BUZZ-Sirius XM falls after beginning trading under new structure; cuts 2024 FCF target
Sirius XM Holdingsshares fell 7.3% to $3.73 after starting trading under a new structure following a merger with Liberty Media. The company anticipates $300 million in costs from the transaction and has revised its 2024 free cash flow target to $1.0 billion, a 16% decrease. SiriusXM's board approved a $1.17 billion stock repurchase program and executed a 1-for-10 stock split. Year-to-date, the stock is down 53.6%, with brokerages rating it as 4 buy, 5 hold, and 3 sell, with a median price target of $4.50.
Radio company Sirius XM Holdings’ (SIRI.O) shares fall 7.3% to $24.73
Co begins trading under new structure after billionaire John Malone’s Liberty Media completed a merger of its business that holds a majority stake in the radio company with the rest of Sirius XM.
As a result of expenses stemming from the transaction, co expects about $200 million in costs
SIRI now expects annual free cash flow of $1.0 billion for 2024, down more than 16% from its earlier target of $1.20 billion
SiriusXM’s board authorized a common stock repurchase program for about $1.17 billion; the program is a continuation of the stock repurchase program of the former SiriusXM
Co also undertook a 1 for 10 stock split upon closing of the transaction
4 of 12 brokerages rate the stock “buy” or higher, 5 “hold” and 3 “sell” or lower; their median PT is $32.50
SIRI down 53.6% YTD
