NEW YORK (TheStreet) -- Not long ago, Sirius XM (SIRI) - Get Report was seemingly on the brink of bankruptcy and in the depths of despair; now analysts are praising the company's improving fundamentals and investors are celebrating its re-compliance with Nasdaq listing standards, after the company finished Tuesday's regular trading session above $1 for the tenth straight day.
Now, some analysts and investors are even -- perish the thought -- shifting their focus to the company's ability to attract institutional investors.
Some institutions, of course, won't consider stocks under $5.
Still, when coupled with the recovering auto sector; the company's solid, first quarter preliminary subscriber figures; progress on paying down its debt; improving free cash flow and other positive fundamental news, Sirius XM is certainly generating significant media attention these days -- and perhaps even large investor attention.
"Growth-style institutional investors had forgotten about this name," Janco Partners analyst Martin Pyykkonen said. Still, he speculates that, institutionally, "I think you're getting more of that financial investor focus back."
Pyykkonen notes that over the last month, Sirius XM has been generating increasing interest from mutual funds, hedge funds and growth-oriented investors, who view the company's management and fundamentals positively and are aware of the stock's gradual movement beyond the $1 resistance level that it had been below -- save for a brief spell this past February -- since September of 2008. Pyykkonen declares Sirius XM to be a strong trading stock with nice liquidity that the Nasdaq wouldn't have wanted to see delisted.
The analyst has a buy rating for Sirius XM and a $1.30 price target, with the potential for upside revision.
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Barrington Research analyst James Goss believes that the recent developments at Sirius XM indeed are bullish indicators, but it's still difficult to say whether "this alone will tilt the balance" in regards to larger institutions who may have had a bias with regards to the company's lower per share stock price. He will continue to watch the company on its delivery of potential and fundamental results.
Miller Tabak analyst David Joyce said he has a $1.25 price target for Sirius XM, but a neutral opinion on the company, due to its plan to not seek a reverse split right now.
"If it had a reverse split, institutions would like the free cash flow better," Joyce wrote in an email.
-- Reported by Andrea Tse in New York
>>Sirius XM: The Final Countdown
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