Sirius XM Radio (SIRI) Down In Pre-Market Trading

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Sirius XM Radio ( SIRI) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Sirius XM Radio as such a stock due to the following factors:

  • SIRI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $160.1 million.
  • SIRI traded 62,000 shares today in the pre-market hours as of 8:00 AM.
  • SIRI is down 2% today from Friday's close.

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More details on SIRI:

Sirius XM Holdings Inc. provides satellite radio services in the United States and Canada. SIRI has a PE ratio of 52.7. Currently there are 6 analysts that rate Sirius XM Radio a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Sirius XM Radio has been 46.5 million shares per day over the past 30 days. Sirius XM Radio has a market cap of $22.6 billion and is part of the services sector and media industry. The stock has a beta of 1.89 and a short float of 8.7% with 6.11 days to cover. Shares are up 27.7% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Sirius XM Radio as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, expanding profit margins, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 3.0%. Since the same quarter one year prior, revenues rose by 10.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • Net operating cash flow has increased to $302.24 million or 37.49% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 14.02%.
  • The gross profit margin for SIRIUS XM HOLDINGS INC is rather high; currently it is at 65.01%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 6.54% trails the industry average.
  • Compared to its closing price of one year ago, SIRI's share price has jumped by 33.21%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • SIRIUS XM HOLDINGS INC reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, SIRIUS XM HOLDINGS INC increased its bottom line by earning $0.53 versus $0.07 in the prior year. For the next year, the market is expecting a contraction of 86.8% in earnings ($0.07 versus $0.53).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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