Iridium Communications Inc (NASDAQ:IRDM) Stock Has Consensus Target Price of $41.20 According to Brokerages

Key Points

• Analysts covering Iridium Communications give the stock a consensus “Hold” rating, with three buys, four holds and one sell; their average 1-year price target is $41.20.
• Quarterly results beat expectations: Iridium reported $0.98 earnings per share versus $0.34 expected, and revenue of $245.73 million versus a $236.30 million consensus estimate.
• The company’s quarterly dividend of $0.15 per share equates to $0.60 annually and a 1.4% yield. Insiders sold a combined 381,688 shares worth about $19.1 million over the past three months.

Shares of Iridium Communications Inc (NASDAQ:IRDM - Get Free Report) have been given a consensus recommendation of "Hold" by the eight brokerages that are presently covering the company, MarketBeat.com reports. One equities research analyst has rated the stock with a sell rating, four have given a hold rating and three have issued a buy rating on the company. The average 1-year target price among brokerages that have covered the stock in the last year is $41.20.

Several research firms have commented on IRDM. New Street Research raised shares of Iridium Communications from a "neutral" rating to a "buy" rating in a research note on Wednesday, July 22nd. Weiss Ratings raised shares of Iridium Communications from a "hold (c)" rating to a "hold (c+)" rating in a research note on Wednesday, October 21st.

Iridium Communications Price Performance

NASDAQ:IRDM opened at $42.02 on Friday. The firm has a market capitalization of $4.46 billion, a price-to-earnings ratio of 27.83, a PEG ratio of 3.42 and a beta of 0.87. The company has a debt-to-equity ratio of 3.34, a current ratio of 0.91 and a quick ratio of 0.72. The business has a 50 day simple moving average of $46.54 and a 200-day simple moving average of $40.06. Iridium Communications has a 1 year low of $15.65 and a 1 year high of $57.18.

Iridium Communications (NASDAQ:IRDM - Get Free Report) last released its earnings results on Tuesday, October 20th. The technology company reported $0.98 earnings per share for the quarter, beating the consensus estimate of $0.34 by $0.64. Iridium Communications had a return on equity of 22.04% and a net margin of 18.06%. The firm had revenue of $245.73 million for the quarter, compared to the consensus estimate of $236.30 million. During the same quarter in the previous year, the company posted $0.35 EPS. Equities analysts forecast that Iridium Communications will post 0.98 EPS for the current year.

Iridium Communications Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th were issued a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a yield of 1.4%. The ex-dividend date was Tuesday, September 15th. Iridium Communications's dividend payout ratio is presently 39.74%.

Insider Buying and Selling

In other Iridium Communications news, CAO Timothy Kapalka sold 13,473 shares of the firm's 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 $1,804,772.81. This trade represents a 27.38% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Thomas Fitzpatrick sold 15,046 shares of the business's stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $49.20, for a total value of $740,263.20. Following the transaction, the director owned 43,260 shares of the company's stock, valued at $2,128,392. This trade represents a 25.81% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 381,688 shares of company stock worth $19,146,390 over the last three months. 2.70% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Iridium Communications

Several hedge funds have recently bought and sold shares of IRDM. Bank of America Corp DE purchased a new stake in Iridium Communications during the second quarter worth $13,446,000. Edgestream Partners L.P. purchased a new position in shares of Iridium Communications in the 1st quarter valued at $2,083,000. Hsbc Holdings PLC purchased a new position in shares of Iridium Communications in the 2nd quarter valued at $781,000. Fifth Third Bancorp increased its holdings in shares of Iridium Communications by 2,810.5% in the 1st quarter. Fifth Third Bancorp now owns 39,786 shares of the technology company's stock valued at $1,104,000 after acquiring an additional 38,419 shares during the period. Finally, Janus Henderson Group PLC raised its position in shares of Iridium Communications by 9.8% in the 1st quarter. Janus Henderson Group PLC now owns 306,684 shares of the technology company's stock worth $8,508,000 after acquiring an additional 27,325 shares in the last quarter. Institutional investors own 84.36% of the company's stock.

Iridium Communications Company Profile

Iridium Communications Inc provides global satellite communications services through the Iridium satellite network. The company offers voice and data connectivity for customers in remote and difficult-to-reach locations, supporting applications in maritime, aviation, government, emergency services, transportation, industrial, and recreational markets.

Its product portfolio includes satellite phones, broadband services, specialized voice and data terminals, and Internet of Things connectivity for tracking, monitoring, and machine-to-machine communications.

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