SiriusXM – Another $2 Billion in Share Buybacks
SiriusXM (NASDAQ:SIRI)announced today that the company is authorizing another $2 Billion in share buybacks. As part of the program, Liberty Media (NASDAQ:LMCA) will participate by selling $500 million of its stake. The sale by Liberty Media will still leave Liberty firmly in control of the satellite radio provider with a 52% stake in SiriusXM. Added to the previously approved $2 billion, the total for share buybacks will no\w stand at $4 billion.
Since the first share buyback announcement, SiriusXM has spent $1.6 billion and repurchased 476,545,601 shares of its stock. The Liberty shares will be bought in installments with shares bought in November 2013, January 2014 and April 2014. The company stated that the purchases may be accelerated under certain circumstances. If we use a $4 average price, the Liberty transaction alone will cover 125 million shares.
SiriusXM is up in pre-market on the news. The company will likely conduct its Q3 conference call in the next 3 weeks. It is anticipated that the company will report very good numbers across the board. Between a new share buyback program and a good Q3, SiriusXM can likely challenge price points above $4 per share in the near term.
Thanks Spencer…The 3rd qtr CC is set for Oct 24th! Thats only 2 weeks away!! Good #s and buyback…the dog will seriously test $4…with any good macro news…$4 will fall!
I noticed on one of sites reporting the buyback that there was a ceiling of a $4.18 price and a floor of $3.64 for the buybacks from Liberty, no matter what the 10 day avg price is. Any thoughts on this arrangement?
I think there is not much chance that SIRI gets below $3.64 (barring a general market meltdown). I like the fact that Sirius XM will not pay more than $4.18 per share because it puts a minimum amount of shares that will be retired. I think this is expecially important because the price will be set shortly after the quarterly meeting.
Whatever happened to Rocco Pendola? I have not seen one of his SIRI bashing articles in some time.