Sirius XM Radio Inc(NASDAQ:SIRI) Under Pressure After Mel Karmazin’s Sale

Shares of Sirius XM Radio Inc(NASDAQ:SIRI) extended its fall was recently trading lower by 1.79% to $2.23 on over 18.89 million shares, compared to its average volume of 48.86 million shares.Mel Karmazin, CEO and director of the company, sold over 11 million shares on the open market on Monday and Tuesday earlier this week at an average price of $2.20 for proceeds totaling over $25 million. Mel has 49 million shares of options remaining to exercise and then sell.

The company is scheduled to report its quarterly earnings on May 1, 2012. Analysts are estimating the company to report 2 cents a share, compared to a year ago profit of a penny. Revenue is expected to grow by 10.90% to $803 million, from a year ago revenue of $723.84 million. The company had beaten analysts estimates in the all the past four quarters.

The stock fell about 3% on Monday after a judge tossed out "shock jock" Howard Stern's lawsuit against the satellite radio provider. In October 2004, Sirius and Stern agreed to a performance bonus that would be triggered if the company met certain subscriber goals. In his suit, Stern had alleged that the company should include XM Satellite Radio subscribers in its consideration of these goals; Sirius acquired XM in 2008.However, in a ruling dated Monday, New York State Judge Barbara Kapnick stated that Stern's agreement does not include language about the implications of a merger, and therefore he is not owed additional compensation.

Sirius XM Radio Inc. broadcasts its music, sports, entertainment, comedy, talk, news, traffic and weather channels in the United States on a subscription fee basis through its two satellite radio systems.