Recently, Warren Buffett’s Berkshire Hathaway and Ken Griffin’s Citadel have boosted their investments in Sirius XM and Ulta Beauty. In the second quarter, Buffett acquired 15.43 million shares of Sirius XM, raising Berkshire’s overall ownership to over 101.38 million shares, which are currently valued at $2.87 billion. In comparison, Griffin holds a smaller position in Sirius XM with approximately 5.1 million shares, estimated to be worth around $144 million.
Sirius XM, known for being a prominent satellite radio and online streaming operator, has successfully completed its merger with Liberty Media’s Sirius XM tracking stock. The firm has reaffirmed its projections for revenue and adjusted EBITDA this year, setting expectations at $8.75 billion and $2.7 billion, respectively, while free cash flow is forecasted to reach $1.0 billion.
Investments by Buffett and Griffin in Sirius XM
David Joyce from Seaport Global anticipates that the merger will boost trading liquidity and clarify the company’s narrative, potentially expanding the shareholder demographic as well as enhancing sentiment and valuation. Joyce has rated Sirius XM shares as a Buy, assigning a price target of $37, which suggests a 31% upside. Furthermore, Ulta Beauty, a U.S.-based retailer that provides a diverse assortment of beauty products and salon services, has also caught the eyes of Buffett and Griffin.
Buffett initiated a fresh investment of 690,106 shares valued close to $257 million, whereas Griffin escalated his stake by 267% to 131,713 shares, valued at approximately $49.2 million. Although Ulta Beauty has recently reported revenue and EPS disappointments, Anthony Chukumba from Loop Capital feels confident that the company is resilient enough to navigate the present challenges. The interest from Buffett and Griffin in Sirius XM and Ulta Beauty has garnered attention, as these two prominent investors, despite their differing investment approaches, have aligned in their choice of these specific stocks.
