Should you invest in SIRI shares after launching a new premium subscription product?

By: Motiur Rahman
Motiur Rahman
Md Motiur is a Financial Analyst at Invezz covering the North American, European and Asian stock markets. He has… read more.
on Sep 21, 2021
  • Sirius XM shares on Tuesday edged slightly higher after launching a new premium subscription product.
  • The company has teamed up with Marvel Entertainment to launch Marvel Podcasts Unlimited.
  • The product will be available in more than 170 countries and regions for $3.99 a month.

On Tuesday, Sirius XM Inc. (NASDAQ:SIRI) shares edged slightly higher after announcing a partnership deal with Marvel Entertainment for a new premium subscription product. The company has teamed up with the Walt Disney Co (NYSE:DIS) subsidiary to launch Marvel Podcasts Unlimited, a premium product available on the new Marvel Channel on Apple podcasts.

The service will be accessible from 170 countries and regions for $3.99 following a 7-day free trial period. Subscribers will be able to watch scripted and unscripted series from the Marvel brand, including popular characters such as Wolverine, Star-Lord, Hawkeye, Black Widow, and Doctor Doom.

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Some of the shows that subscribers can look forward to including, This Week in Marvel, Women of Marvel, Marvel’s Voices, and Marvel’s Pull List.

Is SIRI stock a good buy in September 2021?

From a valuation perspective, Sirius XM shares look steeply valued at a trailing P/E ratio of 103.45. However, the company’s forward P/E of 18.40 could be compelling to investors. 

Moreover, analysts expect Sirius XM earnings per share to grow at an average annual rate of about 10% over the next five years, making the stock attractive to growth investors. For reference, SIRI averaged an annual EPS growth rate of -19.70 in the previous five years.

Therefore, it seems as though the company could be turning a corner after a tough period ravaged by the adverse economic effects of the coronavirus pandemic. The stock has been significantly volatile this year, swinging to a net year-to-date decline of 2.19%.

Source – TradingView

Has Sirius XM stock found support?

Technically, Sirius XM shares seem to be trading at a crucial support level around the $6.00 level. Moreover, the stock has recently pulled back to trade closer to the oversold conditions of the 14-day RSI, after finding resistance off the 100-day moving average.

Therefore, the SIRI stock seems poised for an inevitable rebound following Tuesday’s premium product launch. 

As a result, investors can target potential rebound profits at approximately $6.15 or higher at $6.33, on the other hand, if the stock extends the current pullback, it could find more support at $5.90 or lower at $5.74.

Bottom line: it could be time to buy the Sirius XM rebound

In summary, Sirius XM shares appear to be trading under significant downward pressure. However, the stock price also seems to have found support, triggering a slight rebound.

Therefore, with the company announcing a strategic partnership with Marvel Entertainment to launch an additional premium subscription product, it could be the perfect catalyst for more upward movement.

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