Sirius XM (NASDAQ:SIRI) Shares Gap Down Following Weak Earnings

Sirius XM Holdings Inc. (NASDAQ:SIRI) shares gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $32.59, but opened at $30.00. Sirius XM shares last traded at $31.2250, with a volume of 1,412,538 shares trading hands.

The company reported $0.70 earnings per share for the quarter, missing analysts’ consensus estimates of $0.78 by ($0.08). Sirius XM had a return on equity of 9.19% and a net margin of 9.86%.The business had revenue of $2.16 billion during the quarter, compared to analyst estimates of $2.14 billion. During the same quarter in the prior year, the company earned $0.57 EPS. The company’s revenue was up 1.0% on a year-over-year basis.

Sirius XM Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 26th. Stockholders of record on Monday, August 10th will be paid a $0.27 dividend. The ex-dividend date of this dividend is Monday, August 10th. This represents a $1.08 annualized dividend and a dividend yield of 3.5%. Sirius XM’s dividend payout ratio is 45.57%.

Key Stories Impacting Sirius XM

Here are the key news stories impacting Sirius XM this week:

• Positive Sentiment: Wells Fargo upgraded Sirius XM, while Rosenblatt reaffirmed its Buy rating and maintained a $45 price target—about 38% above the referenced share price. The recommendations provide additional support for the stock’s bullish momentum. Sirius XM upgraded at Wells Fargo Rosenblatt reiterates Buy rating
• Positive Sentiment: The company raised its fiscal 2026 outlook, signaling improved confidence in its earnings trajectory. SiriusXM also declared a quarterly dividend of $0.27 per share, payable August 26, preserving its appeal to income-focused investors. Sirius XM raises fiscal 2026 outlook Sirius XM dividend update
• Neutral Sentiment: Second-quarter revenue was $2.16 billion, slightly above the $2.14 billion consensus estimate. Net margin was 9.86% and return on equity was 9.19%, indicating continued profitability, although the quarter’s overall results were mixed. SiriusXM second-quarter results
• Negative Sentiment: Adjusted earnings of $0.70 per share missed analysts’ $0.78 consensus by $0.08. In addition, fiscal 2026 revenue guidance of approximately $8.5 billion is below the $8.6 billion analyst estimate, limiting the positive impact of the raised outlook.
• Negative Sentiment: Chief Operating Officer Wayne Thorsen is leaving amid a restructuring. The management transition may create execution uncertainty as Sirius XM works to streamline operations. Sirius XM COO departure

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on the company. Rosenblatt Securities reiterated a “buy” rating and set a $45.00 price target on shares of Sirius XM in a report on Tuesday. Morgan Stanley upped their target price on shares of Sirius XM from $24.00 to $28.00 and gave the stock an “underweight” rating in a research note on Tuesday, July 21st. Weiss Ratings upgraded shares of Sirius XM from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, July 9th. JPMorgan Chase & Co. raised their price target on shares of Sirius XM from $24.00 to $26.00 and gave the company a “neutral” rating in a research report on Friday, May 1st. Finally, UBS Group set a $30.00 price target on shares of Sirius XM in a report on Wednesday. Four investment analysts have rated the stock with a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of “Hold” and an average target price of $29.64.

Insider Activity

In other news, insider Scott Andrew Greenstein sold 20,744 shares of the firm’s stock in a transaction that occurred on Wednesday, May 27th. The shares were sold at an average price of $29.83, for a total transaction of $618,793.52. Following the completion of the sale, the insider owned 20,163 shares in the company, valued at $601,462.29. This trade represents a 50.71% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 3.27% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Sirius XM

Institutional investors and hedge funds have recently bought and sold shares of the company. Dimensional Fund Advisors LP increased its position in Sirius XM by 262.1% in the first quarter. Dimensional Fund Advisors LP now owns 6,301,181 shares of the company’s stock worth $145,426,000 after buying an additional 4,560,821 shares during the last quarter. AQR Capital Management LLC lifted its position in shares of Sirius XM by 165.2% during the 2nd quarter. AQR Capital Management LLC now owns 5,191,440 shares of the company’s stock valued at $117,327,000 after buying an additional 3,233,922 shares during the last quarter. State Street Corp lifted its position in shares of Sirius XM by 0.7% during the 4th quarter. State Street Corp now owns 3,487,415 shares of the company’s stock valued at $69,731,000 after buying an additional 25,906 shares during the last quarter. Check Capital Management Inc. CA grew its stake in shares of Sirius XM by 2.0% during the 1st quarter. Check Capital Management Inc. CA now owns 2,942,595 shares of the company’s stock worth $67,915,000 after acquiring an additional 59,095 shares during the period. Finally, Norges Bank bought a new position in shares of Sirius XM during the 4th quarter worth $57,124,000. 10.69% of the stock is owned by institutional investors.

Sirius XM Trading Down 4.0%

The firm has a fifty day moving average of $29.30 and a two-hundred day moving average of $25.23. The company has a market cap of $10.53 billion, a PE ratio of 13.24, a price-to-earnings-growth ratio of 0.68 and a beta of 0.95. The company has a current ratio of 0.44, a quick ratio of 0.44 and a debt-to-equity ratio of 0.83.

About Sirius XM

Sirius XM Holdings Inc is a leading audio entertainment company specializing in subscription-based satellite and streaming radio services. Formed in 2008 through the merger of Sirius Satellite Radio and XM Satellite Radio, the company delivers a broad range of programming across music, sports, news, talk and comedy channels. Sirius XM’s offerings include exclusive live sports play-by-play, artist-curated music channels, news coverage from major networks and original talk and entertainment series.

Headquartered in New York City, Sirius XM serves listeners throughout the United States and Canada, reaching tens of millions of subscribers.