Sirius XM News: Major Funds Take Profits

| About: Sirius XM (SIRI)

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
INVESCO LTD. 06/30 80,539,420 11,769,280 17.11 302,828
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
FMR LLC 03/31 63,958,618 (63,065,059) (49.65) 240,484
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:

Chart forSIRIUS XM Radio Inc.

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.

Chart forSIRIUS XM Radio Inc.

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.
Sept 13
Next Qtr.
Dec 13
Current Year
Dec 13
Next Year
Dec 14
Avg. Estimate 0.02 0.03 0.09 0.12
No. of Analysts 15.00 14.00 14.00 14.00
Low Estimate 0.02 0.02 0.07 0.08
High Estimate 0.03 0.03 0.13 0.18
Year Ago EPS 0.01 0.02 0.51 0.09
Revenue Est Current Qtr.
Sept 13
Next Qtr.
Dec 13
Current Year
Dec 13
Next Year
Dec 14
Avg. Estimate 969.01M 985.86M 3.80B 4.17B
No. of Analysts 13 12 16 16
Low Estimate 941.30M 963.21M 3.74B 4.04B
High Estimate 983.64M 999.00M 3.82B 4.31B
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.