Sirius XM Holdings Inc. siri shares,
US auto fell 3.8% in morning trading on Friday toward a six-week low as JPMorgan analyst Sebastiano Petti took a sharper stance on the satellite radio company, as semiconductor shortages and supply chain woes crippled supply. Amidst continued weakness in sales. The stock is on track to break a six-day winning streak, which would be the longest streak in 10 months. Petty downgraded the stock’s rating from near neutral, and lowered the price target from $7 to $6. “we expect [Sirius’] Petty wrote in a note to customers, “The early 2022 self-pay net aid guide to reflect higher-than-normal levels of conservatism given the uncertain new auto sales environment, given the auto industry chip shortages and other supply chains.” Continues to work through the issues.” The slow-growth outlook prompted them to lower their 2022 estimate for free cash flow, which also suggests fewer share repurchases. The company expects to report fourth quarter results on February 1. While the expected announcement of a special dividend, which it expects to be 25 cents a share, could improve investor sentiment, “slower buyback momentum is likely to be weighing on the shares.” The stock has gained 1.5% over the past three months, while the S&P 500 SPX,
has increased by 4.8%.