Iridium Communications Inc (NASDAQ:IRDM) Receives Average Rating of "Hold" from Brokerages

Key Points

• Analyst consensus is “Hold”: Of eight covering firms, four rate Iridium Communications a hold, three a buy and one a sell. The average 12-month price target is $41.20, below the reported share price of $47.28.
• Quarterly results were mixed: Iridium reported $0.09 in adjusted earnings per share, missing the $0.28 consensus estimate, while revenue of $225.24 million exceeded expectations and rose 3.8% year over year.
• Insiders sold shares while institutions held a large stake: Company insiders sold 381,688 shares worth approximately $19.1 million over the past quarter, while institutional investors and hedge funds owned 84.36% of the stock.

Shares of Iridium Communications Inc (NASDAQ:IRDM - Get Free Report) have been given an average rating of "Hold" by the eight ratings firms that are covering the firm, Marketbeat reports. One investment analyst has rated the stock with a sell recommendation, four have given a hold recommendation and three have issued a buy recommendation on the company. The average 12 month price objective among brokers that have covered the stock in the last year is $41.20.

A number of brokerages have recently issued reports on IRDM. New Street Research raised shares of Iridium Communications from a "neutral" rating to a "buy" rating in a research report on Wednesday, July 22nd. Oppenheimer increased their target price on shares of Iridium Communications from $48.00 to $60.00 and gave the company an "outperform" rating in a research report on Wednesday, June 3rd. Weiss Ratings restated a "hold (c)" rating on shares of Iridium Communications in a research note on Friday, July 10th. Morgan Stanley lifted their price target on shares of Iridium Communications from $26.00 to $54.00 and gave the stock an "equal weight" rating in a report on Tuesday, June 30th. Finally, William Blair downgraded Iridium Communications from an "outperform" rating to a "hold" rating in a research report on Monday, June 29th.

Insider Activity

In related news, EVP Timothy Last sold 19,521 shares of the company's stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $50.34, for a total transaction of $982,687.14. Following the transaction, the executive vice president directly owned 93,413 shares of the company's stock, valued at $4,702,410.42. This represents a 17.29% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CAO Timothy Kapalka sold 13,473 shares of the stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $50.51, for a total value of $680,521.23. Following the completion of the sale, the chief accounting officer owned 35,731 shares of the company's stock, valued at approximately $1,804,772.81. This trade represents a 27.38% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 381,688 shares of company stock worth $19,146,390 over the last quarter. Company insiders own 2.70% of the company's stock.

Institutional Trading of Iridium Communications

A number of institutional investors have recently bought and sold shares of IRDM. Root Financial Partners LLC increased its stake in Iridium Communications by 1,750.0% during the 1st quarter. Root Financial Partners LLC now owns 1,332 shares of the technology company's stock valued at $37,000 after purchasing an additional 1,260 shares in the last quarter. Hantz Financial Services Inc. grew its holdings in shares of Iridium Communications by 69.2% during the fourth quarter. Hantz Financial Services Inc. now owns 2,548 shares of the technology company's stock valued at $44,000 after buying an additional 1,042 shares during the last quarter. Plato Investment Management Ltd acquired a new position in shares of Iridium Communications in the 2nd quarter valued at $63,000. Essential Partners LLC increased its position in shares of Iridium Communications by 122.2% in the 1st quarter. Essential Partners LLC now owns 2,453 shares of the technology company's stock valued at $68,000 after acquiring an additional 1,349 shares during the period. Finally, Covestor Ltd raised its stake in Iridium Communications by 86.6% in the 4th quarter. Covestor Ltd now owns 5,345 shares of the technology company's stock worth $93,000 after acquiring an additional 2,481 shares during the last quarter. 84.36% of the stock is currently owned by institutional investors and hedge funds.

Iridium Communications Trading Up 0.4%

Shares of NASDAQ IRDM opened at $47.28 on Thursday. The company has a debt-to-equity ratio of 3.70, a current ratio of 2.78 and a quick ratio of 2.31. The stock has a market capitalization of $5.01 billion, a P/E ratio of 53.73, a price-to-earnings-growth ratio of 3.80 and a beta of 0.87. Iridium Communications has a 1-year low of $15.65 and a 1-year high of $57.18. The business has a fifty day moving average price of $47.81 and a 200 day moving average price of $42.22.

Iridium Communications (NASDAQ:IRDM - Get Free Report) last issued its quarterly earnings data on Wednesday, July 22nd. The technology company reported $0.09 earnings per share for the quarter, missing analysts' consensus estimates of $0.28 by ($0.19). The company had revenue of $225.24 million for the quarter, compared to the consensus estimate of $220.32 million. Iridium Communications had a net margin of 10.55% and a return on equity of 22.57%. Iridium Communications's revenue for the quarter was up 3.8% compared to the same quarter last year. During the same period in the previous year, the business earned $0.20 EPS. Equities research analysts expect that Iridium Communications will post 0.95 EPS for the current fiscal year.

Iridium Communications Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th will be paid a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a yield of 1.3%. The ex-dividend date is Tuesday, September 15th. Iridium Communications's payout ratio is 68.18%.

Iridium Communications Company Profile

Iridium Communications Inc provides global satellite-based voice and data communications services. Its network is designed to support connectivity across land, oceans, airways and polar regions, serving customers in areas where terrestrial communications infrastructure is limited or unavailable.

The company offers satellite phones, broadband and narrowband data services, push-to-talk communications, and Internet of Things connectivity. Its product portfolio includes Iridium Certus broadband services, Iridium GO! satellite Wi-Fi products, satellite phones, specialized IoT services and solutions for asset tracking, monitoring and machine-to-machine communications.

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