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Content is the Reason to Own Radio

David Becker
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Content is king even in the radio space, and the largest and broadest based is Sirius XM. Sirius XM Holding Inc (NASDAQ:SIRI) provides satellite radio services in the United States and Canada. The company creates and broadcasts commercial-free music; sports talk and live events; comedy; news; exclusive talk and entertainment.

The company announced this week that they are extending their relationship through the end of 2018. Nissan North America will move to increase the penetration of its cars that roll into showrooms with factory-installed satellite receivers.

The 52-week range of SIRI is $ 2.95 – $4.18, and the stock hit a fresh 52-week high in October. Earnings were flat in the latest quarter and the 3-year growth rate of earnings was a positive 14%. Sales were up 11% quarter over quarter and the three-year growth rate of sales was up 10%. The company has a very solid profit margin of 13.9%.

Recent insider buying makes the stock look attractive. Patrick Donnely an executive vice president and general counsel of the company purchased two blocks of shares on January 10, 2014. The first was for 3.6 million shares for a total value of 13.5 million dollar and the second for 270K for a total value of 1 million dollars. There were no insider sales of the company stock in January.

The technical picture for the stock shows that price action is declining toward support levels near the recent lows in December of 2013. Momentum is negative but the trajectory of the MACD is flattening. The accumulation distribution line is low meaning that the decline is not accompanied with increasing volume. The relative strength index (RSI) is printing near 40 which is on the lower end of the neutral range.

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