Billionaires Warren Buffett, Israel Englander, and Steven Cohen Are Piling Into Wall Street's Most Popular Reverse Stock Split of 2025

Sirius XM (SIRI) recently executed a unique 1-for-10 reverse stock split, following a merger, designed to elevate its share price to attract institutional investors rather than to avoid delisting. This strategic move has drawn significant interest from prominent billionaire money managers, including Warren Buffett, Israel Englander, and Steven Cohen, who are building stakes in the company. Their investment is reportedly driven by SIRI's competitive advantages as the sole licensed satellite radio operator, its stable subscription-driven revenue model (77% of net revenue), predictable cost structure, aggressive capital return program featuring a 4.1% dividend yield, and a historically cheap valuation at approximately 8.5 times forward earnings.

Analysis

Sirius XM (SIRI) completed a 1-for-10 reverse stock split after September 9, 2023, following its merger with Liberty Media's tracking stock. This unique split aimed to elevate the share price from low single digits to the mid-$20s, specifically to attract institutional investors who often bypass stocks trading below $5.

This strategic action has notably drawn significant interest from prominent billionaire money managers, including Warren Buffett, Israel Englander, and Steven Cohen. Their firms, Berkshire Hathaway, Millennium Management, and Point72 Asset Management, have accumulated substantial positions, signaling strong institutional confidence.

Investor interest is underpinned by SIRI's robust fundamentals: its unique position as the sole licensed satellite radio operator provides pricing power, and its predominantly subscription-driven revenue model (77% of net revenue) ensures consistent cash flow. The company also boasts a predictable cost structure and an aggressive capital return program, including a 4.1% dividend yield.

SIRI's valuation appears historically inexpensive, trading at approximately 8.5 times forward-year earnings, near its 30-year all-time low. This confluence of strategic corporate action, strong competitive advantages, stable financial model, and attractive valuation presents a compelling investment case.

Key Decisions for Investors

• Investors should consider evaluating a long position in Sirius XM (SIRI), given its strategic reverse stock split has successfully attracted prominent institutional investors like Warren Buffett.
• Monitor SIRI's sustained subscription revenue growth and operating cash flow consistency, which are key competitive advantages highlighted by its 77% subscription-based net revenue.
• Assess the durability of SIRI's aggressive capital return program, including its 4.1% dividend yield, alongside its historically inexpensive valuation of approximately 8.5 times forward earnings.