Sirius XM Shares Down 9% YTD, Facing Long-Term Debt Risks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: Fool
- Poor Market Performance: As of Friday, Sirius XM shares are down approximately 9% year-to-date and have plummeted 67% over the past five years, indicating ongoing market pressures that could undermine investor confidence.
- Stable Revenue Source: Despite challenges, Sirius XM generated $1.6 billion in subscription revenue in Q3, accounting for 75% of total sales, suggesting that its business model possesses a degree of predictability and stability.
- Worrisome Financial Condition: As of September 30, Sirius XM carried over $10 billion in long-term debt while its market cap stands at only $7 billion, indicating a high debt level that may pose risks to the company's financial health.
- Increased Competitive Pressure: Although there are no direct competitors in the satellite radio market, Sirius XM faces intense competition from streaming services like Spotify and Apple Music, which may lead to a shrinking self-pay subscriber base and declining revenue.
SIRI
$20.62+Infinity%1D
Analyst Views on SIRI
Wall Street analysts forecast SIRI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SIRI is 22.75 USD with a low forecast of 18.00 USD and a high forecast of 30.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
2 Buy
2 Hold
4 Sell
Hold
Current: 20.670
Low
18.00
Averages
22.75
High
30.00
Current: 20.670
Low
18.00
Averages
22.75
High
30.00
About SIRI
Sirius XM Holdings Inc. is an audio entertainment company in North America. The Company has a portfolio of audio businesses, including its flagship subscription entertainment service SiriusXM; the ad-supported and premium music streaming services of Pandora; an expansive podcast network, and a suite of business and advertising solutions. Its segments include Sirius XM and Pandora and Off-platform. The Sirius XM segment features music, sports, entertainment, comedy, talk, news, traffic and news channels and other content, as well as podcasts and infotainment services, in the United States on a subscription fee basis. Sirius XM's packages include live, curated, and certain exclusive and on-demand programming. The Pandora and Off-platform segment operates a music, comedy, and podcast streaming discovery platform, offering a personalized experience for each listener wherever and whenever they want to listen, whether through mobile devices, vehicle speakers or connected devices.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
