Sirius XM Holdings Inc. (SIRI): A Bull Case Theory

We came across a bullish thesis on Sirius XM Holdings Inc. (SIRI) on Twitter by TheGodF🅰therKnows. In this article, we will summarize the bulls’ thesis on SIRI. Sirius XM Holdings Inc. (SIRI)’s share was trading at $21.89 as of Jan 27th. SIRI’s trailing and forward P/E were 7.28 and 6.76 respectively according to Yahoo Finance.

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A person wearing headphones listening to an audio streaming service.

SiriusXM (SIRI) is poised for a rebound, driven by recent developments and strong fundamentals. Warren Buffett’s increased stake to over 34% signals confidence in the company’s future. SiriusXM boasts a solid $2.7 billion annual adjusted EBITDA and $1 billion in free cash flow, supporting its attractive dividend yield of 4.6%. The company also has a $1.7 billion stock buyback program, reflecting its commitment to shareholder value. With a cheap valuation of 7.7x P/E and 6.8x EV/EBITDA, SiriusXM presents significant upside potential. Management is focused on driving subscriber value through content, technology, and pricing, expanding advertising to attract new listeners, and improving organizational efficiency. Despite recent weakness, with the stock down from around $29 ten trading sessions ago, even a modest recovery to $27.50 would offer a 17.5% short-term return. This combination of strong financials, strategic focus, and a potential rebound makes SiriusXM an attractive investment opportunity.

Sirius XM Holdings Inc. (SIRI) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 49 hedge fund portfolios held SIRI at the end of the third quarter which was 33 in the previous quarter. While we acknowledge the risk and potential of SIRI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than SIRI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.