此消息提振了Sirius XM股价上涨。13日盘后交易，公司股价一度飙升近13%，于周五收于24.93美元/股。Sirius XM is a North American radio entertainment company that provides live, curated, and other services through satellite broadcasting, offering music, sports, drama, talk shows, news, and other content, mainly maintaining stable profitability through in-car scenarios. Last week, Berkshire Hathaway increased its shareholding in Sirius XM by approximately $86.73 million, now becoming the latter's largest shareholder.
Berkshire Hathaway's significant investment in Sirius XM stocks, what signal does it send?
According to the latest regulatory filings, from October 16 to 18, Buffett's Berkshire Hathaway increased its holdings of Sirius XM stocks by about $86.73 million, bringing its total holdings to 0.10872 billion shares.
This news boosted the price of Sirius XM's stock. After-hours trading on the 13th saw the company's stock price soar nearly 13%, closing at $24.93 per share on Friday.
In fact, Berkshire Hathaway has added to its Sirius XM holdings multiple times this year, increasing its holdings by over $0.76 billion in March and about $0.1 billion in April.
However, due to resistance in subscriber growth and stagnant revenue growth, Sirius XM's stock price has fallen by over 54% since the beginning of this year.
Currently, Berkshire is the largest shareholder of sirius xm, holding a 32% stake.
Who is Sirius XM?
According to media compilation information, Sirius XM is a North American radio entertainment company that provides services such as live broadcasting and programming through satellite broadcasting, offering content such as music, sports, drama, talk shows, news, mainly maintaining stable profitability through in-car scenarios. It was formed by the merger of Sirius Satellite Radio and XM Satellite Radio in 2008.
In 2023, billionaire John Malone's Liberty Media became a major shareholder of sirius xm, holding 83% of the shares, some of which are held through the company Liberty SiriusXM Group (LSXM) as tracking stock.
In September last year, John Malone chose to split the LSXM business and merge it with Sirius XM, establishing a new public company to continue operating under the name and brand of Sirius XM. The new company will reissue a single series of common stock, with the stock code being "SIRI".
After the split, LSXM shares were converted to sirius xm shares at a ratio of 1:0.8375, which resulted in Berkshire, originally one of Liberty Media shareholders, becoming the largest shareholder of sirius xm.
Why did Berkshire make a large shareholding increase?
According to media sources citing market insiders, Berkshire's shareholding in Sirius XM is managed by Ted Weschler. Weschler joined Berkshire in 2012, he is one of Buffett's two designated successors, and he helps Buffett manage assets.
Some analysts pointed out that Berkshire Hathaway has increased its holdings of Sirius XM several times, which may reflect the company's strategic goal of increasing its media and technology asset portfolio.
Currently, Sirius XM's valuation is attractive, with a PE ratio of 8.21 times, which may suggest that investors like Buffett believe it has underlying value.
Previously, Sirius XM Chairman Greg Maffei also mentioned that Buffett really likes this platform and listens to the Siriusly Sinatra channel while driving his Cadillac, which broadcasts classic American songs.
Last week, JPMorgan analyst Sebastiano Petti downgraded Sirius XM to a 'shareholding' rating with a target price of $20. Petti stated in a client report:
"Lower EBITDA growth prospects, higher capital expenditures, and the suspension of share buybacks will continue to impact Sirius XM's sentiment."
