It’s aggressively seeking in-home and on-the-go listening thanks to a recently introduced advertising campaign that includes, interestingly, broadcast radio spots.
SiriusXM is on the hunt for more people willing to pay for its own music channels, and a wide array of specialty programming that ranges from Howard Stern to live sports action, Canadian channels and the BBC World Service.
To Simply Wall Street, that could be a sign that investing in SIRI, priced at $6.27 ahead of the Sept. 12 opening bell on Wall Street, may be worthy of a watchlist addition.
With Stern trending on the 21st anniversary of the 9/11 terrorist attacks, which saw The Howard Stern Show — then airing live on WXRK-FM in New York — report the day’s tragic events live as they unfolded with an abrupt shift of a Stern encounter with Pamela Anderson, the veteran “shock jock” is as relevant as ever.
That’s likely just one reason why SIRI is perhaps attractive to investors. The other is the start of the National Football League season, the upcoming Major League Baseball playoffs, and the start of both the National Basketball Association and National Hockey League 2022-2023 seasons. Each of the leagues offer full play-by-play on SiriusXM.
But, what of SiriusXM’s profitability?
The Simply Wall Street blog notes that SiriusXM’s profit-generating status is an attraction point. But, it stops short in saying the company “presents the best investment opportunity around.”
The blog continues, “We can see that in the last three years Sirius XM Holdings grew its EPS by 13% per year. That’s a pretty good rate, if the company can sustain it.”
While Sirius XM Holdings achieved similar Earnings Before Interest and Tax (EBIT) margins to last year, revenue grew by a solid 5.8% to $8.9 billion. “That’s a real positive,” Simply Wall St. shares.
What about “insiders” and their holding a large percentage of shares? “We would not expect to see insiders owning a large percentage of a $24 billion company like Sirius XM Holdings,” it notes. “But thanks to their investment in the company, it’s pleasing to see that there are still incentives to align their actions with the shareholders. Holding $68 million worth of stock in the company is no laughing matter and insiders will be committed in delivering the best outcomes for shareholders. This would indicate that the goals of shareholders and management are one and the same.”
Should You Add Sirius XM Holdings To Your Watchlist?
With profits growing and “significant insider ownership,” Simply Wall St. declares, “That combination is very appealing. So yes, we do think the stock is worth keeping an eye on.”
What about risks? “Every company has them,” the blog says, noting three risks: debt is not well covered by cash flow; negative shareholder equity; and significant insider selling over the last three months.
