LSXMB - Sirius XM dips 3% as Barclays cuts to Underweight on Liberty developments

Sirius XM Holdings (NASDAQ:SIRI) is 2.9% lower after a downgrade to Underweight at Barclays, from Equal Weight. The bank had just upgraded to Equal Weight on Sept. 28, with the focus on whether Liberty SiriusXM Group (LSXMA -3.3%) could consider Sirius XM an actively traded business for tax purposes. "Our understanding was that the ownership accretion after Liberty crossed the 50% mark that came about from SIRI buyback activity created de facto gain transactions, which would be disallowed under the tax code in counting toward the 5-year controlled ownership requirement to be designated an ATB," Barclays says. Sirius XM is now an ATB, as confirmed in Liberty Media's earnings call this week - but there's "no apparent rush" to collapse the LSXMA/SIRI tracking stock structure, Barclays says, though investors thought a transaction could be announced yesterday. The bank has a price target of $6 on SIRI; the price today has

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Sirius XM dips 3% as Barclays cuts to Underweight on Liberty developments