Berkshire Hathaway (BRK.A) (BRK.B), led by legendary investor Warren Buffett, recently raised its stake in satellite radio company SiriusXM (SIRI) to $2.9 billion. This move reflects Berkshire’s confidence in the company’s long-term prospects. It is worth noting that the investment comes on the heels of SiriusXM’s strong fourth-quarter results.
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According to the SEC filing, Berkshire purchased 2.3 million shares on January 30, January 31, and February 3, for a total value of about $54 million. The shares were bought at an average price of about $23.37. This latest transaction brings Berkshire’s total ownership in SIRI stock to 35%.
Investors should note that Berkshire began investing in Sirius XM in the fourth quarter of 2016. Over the years, Berkshire steadily increased its stake in the stock, especially during periods when the stock price was lower. Importantly, Berkshire Hathaway made several purchases in October and December 2024, worth nearly $297 million.
SIRI Reports Strong Q4 Results
SiriusXM reported robust Q4 results, beating both top- and bottom-line numbers. The results benefited from strong demand for live sports content and partnerships with major automakers like Toyota (TM) and Tesla (TSLA). The company’s Q4 earnings increased 23.9% to $0.83, while revenue declined over 4% to $2.19 billion. Nevertheless, SIRI added about 150,000 self-pay subscribers in Q4, up 18,000 from the year-ago quarter.
Looking ahead, the company is optimistic about future opportunities in podcasting and advertising businesses. Further, Sirius XM remained focused on improving efficiency and targets $200 million in annual savings by the end of 2025.
It’s likely that Sirius XM’s impressive performance and positive outlook boosted the ace investor’s confidence.
Is SIRI a Good Stock to Buy?
On TipRanks, Sirius XM has a Hold consensus rating based on three Buys, five Holds, and four Sells assigned in the last three months. At $23.85, the average Sirius XM price target implies a 0.62% downside potential. Shares of the company have declined 18.75% over the past six months.
