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Buffett's latest move!
Broadcasting company Sirius XM (SIRI. US) recently submitted documents to regulatory agencies showing that Buffett's investment company Berkshire Hathaway has continuously purchased shares of the company, with a total value of $86.73 million.
Continuously buying a broadcasting company
The regulatory document shows that Berkshire Hathaway purchased 869800 shares of Sirius XM stock last Wednesday; On Thursday, two independent transactions were made to purchase 917800 shares and 517200 shares of the company's stock, respectively; Buy another 1.2593 million shares of the company's stock on Friday. Roughly calculated, Berkshire Hathaway bought approximately $86.73 million worth of Sirius XM stock within three days, increasing its total holdings in the company to 108.72 million shares.
According to the reporter's inquiry, as early as November 2023, Berkshire Hathaway had disclosed its stake in Sirius XM. This broadcasting company is expected to announce its first performance since then on October 31st.
In contrast, Berkshire Hathaway has been aggressively selling its stake in Bank of America (BAC. US), the second largest bank in the United States, since mid July and has recently reduced its stake to below 10%.
Buffett's massive purchase of a media company while continuously reducing his total stock holdings has attracted attention. In fact, the company is not favored by many analysts. According to a report released by investment firm Benchmark on October 8th, while maintaining the rating of Sirius XM, the target price has been adjusted from $65.00 to $43.00.
Morgan Stanley, on the other hand, has given a write down rating with a price target of $23.00. It is expected that the company's revenue decline and adjusted EBITDA will have a negative impact on the company's stock price.
But there are also institutions that are optimistic about the company. Pivot Research maintains a buy rating on Sirius XM, emphasizing the company's strong free cash flow capabilities and growth potential.
What does SiriusXM do?
Sirius XM is a radio entertainment company that broadcasts music, sports, entertainment, comedy, interviews, news, traffic, and weather channels through an exclusive satellite broadcasting system in the United States. This radio station broadcasts through a satellite broadcasting system on a paid basis. Users can also hear certain music and other channels on the Internet, including mobile device applications.
In 2008, the satellite broadcasting company Sirius merged with the satellite broadcasting holding company XM to form Sirius XM. Subsequently, in September 2023, after completing the transaction with Liberty Media, Sirius XM became an independent publicly traded company with a simplified capital structure. In addition, Sirius XM has also acquired the former music streaming giant Pandora.
SiriusXM stock price trend since the beginning of the year
According to the official website, Sirius XM's revenue for the 2023 fiscal year is as high as $8.95 billion, with pre tax profit and net profit of $2.79 billion and $1.26 billion, respectively. The number of listeners has reached 150 million, and the subscription count is about 34 million. From the perspective of quarterly revenue and net profit trends, Sirius XM belongs to a company with stable revenue.
Sirius XM quarterly revenue trend
Sirius XM quarterly net profit trend
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