NEW YORK (
trading volume has shot above its three-month average in the run-up to the company's fourth quarter earnings call.
"I think there's a realization that the stock will stay above a dollar," S&P equity analyst Tuna Amobi says.
This is of course a major volume driver, luring in investors who want to snap up
stock while it's still hot. It's no surprise that investors are eagerly awaiting the earnings report, slated for the 25th, given the recent positive news surrounding the company.
More than 56 million Sirius XM shares are trading hands Monday afternoon, above the three-month average of more than 46 million shares. Meanwhile the stock has risen 4% to $1.10.
Sell Sirius!: Against the Grain
Although Sirius XM has pre-announced fourth-quarter results, investors will still be keeping their eyes on a number of metrics and other factors Thursday.
Those factors include the company's original equipment manufacturer (OEM) conversion rates, churn, developments in the used-car market, auto versus retail side of the business, new iPhone and iPod SkyDock application, as well as subscriber acquisition costs (SAC) -- or how much it costs to acquire new subscribers -- and average revenue per user (ARPU).
"Investors will want more color on those factors," Amobi says.
Sirius XM faced some challenges in its ARPU until two quarters ago, but help came when the company enacted a price increase, according to Amobi.
Although executives had been loathe to enact a reverse stock split when Sirius XM was still trading under a dollar, such a move would probably be viewed less negatively today.
"The more days it trades above a dollar, the further we get away from a delisting risk," James Goss of Barrington Research says. At the current price, "a reverse stock split would be viewed less as a situation done under duress."
-- Reported by Andrea Tse in New York
>>Sirius XM: The Beginning of the End?
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