Barrington Says Sirius (SIRI) Could Bring Share Buyback by Next Year
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Price: $3.89 -0.26%
Rating Summary:
11 Buy, 10 Hold, 7 Sell
Rating Trend: Up
Today's Overall Ratings:
Up: 13 | Down: 10 | New: 11
Rating Summary:
11 Buy, 10 Hold, 7 Sell
Rating Trend: Up
Today's Overall Ratings:
Up: 13 | Down: 10 | New: 11
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Barrington Research analyst James Goss on Tuesday reiterated an Outperform rating on shares of Sirius XM Radio (NASDAQ: SIRI) following the company reporting a surprise fourth quarter loss on Tuesday.
Goss said that the focus should be on what was said on the company's conference call, as Sirius CEO Mel Karmazin said that the company has not decided what to do with its free cash flow, but added that a share buyback is a better way of returning capital to shareholders compared to a dividend payment.
Karmazin could be ready to seriously consider repurchases sometime next year according to Goss.
"Two year years ago, almost to the day, they were on the brink of bankruptcy," Goss said. "Here we are two years later, and they’ve been able to increase the size of multiple bond offerings based on stronger demand. I can’t recall too many companies going from one extreme to the other this quickly."
Shares of Sirius are down 15 cents to $1.68 in late market movement on Tuesday.
Goss said that the focus should be on what was said on the company's conference call, as Sirius CEO Mel Karmazin said that the company has not decided what to do with its free cash flow, but added that a share buyback is a better way of returning capital to shareholders compared to a dividend payment.
Karmazin could be ready to seriously consider repurchases sometime next year according to Goss.
"Two year years ago, almost to the day, they were on the brink of bankruptcy," Goss said. "Here we are two years later, and they’ve been able to increase the size of multiple bond offerings based on stronger demand. I can’t recall too many companies going from one extreme to the other this quickly."
Shares of Sirius are down 15 cents to $1.68 in late market movement on Tuesday.
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