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What's Next for Sirius XM Stock?

Now that Sirius XM stock has cleared the $1 threshold, what do you think is on the horizon for Sirius XM?
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NEW YORK (TheStreet) -- Sirius XM (SIRI) - Get Sirius XM Holdings, Inc. Report has officially regained compliance with NASDAQ-listing standards after closing above $1 a share for ten straight business days.

On Tuesday, Sirius XM said that it was informed by the NASDAQ that it's in compliance with all NASDAQ-listing standards now and will remain listed there. As a result, a hearing before a NASDAQ-listing qualifications panel to review the company's compliance with the minimum bid-price rule, originally slated for April 29, has been canceled.

The positive news provides Sirius XM and its investors with plenty to cheer about shortly ahead of the company's first quarter release. On Tuesday, the company also announced plans to release first-quarter numbers on Tuesday, May 4.

The company has already preannounced some its first-quarter news. On April 14, Sirius XM said it added 171,441 net subscribers in the first quarter of 2010, compared with a year-earlier net subscriber decline of 404,422.

Sirius XM also concluded the first quarter with 18,944,199 subscribers, an increase of 344,765 over the year-ago quarter. "Our subscriber results represent a remarkably positive turn from the year-ago quarter, reflecting the broad appeal of our unrivaled programming, the benefits of a recovering auto industry and an improving economic environment for consumers," Sirius XM chief Mel Karmazin said in a written statement.

During its first quarter subscriber-growth update, Sirius XM also said that gross additions increased by 29% and deactivations decreased by 11% compared with the first quarter a year ago, and that self-pay churn improved to 2% from 2.2% a year earlier.

Also, the conversion rate from a trial subscription included in the sale of a vehicle to a self-pay subscription improved to 45.2%, up from 44.6%. "We also expect to report solid revenue growth and strong growth in pro forma adjusted income from operations for the first quarter of 2010," Karmazin added.

BGB Securities analyst Murray Arenson wrote in an e-mail Tuesday that "with the delisting risk out of the way -- and therefore no indication that the company would proceed with a reverse stock split --

we would expect to see additional support for the stock.


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Meanwhile, Barrington Research analyst James Goss noted that Sirius XM's growing presence in smart phone applications "never hurts." He added that in about one year and several months, Sirius XM will hit the three-year mark of the merger between Sirius and XM Radio, and could then revisit their pricing structure.

S&P analyst Tuna Amobi wrote that he maintains a hold opinion on Sirius XM shares and a 12-month price target of $1.50 for now. He'll be studying the company's forward-looking commentary after its upcoming first-quarter release on May 6, hoping to find it confirming positive trends such as improved consumer confidence and a continued, meaningful rebound in U.S. light vehicle sales.

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-- and, if you feel inspired to do so, leave a comment.

-- Reported by Andrea Tse in New York


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