Does Sirius XM Radio Support a Bullish Run?
With shares of Sirius XM Radio (NASDAQ:SIRI) trading around $3, is SIRI an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
T = Trends for a Stock’s Movement
Sirius XM Radio broadcasts its music, sports, entertainment, comedy, talk, news, traffic, and weather channels in the United States on a subscription fee basis through its two satellite radio systems. Subscribers can also receive music and other channels over the Internet, including through applications for mobile devices. Audio entertainment has always pleased consumers and is a medium that is growing in popularity. Sirius XM Radio is looking to expand its audio entertainment channels to every audio medium possible, which will surely translate to rising profits.
Shares are up recently after Sirius XM Radio’ board confirmed an additional $2 billion stock repurchase. The satellite radio provider announced that it will pay for the repurchases through available cash, future cash flow from operations, and future borrowings. Sirius XM Radio can purchase the shares on the open market or in privately negotiated transactions, including potential arrangements with Liberty Media (NASDAQ:LMCA) and its affiliates, from which the company also said that it will repurchase $500 million shares.