Did Warren Buffett Go Bargain Hunting? Berkshire Ups Sirius XM Stake To 37% With $107M Buy After Earnings Slide
Synopsis
Sirius XM reported its second-quarter results last week, which showed an earnings miss and a revenue decline, driven by weak advertising revenue and higher subscriber acquisition costs.
Warren Buffett-led Berkshire Hathaway, Inc. (BRK-A), (BRK-B) has doubled down on Sirius XM Holdings (SIRI) stock, as it picked up additional shares in the New York-based broadcasting company.
Sirius XM stock has fallen about 3% year-to-date.
The investment holding company disclosed in a filing late Monday that it acquired 50.30 million shares in a series of transactions spanning from July 31 to Aug. 4.
Based on the weighted average price of the stock provided by Berkshire, the company spent $106.45 million on the purchase.
Following the transactions, Berkshire now held 124.81 million Sirius shares, representing roughly 37% of the latter’s outstanding shares.
Berkshire first invested in Liberty Media’s tracking stock in 2016 and began amassing Sirius XM’s tracking stock in early 2024 as an arbitrage play, Barron’s reported. At that time, Liberty Sirius’ stock was trading at a discount to the value of its stake in Sirius XM.
In September 2024, Liberty Media combined the Sirius XM tracking stock with Sirius XM, and the consolidated company began to trade as a public company under the Sirius XM brand.
Berkshire has been accumulating Sirius XM stock since then.
Sirius XM reported its second-quarter results last week (July 31, before the market opened), which showed an earnings miss and a revenue decline, driven by weak advertising revenue and higher subscriber acquisition costs. The stock has shed about 6% since then.
On Stocktwits, sentiment toward Sirius XM stock stayed ‘neutral’ (53/100) by late Monday, while the message volume remained ‘high.’
A bearish watcher said Berkshire bailed out of Paramount and subsequently Kraft, and that they wouldn’t be surprised if Buffett does the same with Sirius XM.
Sirius XM stock, which settled Monday’s session up 2.08% at $21.62, was up 0.93% in overnight trading.
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