based services through two-way wireless connectivity, including safety, security, convenience, maintenance and data services, remote vehicles diagnostics, stolen or parked vehicle locator services, and monitoring of vehicle emission systems. The company also sells satellite and Internet radios directly to consumers through its Website, as well as through national and regional retailers. Sirius XM Holdings Inc. was founded in 1990 and is headquartered in New York, New York.