Liberty Sirius: A Buffett Bet

06/13/2017 2:56 am EST

Focus: STOCKS

Stephen Biggar

Director, Product Strategy, Argus Research Corporation

Vickers Stock Research, Argus’ sister company, calculates proprietary Sell/Buy Ratios using data from recent Form-4 filings (through which insiders register purchases and sales of their stock with the SEC), notes Stephen Biggar of Argus Research, a leading independent investment research firm.

In our latest review of insider trends, we note that Berkshire Hathaway (BRK.A) has been increasing its holdings of Liberty Sirius XM Group (LSXMA).

Berkshire, through a number of subsidiaries and pension plans, currently owns a total of 14,482,703 LSXMA shares.

Berkshire filed its Form-3 on April 19, reporting the holding of 10,683,800 Series A shares and 23,357,109 Series C shares. The shares were trading at $38.45 on that day and have since risen to $41.78, a gain of nearly 9%.

Liberty Sirius is a $13.97 billion market-cap Cable & Satellite company, trading around $41.40 per share within a 52-week range of $29.26-$42.17.

The company is expected to post a profit in 2017 and 2018, and EPS estimates for 2018 are rising. Revenue is expected to rise in 2018 to $5.65 billion. Cash on the balance sheet is $330M, while debt is 18.9X cash at $6.24B.

The LSXMA shares sport a P/E of 30.3. They are also trading at a price to book ratio of 1.4, a price to sales ratio of 2.7 and a price to cash flow ratio of 8.5.

There are currently eight analysts covering the company and all have a BUY, Outperform or Overweight rating; the consensus target price for Liberty Sirius XM Group is $46 a share.

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