Sirius XM Holdings (NASDAQ: SIRI) Billionaires Are Betting Big on This High-Yield Turnaround Stock
Sirius XM Holdings (SIRI) has been one of the market’s laggards this year, with its stock tumbling more than 52% to levels not seen in five years. Despite this, recent SEC 13F filings reveal that some major institutional investors are taking new positions in the company, signaling that it may be undervalued. Warren Buffett’s Berkshire Hathaway, already a large shareholder, has maintained its stake, now worth approximately $2.9 billion. Additionally, Ken Griffin’s Citadel Advisors initiated a $59 million position in the third quarter, joining the list of funds that see potential in Sirius XM’s long-term prospects.
Sirius recently took significant steps to reset its trajectory. The company executed a 1-for-10 reverse stock split and separated from Liberty Media, simplifying its corporate structure to attract more institutional interest. At the same time, Sirius has been expanding its digital audio ecosystem, securing exclusive podcast advertising and distribution rights to bring in both paying subscribers and advertisers. These moves suggest a renewed focus on growth as the company seeks to capitalize on its strong brand presence in the digital audio space.
As the largest digital audio company in North America, Sirius benefits from a unique position as the sole holder of a commercial satellite license from the FCC. This creates a natural moat in the satellite radio market. Although subscriber numbers have declined and debt has been a concern, the company’s subscription-based revenue model offers the potential for consistent, recurring income—traits that align with value-focused investors. Coupled with a 4% dividend yield, Sirius provides income-focused investors with additional incentive to consider the stock.
The involvement of investors like Buffett underscores the potential in Sirius as a turnaround story. While not without risks, the company’s combination of strategic restructuring, institutional backing, and a strong dividend yield could make it an appealing opportunity for those seeking high-yield investments with growth potential. For retail investors, the institutional confidence reflected in recent filings may warrant a closer look. With the groundwork being laid for a recovery, Sirius could be positioned to surprise skeptics and reward patient investors.
