SIRI
Sirius Xm Holdings INC
NASDAQ
Form 4: Berkshire Hathaway Increases Stake in Sirius XM Holdings
Sentiment:
SEC Form 4 Filing
11 October 2024 7:07 PM
Berkshire Hathaway, led by Warren Buffett, has increased its ownership in Sirius XM Holdings through a series of open market purchases.
Better than expected
The document contains better than expected results because a major investor, Berkshire Hathaway, is increasing its stake in the company, signaling confidence in its future prospects.
Summary
- Berkshire Hathaway Inc. has filed a Form 4 with the SEC, disclosing changes in its beneficial ownership of Sirius XM Holdings Inc. (SIRI).
- The transactions involve the purchase of Sirius XM common stock on October 9, 10, and 11, 2024.
- On October 9, 2024, Berkshire acquired 869,800 shares at a weighted average price of $23.5523 per share.
- On October 10, 2024, Berkshire purchased 917,846 shares at a weighted average price of $24.1618 and an additional 517,154 shares at a weighted average price of $24.4668.
- On October 11, 2024, Berkshire acquired 1,259,259 shares at a weighted average price of $24.9474.
- Following these transactions, Berkshire Hathaway's total indirect ownership in Sirius XM Holdings amounts to 108,719,088 shares.
- These shares are held by various Berkshire Hathaway subsidiaries, including Government Employees Insurance Company, National Fire & Marine Insurance Company, and National Indemnity Company.
- Warren Buffett, as the controlling stockholder of Berkshire Hathaway, may be deemed to beneficially own the shares held by these subsidiaries, but he disclaims beneficial ownership except to the extent of his pecuniary interest.
Sentiment
Score: 7
Explanation: The sentiment is moderately positive due to Berkshire Hathaway's increased investment, which suggests confidence in Sirius XM's future. However, it's important to consider the broader market context and potential risks.
Positives
- Berkshire Hathaway's increased investment in Sirius XM could be interpreted as a positive signal about the company's prospects.
- The purchases demonstrate confidence from a well-respected investor like Warren Buffett.
Industry Context
Berkshire Hathaway's investment activity is closely watched by the market, and changes in their holdings can influence investor sentiment towards the companies they invest in. Sirius XM operates in the competitive audio entertainment industry, facing challenges from streaming services and other media platforms.
Comparison to Industry Standards
- It's difficult to directly compare these transactions to industry standards without knowing the specific investment strategies of comparable companies.
- However, large institutional investors like Berkshire Hathaway often make strategic investments based on their assessment of a company's long-term value and growth potential.
- Other major shareholders in Sirius XM could include institutional investors like The Vanguard Group and BlackRock, and their trading activity would also be relevant for comparison.
Stakeholder Impact
- Shareholders may view Berkshire Hathaway's increased stake as a positive sign.
- Employees may feel more secure knowing a large, stable investor is backing the company.
Key Dates
- 10/09/2024: Berkshire Hathaway purchased 869,800 shares of Sirius XM common stock.
- 10/10/2024: Berkshire Hathaway purchased 917,846 shares and 517,154 shares of Sirius XM common stock.
- 10/11/2024: Berkshire Hathaway purchased 1,259,259 shares of Sirius XM common stock.
- 10/11/2024: Date of signature for the SEC filing.
Keywords
SIRI
Sirius Xm Holdings INC
NASDAQ
Sector: Communication Services
Filings with Classifications
Worse than expected
1 May 2025 9:27 AM
Quarterly Report
- Total revenue decreased by 4% year-over-year.
- Subscriber revenue decreased by 5% due to lower subscriber numbers and ARPU.
- Adjusted EBITDA decreased by 3% to $629 million.
- Free cash flow decreased by 36% to $56 million.
- Sirius XM subscribers decreased by 2% to 32.9 million.
- Pandora monthly active users decreased by 6% to 42.4 million.
Worse than expected
14 April 2025 4:01 PM
Proxy Statement
- The company's performance against the 2024 bonus plan resulted in overall funding at 43% of target awards, indicating worse than expected results.
- SiriusXM did not meet the goals set forth in its bonus plan for 2024, with performance below threshold for total revenue and SiriusXM self-pay subscribers.
Worse than expected
30 January 2025 9:20 AM
Annual Results
- The company reported a net loss of $2,075 million, a significant downturn compared to a net income of $988 million in 2023.
- SiriusXM experienced a subscriber loss of 649,000, ending the year with 33.2 million subscribers.
- The company's adjusted EBITDA decreased by 2% to $2,732 million, and free cash flow fell by 14% to $1,015 million.
Worse than expected
30 January 2025 8:02 AM
Quarterly Report
- The company reported a net loss of $2.08 billion for the full year, primarily due to a non-cash impairment charge, indicating worse than expected results.
- Full-year revenue decreased by 3% and adjusted EBITDA decreased by 2%, showing a decline in financial performance compared to the previous year.
Worse than expected
10 December 2024 8:30 AM
Strategic Update and Executive Appointment
- The company is facing marketplace headwinds impacting its growth trajectory, leading to a strategic shift and cost-cutting measures.
- The 2025 revenue guidance of $8.5 billion is lower than the 2024 guidance of approximately $8.675 billion, indicating a potential decline in revenue.
Capital raise
31 October 2024 10:19 AM
Quarterly Report
- The company has $1.5 billion available for future borrowing under the Credit Facility and $490 million available under the Incremental Term Loan.
- The company may from time to time purchase its outstanding debt through open market purchases, privately negotiated transactions or otherwise.
- The company expects to use the proceeds of the Incremental Term Loan to refinance the Exchangeable Notes.
- If additional debt financing is not available, the company may obtain liquidity through the issuance and sale of its equity securities.
Worse than expected
31 October 2024 10:19 AM
Quarterly Report
- The company reported a significant net loss of $2.96 billion, a substantial downturn from the net income of $291 million in the same period last year.
- The loss was primarily driven by a $3.35 billion impairment charge related to goodwill and non-controlling investments.
- Total revenue decreased by 4% year-over-year, with declines in both Sirius XM and Pandora segments.
- Sirius XM's subscriber base and ARPU declined, and Pandora's monthly active users and subscribers also decreased.
Worse than expected
31 October 2024 7:56 AM
Quarterly Report
- The company reported a net loss of $2.96 billion, primarily due to a non-cash impairment charge, which is significantly worse than the net income of $291 million in the same quarter of the previous year.
- Revenue decreased by 4% year-over-year, indicating a decline in the company's top-line performance.
- Adjusted EBITDA decreased by 7% year-over-year, showing a decline in profitability.
Better than expected
11 October 2024 7:07 PM
SEC Form 4 Filing
- The document contains better than expected results because a major investor, Berkshire Hathaway, is increasing its stake in the company, signaling confidence in its future prospects.
Worse than expected
7 October 2024 4:43 PM
SEC Filing (Form 4/A)
- The document indicates a restatement of previously filed information due to inaccuracies in the original filing, suggesting a potential lapse in internal controls or reporting procedures.
Worse than expected
1 August 2024 9:38 AM
Quarterly Report
- The company's total revenue decreased by 3% year-over-year.
- Sirius XM's subscriber base declined to 33.3 million.
- Pandora's monthly active users decreased by 5% to 45.1 million.
Worse than expected
1 August 2024 7:58 AM
Quarterly Report
- The company's revenue decreased by 3% year-over-year, indicating a worse performance compared to the previous year.
- SiriusXM's self-pay subscribers decreased by approximately 100,000, which is a negative trend.
Worse than expected
30 April 2024 9:25 AM
Quarterly Report
- The company experienced a decline in its subscriber base for both Sirius XM and Pandora, indicating worse than expected performance in user acquisition and retention.
Worse than expected
1 February 2024 9:35 AM
Annual Results
- The company's total revenue, subscriber numbers, adjusted EBITDA, and free cash flow all decreased year-over-year, indicating worse than expected results.
Worse than expected
1 February 2024 7:58 AM
Quarterly Report
- The company's adjusted EBITDA and free cash flow decreased year-over-year, indicating a decline in profitability.
- SiriusXM's self-pay subscriber base decreased for the full year, which is a negative trend for a subscription-based business.
- The company's revenue decreased by 1% year-over-year, indicating a lack of growth.
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