Stock Story -
What Happened?
Shares of satellite radio and media company Sirius XM (NASDAQ:SIRI) jumped 7.6% in the morning session after a regulatory filing revealed that Warren Buffett's Berkshire Hathaway (NYSE:BRKa) added to its position in the company (Sirius XM). Berkshire Hathaway bought 3.6 million shares (roughly $87 million) in the previous week. Berkshire Hathaway's total position is estimated to be around 108.7 million shares of Sirius XM or a 32% interest. Given the legendary investor's reputation for identifying quality opportunities in the stock market, the market is likely to read the information positively for the company's prospects in the near term.Is now the time to buy Sirius XM? Find out by reading the original article on StockStory, it’s free.
What The Market Is Telling Us
Sirius XM’s shares are extremely volatile and have had 30 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.The biggest move we wrote about over the last year was 6 months ago when the stock dropped 6% on the news that the company reported first quarter results: Its core subscribers churned and its full-year revenue guidance fell short of Wall Street's estimate. On the other hand, Sirius XM slightly topped analysts' revenue expectations during the quarter, thanks to better-than-expected advertising revenue. Its full-year EBITDA and free cash flow guidance were in line. Overall, it was a mixed quarter for Sirius XM.
Sirius XM is down 50.6% since the beginning of the year, and at $27.11 per share, it is trading 52.4% below its 52-week high of $56.90 from December 2023. Investors who bought $1,000 worth of Sirius XM’s shares 5 years ago would now be looking at an investment worth $428.20.