Sirius XM shares rise, trade heavily ahead of autos data
NEW YORK (Reuters) - Sirius XM Radio (SIRI.O) shares were the most heavily traded stock by volume on the Nasdaq on Monday, rising nearly 3.8 percent ahead of Tuesday's auto sales data that could give a boost to the company that relies on new car sales for its subscriber growth.
"The rise could be due to anticipation of the release of December auto sales," said Gabelli & Co analyst Brett Harriss.
Shares closed at $1.69 on the Nasdaq.
Sirius could not be reached immediately for comment.
Harriss said he expects Sirius XM shares to move on Tuesday, when major automakers report December sales in the United States.
Economists surveyed by Thomson Reuters forecast December auto sales of about 12.3 million on an annualized basis.
"What's still going to drive (Sirius XM) stock will be good car sales," said Maxim Group analyst John Tinker.
Much of Sirius XM's subscriber growth comes from buyers of new cars that have the radios installed. Nearly half of the trial customers become full-paying subscribers after their promotions end.
Sirius XM said on Monday it had struck a multi-year deal to carry broadcasts of Manchester United Football Club soccer games, which includes online streaming rights.
(Reporting by Liana B. Baker; editing by Carol Bishopric)