NEW YORK (TheStreet) -- Sirius XM (SIRI) - Get Sirius XM Holdings, Inc. Report stock jumped as much as 4.1% to 99 cents a share during midday trading Thursday despite a relatively quiet news day for the company.
S&P analyst Tuna Amobi thinks that its upward momentum may be related to stronger-than-expected March sales for the auto industry.
"This suggests another strong quarter for automotive channel unit sales for Sirius," Amobi said.
At midday Thursday, Sirius XM stock edged closer to reaching the Nasdaq listing requirement mandating that stocks maintain a minimum bid price of $1. A stock that falls below these standards, but then manages to close above a dollar for 10 consecutive business days regains compliance with the NASDAQ.
In February, Sirius XM stock, which had been trading below a dollar for some time, broke through this $1 threshold and managed to stay above it for several days in a row; though the stock eventually retreated before those 10 straight business days had passed by. On March 26, Sirius said that the NASDAQ has scheduled a hearing for April 29, at which Sirius XM would be given the opportunity to ask for continued listing on the NASDAQ, pending its re-compliance with NASDAQ's $1 a share rule.
Sirius XM's CEO Mel Karmazin sounds confident about the company's ability to stay listed.
"SIRIUS XM is one of the most liquid securities on The NASDAQ Global Select Market; we have a large investor base consisting of both individual and prominent institutional stockholders; and our equity capitalization is greater than approximately 92% of the companies listed on The NASDAQ Global Select Market. We are committed to remaining listed on The NASDAQ Global Select Market," Karmazin said in a statement.
Sirius stock is trading up 2.2% at 97 cents Thursday afternoon.
-- Written by Andrea Tse in New York
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