Looking at this one-year chart of SIRI, above, we can see a number of rally failures at $4, while dips under $3.70 have been bought. However, the picture changed in recent days as SIRI has closed above, and stayed above, $4. Prices for SIRI are above the flat 50-day moving average and the On-Balance-Volume (OBV) line is now moving up with the price appreciation.
In this longer-term chart of SIRI, above, we can see the rally in SIRI from $3 and the strongly rising OBV line. Also, prices are above the rising 40-week (200-day) moving average. Resistance for SIRI is old and probably not meaningful, so we have targets for SIRI of $4.25, $4.50 and $4.75.
TheStreet Ratings team rates SIRIUS XM HOLDINGS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
We rate SIRIUS XM HOLDINGS INC (SIRI) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins, impressive record of earnings per share growth and compelling growth in net income. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- SIRI's revenue growth has slightly outpaced the industry average of 6.8%. Since the same quarter one year prior, revenues rose by 10.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- SIRIUS XM HOLDINGS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, SIRIUS XM HOLDINGS INC increased its bottom line by earning $0.09 versus $0.06 in the prior year. This year, the market expects an improvement in earnings ($0.10 versus $0.09).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Media industry average. The net income increased by 22.3% when compared to the same quarter one year prior, going from $136.17 million to $166.55 million.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Media industry and the overall market, SIRIUS XM HOLDINGS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The gross profit margin for SIRIUS XM HOLDINGS INC is rather high; currently it is at 62.31%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 14.23% is above that of the industry average.
- You can view the full analysis from the report here: SIRI