Is Sirius XM Stock Finally Ready to Bounce Back in 2024?
The biggest thing holding back one of this year's worst large-cap performers is now fading in the rearview mirror. Sirius XM Holdings (NASDAQ: SIRI) has now completed its combination with media mogul John Malone's controlling stake in the satellite radio platform. The Liberty Sirius XM Group tracking shares that were a distraction and historically traded at a wide discount to the common shares were officially absorbed into the main company after Monday's market close.
There will be some transitory confusion. The 1-for-10 reverse stock split that took place at Tuesday's opening may prove jarring, especially given the poor fate of most companies that have chosen to go this typically desperate route for listing eligibility purposes. The share count itself isn't expanding, but with a larger float of Sirius XM it could impact near-term trading behavior on the long and short side of the trade. Some arbs that were in the tracking shares to cash in on the gradually thinning discount over the last two years could sell now that the mission is complete.
There's a lot happening right now. It should be worth it for suffering Sirius XM shareholders by the time the dust clears. Let's dive into why this could be the bottom that opportunists were waiting for.
Source Fool.com
