After seeing several trading halts yesterday, shares of audio entertainment company Sirius XM Holdings (NASDAQ:SIRI) continue to remain front and center on investors’ screens with sky-high trading volumes. Over the last ten days, 17.27 million shares have changed hands on average. While the stock is down nearly 11% at the time of writing, it is still up about 46% over the past five sessions alone. And all this while short interest remains sky-high at about 33.7%.
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While there is no discernable news about the company yet, it is safe to assume the high short interest can quickly feedback into a short squeeze. Further, the company’s second-quarter results are coming up on August 1, and the Street largely expects an EPS of $0.07 for the period. In the year-ago quarter, SIRI had delivered an EPS of $0.07, missing expectations by $0.01.
After the recent price runup, the stock is also seeing major analyst action today. Seaport Global’s David Joyce has lowered the rating on SIRI to a Sell from a Hold alongside a $4.50 price target. Pivotal Research’s Jeffrey Wlodarczak, too, has followed suit with a Sell while increasing the price target to $4.50 from $4.
Benchmark’s Matthew Harrigan, though, is bucking the trend with a reiterated Buy rating and a price target boost to $7 from $6.
On average, analysts’ views attribute the rally to a short squeeze and the impact of the NASDAQ-100 rebalancing. Overall, the Street has a $4.16 consensus price target on SIRI alongside a Hold consensus rating.
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