SXM purchased 65 million open-market shares for $210 million so far this year based on this statement from today's 8-K:
“Tomorrow, we are scheduled to repurchase 93 million shares from Liberty Media for $340 million, bringing total share repurchases for the year to 158 million shares for $550 million and leaving us with $1.7 billion remaining under our share repurchase authorization. Total debt to adjusted EBITDA at the end of the first quarter 2014 was 2.8 times, below our 4.0 times leverage target. We expect to opportunistically tap the debt markets this year as we move towards our leverage target, ” added Frear.
So, SXM has been buying during this downturn at an average cost of $3.23 per share. There were concerns that they had to wait until the Liberty purchase had finished (i.e., couldn't do any buyback until tomorrow), but these concerns have now proven to be unfounded.
Also, based on the above statement regarding a debt leverage target of 4 times adjusted EBITDA, SXM can comfortably borrow up to $1.26 billion (coincidentally, the amount of the current revolver) and use about $500 million in 2014 FCF to hit its remaining $1.7 billion share repurchase authorization. Even at an average price of $4 per share, that $1.7 billion will reduce the outstanding share count by about 425 million shares (about 7% of 6.059 billion outstanding shares as of 3/31/2014).
And finally, the P&F chart hit a double top breakout today and has a bullish price objective of $3.71. Let's keep the mo going!