Sirius Moves Higher on Induction to Nasdaq-100
Stock of Sirius-XM Radio (NASDAQ:SIRI) jumped as high as $2.35 this morning, now $2.24 (up .77%) on news that the company will return to the Nasdaq-100 index (NASDAQ:QQQ) today. Sirius had previously been a part of the 100 company list in 2004, but was pulled from the index in 2007, precipitating a steep decline in share price that saw the satellite radio leader nearly become a penny stock. Ever volatile, SIRI still has a 52 week high-low range of $.91-2.51 per share. The stock trades on a P/E of 697.82 with a total market cap. at $8.84B. The company will replace pharmaceutical developer Cephalon Inc. (NASDAQ:CEPH) on the listing, as it prepares for a merger with Israeli pharma leader Teva (NASDAQ:TEVA).
Sirius’ return to the Nasdaq-100 bodes well for the company’s stock price, as it will likely reduce the risk of the company’s return to penny stock pricing. The move may also help related radio companies, such as recent IPO debutante Pandora (NYSE:P), secure increased confidence from investors. The leader in Internet Radio has seen a mixed first month on public markets, with high-low of $26.00-12.16. Pandora will host its first analyst day tomorrow, July 12th, with a slew of big name banks and securities analysts expected to initiate coverage on the stock. P is down -1.71% in trading today.
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