Sirius Stock Rises on Short Squeeze as Liberty Media Arbitrage Backfires -- Barrons.com
4:45 pm ET July 19, 2023 (Dow Jones) Print
An apparent short squeeze in SiriusXM, which has the highest ratio of short interest to its publicly available float among companies in the Russell1000 index, appears to be driving up the stock of the satellite radio operator.
SiriusXM (Ticker SIRI) is up 0.4% Wednesday to $5.31 after gaining 7% Tuesday. The stock has risen 25% in the past month.
"There has been a huge rally in the most shorted stocks in the last six weeks," says Jeff Wlodarczak, an analyst with Pivotal Research Group. He says SiriusXM has been one of the beneficiaries.
The rally in SiriusXM has stung investors who have a popular spread trade that involves a long position in LIberty SiriusXM Group (LSXMA, LSXMK), a tracking stock for Liberty Media, and a short position in Sirius.
In the past month, the Sirius/Liberty Sirius XM arbitrage trade has hurt investors with Sirius rising 35% and Liberty Sirius XM gaining just 12%. Liberty SiriusXM's nonvoting "K" shares (LSXMK) are up 0.4% Wednesday to $34.81.
The discount of LIberty SiriusXM relative to Sirius hit around 45% Tuesday, compared with 35% in June.
SiriusXM has a thin float -- or amount of stock available for trading. That's because Liberty Media, controlled by mogul John Malone, holds 3.2 billion of its shares, or a roughly 83% stake. The recent short interest in SiriusXM of 219 million shares represents about a third of the public float of around 700 million, Bloomberg data show.
Other companies with high short interest ratios in the Russell 1000 also have rallied lately including Wayfair (Ticker W), Coinbase Global (COIN), and QuantumScape (QS).
How high is the short sqeeze run ??
Yep. Same to you. Enjoy your 4th.
Agreed. Not to deep nor very prolonged.
Here's to "holding and waiting" and having a safe and happy 4th of July!
I think we might see a pullback on Wednesday.
Great day today. Hopefully more to come.
"just holding and waiting" Yep, do a lot of that with this stock.
Looks like the reversal is on.
A little too early !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
I’ll say what a dip think the bottom is in we need a reversal
Dove in at 5.80
Wish us all good fortune.
this stock should have been taken private 5-10 years ago
no reason for it to be publicly traded
One can hypothesize that Satellite radio may become free with monetized content and much more like Traditional AMFM Radio of Today and Times Past.
Thank You !! I seen it posted somewhere yesterday but I could not remember who gave the price target !!!!!!!!!!!!!!!!!!!!
I think once Liberty reaches 80%-81% we will see a nice dividend increase and a price spike,
*MW Sirius XM stock price target raised to $10 from $8 at Benchmark
That was in news when you pull it up on TDAMERITRADE. Put up yesterday. I don’t know who MW is but it was posted by TD.
Who raised SIRI price target from $8.00 to $10.00 ???????????????????????
this company should be reducing debt and the float
Their price target was just raised from $8 to $10
why is this stock even publicly traded anymore?
4 billion OS but the float is 849M?
Concur, I have owned F long ago and now own SIRI. I bought on a "strong buy", recommendation. As soon as this goes back above 6.55 Im out for good. Whenever that is??????????
Sirius Satellite Radio Inc. (NasdaqNM:SIRI) 1221 Avenue of the Americas; 36th Floor; New York, NY 10020
Phone: 212-584-5100......................Fax: 212-899-5050
About SIRIUS XM Radio
SIRIUS XM Radio is America's satellite radio company delivering the "The Best Radio on Radio" to more than 18 million subscribers, including 100% commercial free music, and premier sports, news, talk, entertainment, traffic and weather.
SIRIUS XM Radio has exclusive content relationships with an array of personalities and artists, including Howard Stern, Oprah, Martha Stewart, Jimmy Buffett, Elvis, Jamie Foxx, Barbara Walters, Frank Sinatra, Opie & Anthony, The Grateful Dead, Willie Nelson, Bob Dylan, Dale Earnhardt Jr., Tom Petty, and Bob Edwards. SIRIUS XM Radio is the leader in sports programming as the Official Satellite Radio Partner of the NFL, Major League Baseball, NASCAR, NHL, and PGA Tour, and broadcasts major college sports.
SIRIUS XM Radio has exclusive arrangements with EVERY major automaker. SIRIUS XM Radio products are available at shop.sirius.com and shop.xmradio.com, and at retail locations nationwide, including Best Buy, Circuit City, RadioShack, Target, Sam's Club, and Wal-Mart.
SIRIUS XM Radio also offers SIRIUS Backseat TV, the first ever live in- vehicle rear seat entertainment featuring Nickelodeon, Disney Channel and Cartoon Network; XM NavTraffic service for GPS navigation systems delivers real-time traffic information, including accidents and road construction, for more than 80 North American markets.