October 14, 2024

Struggling Sirius XM Stock Gets Berkshire, Buffett Boost

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SIRI is sharply lower in 2024 but Warren Buffett keeps upping his stake, per SEC filings

Sirius XM Holdings Inc (NASDAQ:SIRI) stock is up 6.4% to trade at $26.47 today, one of the better stocks on the Nasdaq today. In a SEC filing, Warren Buffett’s Berkshire Hathaway (BRK) revealed an increased stake in the satellite broadcaster. Last week, Buffett purchased 3.6 million shares of SIRI, bringing Berkshire’s total holdings to 108 million.

Sirius XM needed it. The stock is down 51% in 2024 and fell to a 12-year low of $22.18 on Oct. 7. The shares looked ready to rally in July, but found resistance at their 200-day moving average.

Options traders are all in on calls. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), traders have bought to open 15,155 calls in the past two weeks, compared to 1,167 calls. The resultant 10-day call/put volume ratio ranks in middling 90th percentile of its annual range, indicating the rate of put buying has tapered off. Considering short interest is up 23% in the most recent reporting period and the stock’s technical troubles, some of these calls could be shorts seeking an options hedge.

Today is no different, with 12,000 calls changing hands in the first hour of trading, volume that’s three times the average intraday amount. The November 28 call is seeing notable activity, with new positions being bought to open.

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