Sirius XM Holdings (SIRI) Down In Early Morning 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 Holdings ( SIRI) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Sirius XM Holdings 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 $175.0 million.
  • SIRI traded 187,754 shares today in the pre-market hours as of 8:00 AM.
  • SIRI is down 2.5% 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 51.4. Currently there are 5 analysts that rate Sirius XM Holdings a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Sirius XM Holdings has been 63.8 million shares per day over the past 30 days. Sirius XM has a market cap of $22.1 billion and is part of the services sector and media industry. The stock has a beta of 1.89 and a short float of 7.1% with 4.38 days to cover. Shares are up 3% year-to-date as of the close of trading on Friday.

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

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Sirius XM Holdings 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, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • SIRI's revenue growth has slightly outpaced the industry average of 3.5%. 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 -6.65%.
  • 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.
  • 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).
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

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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