The latest results in Institutional ownership have just been announced. Although the findings are based on the end of Q2, the results still offer a lot of useful information to investors about each company. Sirius XM (NASDAQ:SIRI) has had more funds decrease their holdings than vice-versa this time. Here is the list of the top fifteen fund owners of Sirius XM and their activity at the end of the last quarter. The biggest drop came from FMR, as it sold off over 63 million shares. Vanguard remained the top owner of Sirius, but it also sold 23% of its position:
Sirius XM Institutional Ownership
|Owner Name||Date||Shares||Chg Shares||Chg%||Value 1,000s|
|VANGUARD GROUP INC||06/30||107,245,466||(32,515,348)||(23.27)||403,243|
|WINSLOW CAPITAL MANAGEMENT, LLC||06/30||98,922,977||(17,105,305)||(14.74)||371,950|
|BARCLAYS GLOBAL INVESTORS UK HOLDINGS LTD||06/30||78,530,615||(7,735,154)||(8.97)||295,275|
|COOPERMAN LEON G||06/30||71,893,003||(58,200)||(0.08)||270,318|
|WELLINGTON MANAGEMENT CO LLP||06/30||71,211,196||(16,176,572)||(18.51)||267,754|
|BLACKROCK ADVISORS LLC||06/30||58,357,058||(103,463)||(0.18)||219,423|
|STATE STREET CORP||06/30||55,105,456||(6,704,126)||(10.85)||207,197|
|WELLS FARGO & COMPANY/MN||06/30||48,948,186||47,231,693||2,751.64||184,045|
|BLUE RIDGE CAPITAL, L.L.C.||06/30||43,300,000||0||0.00||162,808|
|COATUE MANAGEMENT LLC||06/30||42,914,664||252,451||.59||161,359|
|CAPITAL GUARDIAN TRUST CO||06/30||37,311,077||20,654,377||124||140,290|
|CRITERION CAPITAL MANAGEMENT LLC||06/30||32,129,882||2,628,000||8.91||120,808|
|SLATE PATH CAPITAL LP||06/30||31,530,000||280,000||.90||118,553|
What caused this sudden drop? It is very possible that some of the institutions took profits by selling during "Sell in May and Walk Away." The price has jumped over a dollar a share in the last year. To some casual observers, Sirius always seems "stuck" at the same price for long periods of time. But most of the Sirius Bulls that have owned shares for a long time know patience is the key with this company:
Since the end of 2008, the shares have steadily advanced upward. In spite of some investors feeling that the shares are flat, they are clearly not. But even some of the strongest Perma Bulls have been known to take some profits from this cash cow.
And the future still looks rosy for Sirius. Earnings for Q3 are expected to be up 100% over last year. While revenue is predicted to jump 12% to almost $1 billion for the quarter. And it may top $3.8B for 2013.
|Earnings Est||Current Qtr. |
|Next Qtr. |
|Current Year |
|Next Year |
|No. of Analysts||15.00||14.00||14.00||14.00|
|Year Ago EPS||0.01||0.02||0.51||0.09|
|Revenue Est||Current Qtr. |
|Next Qtr. |
|Current Year |
|Next Year |
|No. of Analysts||13||12||16||16|
|Year Ago Sales||867.36M||892.42M||3.40B||3.80B|
|Sales Growth (year/est)||11.70%||10.50%||11.60%||9.80%|
New car sales have been up for the last year, and now on Thursday the company announced that it has bought the telematics unit of Agero, Inc. for $530 million in cash. Agero is a leader in telematics which will open more doors for Sirius in the auto industry:
Sirius XM announced today that it has entered into a definitive agreement to acquire the connected vehicle services business of Agero, Inc. for $530 million in cash. The connected vehicle unit of Agero is the leading provider of innovative telematics services, offering safety, security and convenience services for drivers and end-to-end, turnkey solutions for automakers. Following the acquisition, SiriusXM will provide connected vehicle services to more automotive manufacturers -- including Acura, BMW, Honda, Hyundai, Infiniti, Lexus, Nissan and Toyota than any other telematics provider.
I think that the funds that sold Sirius got it wrong this time. And if they did not buy back some of the shares that they sold, they missed out on some big gains over the summer. Walk Away 2013 fizzled out this time. That doesn't mean that there will not be a correction. It is looming over us right now. Sirius dipped on Thursday along with the rest of the market which fell 225 points. But the down days just offer more buying opportunities. Expect a soft market until the end of October.
Disclosure: I am long SIRI. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.