Sirius XM, intrinsic value current value three month six month and 12 month price predictions, why did Warren Buffett buy this stock?

Sirius XM's intrinsic value and price predictions:

1. Intrinsic Value: The intrinsic value of Sirius XM Holdings (SIRI) is not provided in the available data.
2. Current Value: The closing price of SIRI on October 25, 2024, is $26.75.

SIRI Trend

3. Three-Month Price Prediction: The interval percentage change for SIRI from July 26, 2024, to October 25, 2024, is -31.75%.

stock code include siri(1)

3-month's percentage change(1)

stock code include siri;3-month's percentage change(1)

last-price	last-change%	Interval Percentage Change%2024.07.26-2024.10.25
26.76	0.85%	-31.75

Ticker
SIRISirius XM Holdings

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4. Six-Month Price Prediction: The interval percentage change for SIRI from April 26, 2024, to October 25, 2024, is -11.42%.

stock code include siri(1)

6-month's percentage change(1)

stock code include siri;6-month's percentage change(1)

last-price	last-change%	Interval Percentage Change%2024.04.26-2024.10.25
26.76	0.85%	-11.41

Ticker
SIRISirius XM Holdings

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5. Twelve-Month Price Prediction: The interval percentage change for SIRI from October 26, 2023, to October 25, 2024, is -38.64%.

stock code include siri(1)

12-month's percentage change(1)

stock code include siri;12-month's percentage change(1)

last-price	last-change%	Interval Percentage Change%2023.10.26-2024.10.25
26.76	0.85%	-38.64

Ticker
SIRISirius XM Holdings

View 1 result

Why Warren Buffett bought this stock:

1. Understanding of the Business: Warren Buffett understands the subscription-based model of Sirius XM, having a background as a former paperboy and a fan of the service himself.
2. Market Position: Sirius XM has a dominant position in satellite radio and has expanded its reach into streaming music through its merger with Pandora. This diversified revenue stream aligns with Buffett's preference for companies with a strong competitive advantage.
3. Synergies and Growth Potential: The integration of Pandora with Sirius XM offers potential synergies in terms of cross-promotion and cost efficiencies, enhancing long-term growth prospects.
4. Management and Strategic Vision: Buffett values strong leadership and strategic direction, which he sees in the management of Sirius XM, particularly with CEO Jennifer Witz, who has a significant stake in the company.
5. Attractive Valuation: Buffett considers the price of Sirius XM to be below its intrinsic value, making it an investment opportunity.
6. Stability and Cash Flow: Sirius XM's subscription-based model provides consistent cash flow, and the company generates significant free cash flow, which allows for share buybacks and potential dividends, fitting Buffett’s preference for companies that return value to shareholders.

In conclusion, Warren Buffett's investment in Sirius XM is driven by his understanding of the business, the company's strong market position, the potential for synergies and growth, the strength of its management, the attractive valuation, and the stability and cash flow of the company. These factors contribute to the intrinsic value of Sirius XM, despite the recent price declines, making it an appealing investment for Buffett.