SiriusXM Stock Is Down 14% in One Year, and One Fund Just Cut Its Stake By $3 Million

On February 2, Capital Management Corp disclosed selling 147,767 shares of Sirius XM Holdings (NASDAQ:SIRI) in the fourth quarter, an estimated $3.18 million trade based on quarterly average pricing.

What happened

According to its SEC filing dated February 2, Capital Management Corp sold 147,767 shares of Sirius XM Holdings during the fourth quarter. The estimated value of the trade was $3.18 million, based on the mean closing price for the period. The fund ended the quarter with 513,699 shares in the company worth $10.27 million at quarter-end.

What else to know

After the reduction, the Sirius XM position represents 1.68% of the fund’s reportable U.S. equity assets.

Top holdings after the filing:

• NASDAQ: IDCC: $37.12 million (6.1% of AUM)
• NYSE: PBI: $30.97 million (5.1% of AUM)
• NYSE: GTN: $29.76 million (4.9% of AUM)
• NASDAQ: NXST: $25.92 million (4.2% of AUM)
• NYSE: AEM: $22.72 million (3.7% of AUM)

As of February 2, SIRI shares were priced at $20.20, down 14% over the past year and well underperforming the S&P 500’s roughly 15% gain in the same period.

Company overview

Company snapshot

• Sirius XM Holdings offers satellite radio, streaming audio, podcasts, and connected vehicle services; generates revenue primarily through subscription fees and advertising
• The company operates a subscription-based business model, distributing content via satellite and online platforms to individual consumers and through automotive partnerships
• It targets U.S. consumers, automakers, and retail partners seeking premium audio content and in-vehicle connectivity solutions

Sirius XM Holdings is a leading provider of satellite radio and streaming audio services in the United States, leveraging a strong subscription base and diversified content portfolio. The company combines exclusive programming with broad distribution through automotive and digital channels, supporting consistent revenue generation. Its scale and integration with connected vehicles position it as a key player in the evolving entertainment and mobility ecosystem.

What this transaction means for investors

This move matters because it reflects a reassessment of durability, not just price. In a portfolio dominated by high-margin IP, broadcasters, and cash-generative media assets, trimming SiriusXM after a tough year for the stock might signal concern about its trajectory more than valuation.

SiriusXM remains profitable, but growth has grown harder to find. In the third quarter, revenue slipped 1% year over year to $2.16 billion, while adjusted EBITDA declined to $676 million, down slightly from $693 million a year earlier. Subscriber trends were mixed, with total subscribers ending the quarter at roughly 33 million, and self-pay net adds still under pressure. The bright spot was cash generation. Free cash flow surged to $257 million in the quarter, up from $93 million one year earlier and helping management raise full-year guidance to $1.23 billion.

More broadly, this fund’s top holdings lean toward businesses with clearer operating leverage and secular tailwinds. Against that backdrop, SiriusXM’s exposure to auto sales cycles, rising acquisition costs, and slower subscriber growth makes it a tougher fit. Plus, it’s important to mention that even after the trim, the position remains meaningful at 1.7% of assets, suggesting continued belief in the stock and its cash flow story.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.