Daily Stock Analysis: Sirius XM Holdings (SIRI)

Sirius XM Holdings Inc., known by the ticker symbol SIRI, is a Large cap broadcasting firm in the Communication Services business sector. This is my first report on SIRI for my Viital stock portfolio and it was selected as the twenty-first pick for my Vista portfolio.

SiriusXM Holdings is now composed of two businesses: SiriusXM and Pandora. 

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SiriusXM transmits music, talk shows, sports, and news via its two satellite radio networks, primarily to consumers in vehicles who pay a subscription fee. The firm’s radios come preinstalled on a wide range of light vehicles in the U.S. and Canada. 

The firm acquired Pandora Media in February 2019 via an all-stock transaction. Pandora is a streaming music platform that offers an ad-supported radio option and a paid on-demand service. 

Liberty Media owns 68% of SiriusXM, traded through its Liberty SiriusXM Group tracking stock.

The company was incorporated in 2013 and is headquartered in New York, New York. Sirius XM Holdings Inc. is a subsidiary of Liberty Media Corporation.

Three key data points gauge dividend equities or funds like Sirius XM Holdings Inc. (SIRI):

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money. 

SIRI Price

Sirius XM Holdings' price per share was $6.20 as of yesterday's market close. One year ago its price was $5.73. So, SIRI's share price increased by just over 8.2% in the past year.

If SIRI's stock trades in the range of $5 to $8.00 this next year, its recent $6.20 price will likely rise by $1.30 to reach $7.50 by October 21, 2022. My estimate is in line with the median of one-year target estimates by 15 analysts who track the stock for brokers.  

SIRI Dividends

Sirius XM Holdings's most recent Q dividend of  $0.0146 was paid out on August 30, to shareholders. That equates to an annual payout of $0.06  and yields 0.94% based on yesterday's $6.21 closing price. SIRI has paid regular variable quarterly dividends since December 2012. That's 9 years. 

SIRI Returns

Adding the $0.06 annual estimated SIRI forward-looking dividend to my $1.30 price upside estimate shows a $1.36 potential gross gain, per share, to be reduced by any costs to trade SIRI shares.  

At yesterday's $6.20 price per share, a little under $1000 would buy 161 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.06 per share.

Subtract that maybe $0.06  brokerage cost from my estimated $1.36 gross gain per share results in a net gain of $1.30 X 161 shares = $209.30 for a 20.93% net gain on a $998.20 investment.

So it is that Sirius XM Holdings Inc. (SIRI) shows a possible 20.93% net gain including a 0.94% forward estimated dividend yield. 

Over the next year at this time, a $1000 investment in Sirius XM Holdings Inc. (SIRI) could generate $9.40 in cash dividends alone. And a single share bought at yesterday's closing price was $6.20! Thus, SIRI's share price is $3.20 less than the dividend income from $1000.00 invested. So, according to my dogcatcher ideal, now is the time to pickup SIRI shares. The estimated next year's dividend from $1k invested is nearly $3.30 greater than the single share price. Consider yourself alerted. It's a sign!  

All of the estimates above are speculation based on the past history of Sirius XM Holdings Inc. (SIRI). Only time and money invested in this stock will determine its market value.

Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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