Analyst Expects Sirius XM Stock to Break Out

SIRI shares have been consolidating atop their 200-day moving average

by Josh Selway

Published on Jan 19, 2018 at 9:52 AM
Updated on Jan 19, 2018 at 10:09 AM

Sirius XM Holdings Inc. (NASDAQ:SIRI) and Nvidia Corporation (NASDAQ:NVDA) stocks have both been winners in recent years, and are again gaining today following bullish brokerage attention. Below we'll take a closer look at shares of SIRI and NVDA after the analyst notes.

Deutsche Bullish On SIRI Stock

Shares of Sirius XM are trading up 1.8% at $5.57, after Deutsche Bank upgraded the stock to "buy" from "hold" and lifted its price target to $6.50 from $5.25. SIRI hasn't traded above $6 since 2006, but it's been trending higher in recent years, including a 19% rally over the past 12 months. More recently, the security's been consolidating above its 200-day moving average.

Short interest is sill elevated, though it's been edging lower in recent reporting periods. As of now, more than 16% of the float is dedicated to short interest -- which equates to more than two weeks' worth of buying power, going by average daily trading volumes. A continuation of this short-covering trend could help keep Sirius XM moving higher on the charts.

Plus, it's worth noting this may not be the last bull note we see for SIRI, since the majority of analysts in coverage still have "hold" or "strong sell" ratings in place. The average 12-month price target of $5.85 doesn't price in much upside, either.

BAML Sees More Upside For NVDA Stock

Meanwhile, shares of Nvidia are trading up 1.8% at a new record high of $228.50, thanks to a price-target hike at BofA-Merrill Lynch to $275 from $251 -- representing upside of over 20% from current levels. The stock had already more than doubled in the past year. 

Options data suggests traders have been betting on more upside. This is according to the 10-day call/put volume ratio of 1.63 from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks in the top quartile of the annual range. Said simply, call buying has been unusually popular in recent weeks.

Bernie Schaeffer's
CHART OF THE WEEK

Catch up with Bernie and his unique insights on a stock, sector, index, or indicator that's captured his attention- Yours FREE and delivered every Sunday!


MORE | MARKETstories


Stocks Wrap Up Best Week in Years
The Dow pared its gains after the U.S. indictment of Russian nationals
Home Depot Stock Call Volume Spikes Ahead of Earnings
The retailer will report earnings ahead of Tuesday's open
VIX Sinks as Stocks Stage Best Comeback in Years
The market's "fear gauge" is on track for its biggest weekly loss since November 2016
3 Drug Stocks Making Outsized Moves
Pacira Pharmaceuticals stock is near the bottom of the Nasdaq

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

TRADING SERVICES | FEATUREDproducts


By MG 2016
In March of 2016, I was introduced to Expiration Week Countdown.  The results are better than words!
Options trading made simple.
Schaeffer's Investment Research, Inc. is dedicated to providing subscribers advantages in options trading and investing.  Our independent market research services create profitable opportunities for investors at every level.