The latest publication of short interest data suggests that the recent correction in Sirius XM shares is nothing more than an irrational market movement that’s disguised as a buying opportunity.
A sharp increase in the metric, for any concerned company, usually indicates that market participants are betting on its stock price to collapse and are initiating short positions in its scrip.
Conversely, a sharp decline in the metric generally indicates that bears are closing their short positions as they no longer see a substantial downside in its shares from the current levels.
If the market was doubting the growth potential of Sirius XM, we would’ve seen its forward-looking valuation multiples surge (due to lower forecasts and high stock price).
The fact that there hasn’t been a buildup of short positions against Sirius XM stock, and that its shares seem to be consolidating instead of heading south, leads me to believe that probably there isn’t a credible bear case to begin with.
- Sarbit Advisory Services Inc Decreased Sirius Xm Hldgs Inc (NASDAQ:SIRI) Stake ...BZ Weekly
- Sirius XM Holdings Inc. (SIRI) to Post Q4 2017 Earnings of $0.04 Per Share ...The Ledger Gazette
- Somewhat Favorable News Coverage Somewhat Unlikely to Affect Sirius XM ...Week Herald
- Liberty Capital Management Has Lowered By $688000 Its Sirius Xm Hldgs Com ...FlintDaily.com
- Top of the chart stocks in today's market: Sirius XM Holdings Inc. (NASDAQ:SIRI)The News Journal
- Sirius XM Holdings Inc. (SIRI) Declares Dividend Increase – $0.01 Per ShareWeek Herald
- Technical Intermediate look - Sirius XM Holdings Inc. (SIRI)Newburgh Gazette
- Under Analysts Radar: Sirius XM Holdings I (SIRI)GkMen
- Plowing up the statistics on: Sirius XM Holdings Inc. (NASDAQ:SIRI)The News Journal