Most of the investors recently have been curious over the performance of Sirius XM Holdings Inc. (NASDAQ:SIRI) stock. Many experts agree that the truth about a stock is best reflected in the way it moves on the chart. For this stock, the chart has a lot to say about future performance.
How has the stock performed recently?
Sirius XM Holdings Inc. (NASDAQ:SIRI) in the last month has decreased -6.48%. Shares are now up over the past year, outperforming the broad market by -100% and underperformed a peer group of similar companies by -198%. After the latest session, which saw the stock close at a price of $5.34, SIRI sits below its 52-week high. Sirius XM Holdings Inc. (NASDAQ:SIRI) has been trading in a bullish manner, based on the relative positions of the stock’s 20 and 200 day moving averages.
Of course, these surface-level price movements don’t tell us much about the direction that SIRI may be headed in the future. Fortunately, there is way to use the speed and magnitude of these price changes to predict future performance, thanks to what are known as momentum indicators. As momentum slows, it might be a sign that a support or resistance level has been reached, and that a trend is about to reverse. Two such indicators are the RSI (Relative Strength Index) and the Stochastic %k Oscillator, which fluctuate on a scale of 0 to 100. A reading above 70 indicates that a stock is overvalued, and a reading below 30 implies that it is undervalued. The 20-day RSI for SIRI is 39.29%, which suggests that the stock is not particularly expensive or cheap, and not predisposed to a reactive price movement based on this measure. The 20-day Stochastic %k measure, which sits at 14.74%, tells a different story, and suggests that SIRI currently trades in oversold territory.
What do the trading volumes reveal?
Price isn’t the only tool analysts use to forecast future performance. Volume patterns can also reveal some important insights. If, for instance, a stock’s volumes suddenly increase by a significant amount, it’s usually a sign that the level of conviction behind the trade is high. Investors may feel very strongly about the future direction of the stock in question. Sirius XM Holdings Inc. (SIRI) average trading volume of 16,987,641 during the past month is 22.04% below its average volume over the past year, indicating that investors have been less active than usual in the stock in recent times.
What do the analysts think?
SIRI is currently undervalued by -8.56% relative to the average 1-year price target of $5.84 taken from a group of Wall Street Analysts. The average investment recommendation on a scale of 1 to 5 (1 being a strong buy, 3 a hold, and 5 a sell) is 2.40, which implies that analysts are generally neutral in their outlook for SIRI over the next year.
How risky is the stock?
When analyzing a stock’s price performance, it’s essential to take risk into account. Beta, which measures a stock’s volatility relative to the overall market, can be used to gauge the level of systematic risk associated with a particular stock.
Sirius XM Holdings Inc. (NASDAQ:SIRI) has a beta of 1.13, compared to a beta of 1 for the market, which implies that the stock’s price movements are more extreme than the market as a whole. SIRI therefore has a above average level of market risk. During the past couple of weeks, SIRI average daily volatility was 15.58%, which is 5.7 percentage points lower than the average volatility over the past 100 days.