Sirius XM Holdings Inc.

Section 1: Company Overview and Fundamentals

1.1 Company Overview:

Sirius XM Holdings Inc. (NASDAQ: SIRI) is an audio entertainment company. 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. The Company operates in two segments: Sirius XM and Pandora and Off-platform.

Kalkine’s American Tech Report covers the Company Overview, Key positives & negatives, Investment summary, Key investment metrics, Top 10 shareholding, Business updates and insights into company recent financial results, Key Risks & Outlook, Price performance and technical summary, Target Price, and Recommendation on the stock.

Stock Performance:

• The stock has corrected by around19.34% in the last three months while correcting by 27.93% in past nine months.
• The stock is leaning towards the lower band of its 52-week range of USD 55.40 and 52-week low price of USD 20.47, with the current price near an important support zone of USD 20.00-USD 22.00, with expectations of support if these levels sustains.
• The price is currently below both its short-term (50-day) SMA and long-term (200-day) SMA, with the current RSI of 45.14.

1.2 The Key Positives, Negatives, and Investment summary

1.3 Top 10 shareholders:

The top 10 shareholders together form ~59.91% of the total shareholding, signifying concentrated shareholding. Berkshire Hathaway Inc., and The Vanguard Group, Inc. are the biggest shareholders, holding the maximum stake in the company at ~34.63% and ~6.80%, respectively.

1.4 Key Metrics

In Q3FY24, SIRI reported a gross margin of 46.1%, surpassing the industry median of 43.0%. Additionally, SIRI's EBITDA margin stood at 30.8%, significantly higher than the industry median of 9.2%, while its operating margin of 22.4% was notably above the industry median of 1.5%.

Section 2: Business Updates and Corporate Business Highlights

2.1 Recent Updates:

The below picture gives an overview of the recent updates:

2.2 Insights of Q3FY24:

Section 3: Key Risks & Outlook

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

Stock Performance:

• The stock has corrected by around19.34% in the last three months while correcting by 27.93% in past nine months.
• The stock is leaning towards the lower band of its 52-week range of USD 55.40 and 52-week low price of USD 20.47, with the current price near an important support zone of USD 20.00-USD 22.00, with expectations of support if these levels sustains.
• The price is currently below both its short-term (50-day) SMA and long-term (200-day) SMA, with the current RSI of 45.14.

4.2 Fundamental Valuation

Valuation Methodology: Price/Earnings Multiple Based Relative Valuation

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is January 17, 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: The report publishing date is as per the Pacific Time Zone.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

 Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.