It has a market capitalization of $27 billion. However, its stock price has been stagnant since 2002. With a dividend yield of 0.91%, the stock is still far from its all-time high. Nonetheless, it is a growing business.
Sirius XM has a long history of profitable quarters. In addition, it has a scalable business model that should continue to help it grow. This includes its acquisition of Simplecast, a podcast management platform.
Although Sirius XM stock is currently trading at 5.96, the company"s value is still much higher than its current price. Investors need to understand that the market price of a company can be influenced by many different factors. One such factor is its balance sheet.
The company"s balance sheet includes information about assets, liabilities, and the amount of borrowed capital. These are used to evaluate the company"s equity, return on equity, and leverage. The Piotroski F-Score is a popular financial indicator. The score is a nine-point scale that determines a company"s profitability, liquidity, and operating efficiency. If a company scores a low, it means it is not a good value investment.
If you"re looking for a long-term buy, you might consider holding on to Sirius XM shares if they can bounce back from trendline support. However, if the uptrend breaks, you might want to sell.
For now, the short-term chart shows that the stock is bouncing back from a weak January. This looks a little ugly, but in the context of a two-year run, it"s not as bad. Whether or not it can sustain the momentum is a decision for the company"s shareholders.
During the fourth quarter, the stock gained 18%, which pushed it to a forward dividend yield of 0.91%. Moreover, Sirius XM has been paying a dividend since November 2016. A dividend increase could help the stock rebound.
Lastly, a large share repurchase by Sirius XM has fueled its upward movement. In the last four years, the stock has gone up 95%. Moreover, its revenues have risen 75%. As a result, the P/E multiple has increased.
Overall, Sirius XM is a sound buy. It has a competitive advantage over Pandora, a rival that is rumored to be on the verge of a buyout. Despite this, it is one of the market"s most shorted stocks.
Since the beginning of 2018, the stock has been in a well-defined uptrend. Several tests of trendline support have led to a bounce. This could be an excellent buying opportunity this fall.
However, if Sirius XM violates its long-term support, it could be a sign that the uptrend is over. While the stock is still a strong performer, it has been out of range for much of the year. That means it"s not likely to break through all-time highs in the near future.