Background: SiriusXM Radio provides satellite radio services in the U.S. and Canada. The company broadcasts approximately 135 channels, including music, sports, entertainment, comedy, talk, news, traffic and weather channels on subscription fee basis through two satellite radio systems. It also offers music genres, such as rock, pop and hip-hop, as well as dance, jazz, Latin and classical music, advertising on non-music channels and applications to allow consumers to access Internet services on mobile devices.
SiriusXM trades an average of 72.9 million shares per day with a marketcap of $11 billion.52-Week Range: $1.61 to $2.97 Book Value: $1.05 Price to Book: 2.8 SiriusXM is anticipated to give us a repeat performance of last year in this year's third-quarter earnings before the market opens on Oct. 30. The consensus estimate is currently 2 cents a share, the same as third-quarter last year. The lowest analyst estimate this report is 1 cent per share and the highest is 3 cents per share. Analysts as a whole like this company. Currently, SiriusXM has 11 buy recommendations out of 16 analysts covering the company, along with 4 holds, and 1 sell rating. Five out of 16 analysts now rate SiriusXM a strong buy up from four analysts a month ago. Analysts overall have called this one correctly. In the last 12 months, the shares have accelerated higher. The one year return is 56%. The average analyst current target price for Sirius XM is $3.10. SiriusXM is riding the bull like a Wyoming cowboy. In the last month, the stock has really moved higher with a 18.3% increase. The moving averages are moving higher, and shareholders are happy. Liberty Media almost has control of the company, and what that means for the average investor remains to be seen. For Mel Karmazin, who navigated Sirius away from the event horizon just a few years ago, it means it's time to exit. Mr. Karmazin steps down in February. While not a popular view among the faithful, I don't see a lot of upside potential beyond the $3 mark. Sirius is far from a short, but as I have written (correctly) many times, hedging with covered calls continues to make sense to me. The current proportion sold short based on the float is 7.8%, and I find this much interest by short sellers worth looking at in more depth. SIRI Revenue Quarterly data by YCharts
At the time of publication, the author held no positions in any of the stocks mentioned. Follow @RobertWeinstein This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.