One Factor Driving Sirius XM (SIRI) Stock Up Today

NEW YORK (TheStreet) -- Shares of Sirius XM  (SIRI) rose 1.25% to $3.65 in afternoon trading Wednesday after Zacks reiterated its "neutral" rating and $3.75 price target.

"Sirius XM reported mixed financial results for the second quarter of 2014, with its bottom line on par with the Zacks Consensus Estimate and the top line ahead of the same. Despite strong revenues, adjusted EBITDA, free cash flow and higher ARPU, Sirius XM is largely dependent on the future of the U.S. auto industry, which at present is poised for strong growth," the firm wrote.

"Therefore, even a minor fluctuation in auto sales may significantly affect the company's financials. To counter such overdependence, management has decided to foray into the telematics business. We believe that the acquisition of the connected vehicle services division of Agero will be a long-term positive for the company."

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

Sirius XM CEO Jim Meyer also discussed plans for tiered pricing at the Bank of America Merrill Lynch 2014 Media, Communications and Entertainment Conference on Tuesday.

Separately, 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, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."

If you liked this article you might like

Rebuilding Efforts From Hurricanes Harvey and Irma Make These 6 Stocks Must Buys

3 'Orphan Stocks' to Consider Adopting

Novartis AG, Sirius XM Radio, Coupa Software: 'Mad Money' Lightning Round

August's Inexplicable Selloffs Are Here: Cramer's 'Mad Money' Recap (8/17/17)