Penn Davis McFarland Dumps 498,000 SiriusXM Shares
Key Points
Reduced Sirius XM Holdings stake by 498,032 shares; estimated trade value ~$10.71 million based on average closing prices for the quarter.
Quarter-end position value decreased by $12.04 million, reflecting both share sale and stock price movement.
Transaction represented a 1.03% decrease in reported 13F assets under management (AUM).
Post-trade, the fund held 136,262 shares valued at $2.72 million.
The position now represents 0.26% of AUM, placing it outside the fund’s top five holdings
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Penn Davis McFarland disclosed in a January 16, 2026, SEC filing that it sold 498,032 shares of Sirius XM Holdings (NASDAQ:SIRI), an estimated $10.71 million trade based on quarterly average pricing.
What happened
According to a SEC filing dated January 16, 2026, Penn Davis McFarland sold 498,032 shares of Sirius XM Holdings (NASDAQ:SIRI) during the fourth quarter of 2025. The estimated transaction value was $10.71 million, calculated using the period’s average closing price. The quarter-end value of the fund’s Sirius XM Holdings position declined by $12.04 million, a figure that includes the effects of both the share sale and stock price changes over the period.
What else to know
- Penn Davis McFarland’s Sirius XM Holdings holding now accounts for 0.26% of its 13F AUM, following a reduction from the prior quarter’s 1.5% allocation.
- Top holdings after the filing:
- NASDAQ: GOOGL: $198.71 million (19.5% of AUM)
- NASDAQ: NVDA: $93.26 million (9.1% of AUM)
- NASDAQ: AAPL: $49.45 million (4.8% of AUM)
- NYSE: MI: $47.43 million (4.5% of AUM)
- NYSE: UNH: $45.34 million (4.3% of AUM)
- As of January 15, 2026, Sirius XM Holdings shares were priced at $20.91, down 59.87% over the past year, underperforming the S&P 500 by 76.7 percentage points.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $8.55 billion |
| Net Income (TTM) | $993.00 million |
| Dividend Yield | 5.29% |
| Price (as of market close January 15, 2026) | $20.91 |
Company snapshot
- Offers satellite radio, streaming audio, podcasts, and related data services, with content spanning music, sports, news, talk, and entertainment.
- Generates revenue primarily through subscription fees, complemented by income from connected vehicle services.
- Targets individual consumers, automotive partners, and commercial clients across the United States seeking premium audio content and connected vehicle solutions.
Sirius XM Holdings is a leading provider of subscription-based satellite radio and streaming audio services in the United States, serving over five thousand employees and a broad customer base. The company leverages exclusive content, technology integration in vehicles, and a diversified audio platform to maintain a competitive position in the entertainment sector. Its strategy centers on expanding digital offerings and enhancing user engagement through innovative products and partnerships.
What this transaction means for investors
SEC filings do not typically reveal why a fund sold a specific stock. However, in the case of Penn Davis McFarland, they likely unloaded most of their shares because of the massive decline in the stock price over the last year.
The stock offers a 5.3% dividend yield and sells at a P/E ratio of around 7.5. Nonetheless, such attributes may not justify staying in a stock when it seems to be in freefall.
While the earnings multiple may indicate the stock is oversold, the company has steadily lost subscribers. Moreover, its satellite radio monopoly in the U.S. is relatively meaningless when users can stream media from their smartphones.
Additionally, it was never a major position in the fund. Today, it is around 0.3% of Penn Davis McFarland’s holdings, and even before the sale, it made up just 1.5% of the fund. Fortunately, that blunts the impact of the decline in SiriusXM stock, allowing the overall fund to make gains during the quarter despite SiriusXM’s performance.
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Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, Kinder Morgan, and Nvidia. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy.
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