Warren Buffett’s Berkshire Hathaway and Ken Griffin’s Citadel have recently increased their stakes in Sirius XM and Ulta Beauty. Buffett added 15.43 million shares of Sirius XM in Q2, bringing Berkshire’s total holdings to over 101.38 million shares worth $2.87 billion. Griffin’s stake in Sirius XM is more modest at around 5.1 million shares valued at approximately $144 million.
Sirius XM, a leading satellite radio and online streaming provider, recently finalized its merger with Liberty Media’s Sirius XM tracking stock. The company reiterated its revenue and adjusted EBITDA outlook for the year at $8.75 billion and $2.7 billion, respectively, with free cash flow expected to reach $1.0 billion.
Buffett and Griffin’s Sirius XM stakes
Seaport Global’s David Joyce believes the merger will enhance trading liquidity and simplify the company’s story, potentially broadening the shareholder base and improving sentiment and valuation. Joyce rates Sirius XM shares as a Buy with a $37 price target, implying a 31% upside potential. Ulta Beauty, a U.S. retailer offering a wide range of beauty products and salon services, has also attracted the attention of Buffett and Griffin.
Buffett opened a new position with 690,106 shares worth nearly $257 million, while Griffin increased his holdings by 267% to 131,713 shares valued at approximately $49.2 million. Despite Ulta Beauty’s recent revenue and EPS misses, Loop Capital’s Anthony Chukumba believes the company is strong enough to withstand the current headwinds. The investments by Buffett and Griffin in Sirius XM and Ulta Beauty have sparked interest in these companies, as the two renowned investors have different strategies but have converged on these particular stocks.
