Sirius (SIRI) Investors Taking Profits Amid Miller Tabak Downgrade

Shares of Sirius XM Radio (Nasdaq: SIRI) are giving back some recent gains Tuesday as Miller Tabak's David Joyce downgraded the stock earlier. Sirius shares last traded at $2.33, down nearly 3 percent for the session.

Joyce now rates Sirius a Neutral, down from Buy previously. The analyst maintained a $2.55 price target.

Shares of Sirius are up about 8 percent since Friday amid chatter Liberty Media (Nasdaq: LMCA) could be gaming for a hostile takeover of Sirius' licenses. Joyce said, "A significant amount of the YTD +32% performance is related to moves in March by as-converted 40%-owner Liberty Media applying at the Federal Communications Commission to be granted de facto control of Sirius XM's various licenses."

Joyce sees the likelihood of a voluntary share buyback by Sirius as low: "While SIRI management would likely benefit from buybacks (assuming a positive effect on the share price), at this point such a move would play into LMCA's strategy... The expiration of an Investment Agreement on 3/6/12 removes the prohibition against LMCA buying SIRI shares in the open market."

Track all the market-moving analyst action on shares of Sirius with our Analyst Ratings page.

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