Sirius XM Radio (NASDAQ:SIRI) now successfully completed 60-plus direct content deals with labels

Posted by on Dec 20, 2012

Sirius XM Radio Inc (NASDAQ:SIRI) disclosed in front of a panel of Copyright Royalty Board (CRB) judges that it has now successfully secured more than 60 direct content licenses with labels, with more than 7,000 artists, 9,000 albums, and 110,000 songs represented.

The company revealed during an extensive testimony that these licenses provide the best possible evidence about how an aggressive market values the rights covered by the statutory license, including as they complete deals including the very same rights between the very same buyer and sellers as are involved in this proceeding.

Sirius (SIRI) added that in point of fact, these transactions have a broader range of uses as compared to the rights being offered by SoundExchange, and fall into the below-market range of between 5 and 7 percent of Sirius’ gross revenue. The company said that the evidence will make clear that the market rate for sound recording performance rights is actually lower than the current statutory rate.

Make an opinion on the latest price movement using some technical indicators

The SIRI stock closed at $2.96, same as previous close and at a distance of +8.05% from 20-day simple moving average. In the last trading session, the stock’s price moved 27.65% above its 200 day moving average, changing hands as low as $2.90 per share. The stock is currently trading 8.16% up its SMA 50.

How well the stock has been performing?

The percentage change in the price over the past fifty two weeks remained at +65.36%. The price range in the same period had a highest hit of $3.01 on Dec 18, 2012 while lowest level during that period was $1.78 on May 17, 2012. The 1-year target price estimate, which is the median price target, as set by analysts covering the stock is $3.25. The stock in last 12 months gained 70.11% and has advanced 65.36% since the beginning of this year.

Does stock market trend influences this stock?

This stock is more risky when compared to the shifts in the equity markets as its beta value is standing at 2.15. To measure price-variation, we found this stock’s volatility over a week period was 4.14% and for the month was 2.86%.

What is Wall Street analysts’ recommendation on this stock?

The analyst mean recommendation for this week has been 2.1, same as was in the last week. The price target of $2.25 was the lowest while the highest price target was set as $4.00, according to 15 analysts surveyed by Thomson Reuters.

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