By Sirius XM Holdings Inc. (SIRI) experienced a significant surge in its stock price on Thursday, leading to a 9% pullback in premarket trades on Friday. The stock jumped an impressive 42.3% during Thursday’s session, with multiple trading halts due to volatility. Trading volume was remarkably high at almost 128 million shares, well above its 30-day average of about 21.4 million shares.
The recent rise in Sirius XM’s stock price can be attributed to short covering and potential buying related to the rebalancing of the Nasdaq 100 index. Benchmark, a market research firm, released a note on Friday increasing its price target for Sirius XM to $7 from $6, while maintaining a buy rating. The firm also highlighted the impact of the split-off of the MLB Atlanta Braves team parent, Atlanta Braves Holding Inc., by owner Liberty Media Corp. (LSXMA, LSXMB, FWONA, FWONK).
Benchmark analyst Matthew Harrigan emphasized the attractiveness of Sirius XM’s business fundamentals and the likelihood of a transaction with Liberty, particularly following the Braves split-off. He also mentioned the tracking stock reclassification on August 3rd and the creation of the new Liberty Live tracking stock.
Over the last three months, Sirius XM’s stock has risen by an impressive 103.4%, outpacing the S&P 500 index’s gain of 9.8%. Despite a potential immediate retreat in stock price, Benchmark remains optimistic about the company’s future prospects.
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