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With General Motors (NYSE:GM), Ford (NYSE:F), and Chrysler all reporting positive sales growth for the month of December, shares of the satellite radio provider Sirius XM Radio (NASDAQ:SIRI) rose slightly on Thursday morning, adding to a series of recent gains that pushed the stock to a new 52-week high of $3.04 per share on Wednesday.
Last month’s auto sales, coupled with the appointment of interim Chief Executive Officer James Meyer, who replaced outgoing Mel Karmazin on December 19, have put the company in a far different position than it was in over the summer, when bearish analysts predicted that the stock would never trade above $2 per share again.
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While Congress’s passage of the fiscal cliff deal has also contributed to the stock’s gains by spurring markets higher on Wednesday, increasing sales of automobiles are of particular importance to Sirius, given that many models of General Motors, Ford, and Chrysler vehicles come equipped with the company’s satellite radio. Therefore, any increase in automobile sales will add a minor boost to the company’s sales and profits. As a report today showed, all three automakers saw December sales rise.
While the satellite radio provider is expected to announce the number of subscriber additions for the past year at the at the Citi Global Internet, Media and Telecommunications Conference on January 9, analysts have already predicted that the company met its goal of 2 million net subscribers for 2012, as the company added more than 1.5 million in the first three quarters.
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