This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Sirius XM Stock Breaks the Buck Barrier

Stocks in this article: SIRI

(Sirius XM article updated to reflect analysts insight on stock price movement.)

NEW YORK ( TheStreet) -- Sirius XM (SIRI) stock has surged above the $1 a share mark on Wednesday afternoon, breaking through the penny-stock barrier for the first time since 2008.

Sirius XM stock skyrocketed 11.6% to $1.10 on the day and closed up 9.6% at $1.05.

Standard & Poor's analyst Tuna Amobi said that the lead-up to Sirius's rally Wednesday stems from investors' perspective that the company has weathered most of its troubles from a financing standpoint, as well as an operational perspective. Amobi cites improving trends in the company's automotive channel and its pre-announced fourth-quarter results.

The stock's achievement Wednesday has allayed much investor fear over the stock being delisted. Amobi says Sirius has dealt its cards well in buying time and avoiding a reverse stock split.

He also notes that Sirius' increasing volume, even before the stock went over a dollar, signaled that those on the sidelines were "coming back into the shares ... it's a good sign any time volumes go up in terms of demand and supply dynamics."

Sirius XM's rally is certainly a reason for investors in the stock to celebrate, but Amobi is still watching the company with a measured degree of caution, especially with regards to the company's retail channel. He says he still needs more data points on the company's retail channel -- a major channel for the company -- before drawing any conclusions.

"They really struggled with that one over the last year or more," Amobi said. "That means the auto channel had to continue to pick up the slack." How much longer it can do that remains to be seen, he said.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs