ARK Investment Management LLC Raises Holdings in Iridium Communications Inc (NASDAQ:IRDM)

Key Points

• ARK Investment Management LLC increased its position in Iridium Communications by 95.1%, acquiring over 2.3 million additional shares in the first quarter, making it the 22nd largest position in their portfolio.
• Iridium Communications announced a quarterly dividend of $0.15 per share, an increase from the previous $0.14, with a 2.34% dividend yield.
• The company reported a 7.9% year-over-year increase in revenue, despite missing earnings expectations slightly, with EPS of $0.20 compared to an estimated $0.23.

ARK Investment Management LLC increased its stake in shares of Iridium Communications Inc (NASDAQ:IRDM - Free Report) by 95.1% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 4,891,677 shares of the technology company's stock after buying an additional 2,383,962 shares during the quarter. Iridium Communications accounts for 1.3% of ARK Investment Management LLC's investment portfolio, making the stock its 22nd largest holding. ARK Investment Management LLC owned 4.52% of Iridium Communications worth $133,641,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors have also bought and sold shares of the company. SBI Securities Co. Ltd. lifted its position in shares of Iridium Communications by 37.2% during the 1st quarter. SBI Securities Co. Ltd. now owns 1,757 shares of the technology company's stock valued at $48,000 after buying an additional 476 shares during the last quarter. Pinnacle Holdings LLC raised its holdings in shares of Iridium Communications by 45.4% in the 4th quarter. Pinnacle Holdings LLC now owns 1,528 shares of the technology company's stock valued at $44,000 after acquiring an additional 477 shares in the last quarter. IFM Investors Pty Ltd raised its holdings in shares of Iridium Communications by 3.7% in the 1st quarter. IFM Investors Pty Ltd now owns 13,402 shares of the technology company's stock valued at $366,000 after acquiring an additional 480 shares in the last quarter. GAMMA Investing LLC raised its holdings in shares of Iridium Communications by 14.1% in the 1st quarter. GAMMA Investing LLC now owns 3,961 shares of the technology company's stock valued at $108,000 after acquiring an additional 488 shares in the last quarter. Finally, Two Sigma Advisers LP increased its position in shares of Iridium Communications by 6.6% during the 4th quarter. Two Sigma Advisers LP now owns 8,100 shares of the technology company's stock valued at $235,000 after purchasing an additional 500 shares during the last quarter. Institutional investors own 84.36% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on the company. Oppenheimer began coverage on Iridium Communications in a research note on Monday, May 5th. They issued an "outperform" rating and a $34.00 price target on the stock. William Blair upgraded Iridium Communications from a "market perform" rating to an "outperform" rating in a research report on Tuesday, April 22nd. Wall Street Zen downgraded Iridium Communications from a "buy" rating to a "hold" rating in a report on Thursday, May 1st. Barclays lowered their price target on Iridium Communications from $38.00 to $31.00 and set an "overweight" rating on the stock in a report on Monday. Finally, BWS Financial reduced their price objective on Iridium Communications from $30.00 to $25.00 and set a "neutral" rating for the company in a research report on Wednesday, April 23rd. Two investment analysts have rated the stock with a hold rating, four have issued a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $33.80.

Iridium Communications Stock Up 1.7%

Shares of NASDAQ:IRDM traded up $0.42 on Wednesday, reaching $25.03. The company had a trading volume of 656,319 shares, compared to its average volume of 1,384,465. Iridium Communications Inc has a 52-week low of $19.91 and a 52-week high of $35.85. The firm's 50 day simple moving average is $28.86 and its 200-day simple moving average is $27.93. The firm has a market capitalization of $2.66 billion, a PE ratio of 25.29, a PEG ratio of 0.89 and a beta of 0.79. The company has a current ratio of 2.51, a quick ratio of 1.75 and a debt-to-equity ratio of 3.82.

Iridium Communications (NASDAQ:IRDM - Get Free Report) last announced its earnings results on Thursday, July 24th. The technology company reported $0.20 earnings per share for the quarter, missing the consensus estimate of $0.23 by ($0.03). Iridium Communications had a return on equity of 20.28% and a net margin of 13.20%. The business had revenue of $216.91 million for the quarter, compared to analysts' expectations of $214.73 million. During the same quarter last year, the firm earned $0.27 earnings per share. The firm's quarterly revenue was up 7.9% compared to the same quarter last year. As a group, analysts expect that Iridium Communications Inc will post 0.89 earnings per share for the current fiscal year.

Iridium Communications Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 30th. Stockholders of record on Monday, September 15th will be issued a $0.15 dividend. This represents a $0.60 annualized dividend and a dividend yield of 2.40%. The ex-dividend date of this dividend is Monday, September 15th. This is a boost from Iridium Communications's previous quarterly dividend of $0.14. Iridium Communications's payout ratio is 56.57%.

Iridium Communications Profile

Iridium Communications Inc provides mobile voice and data communications services and products to businesses, the United States and international governments, non-governmental organizations, and consumers worldwide. The company offers postpaid mobile voice and data satellite communications; prepaid mobile voice satellite communications; push-to-talk; broadband data; and Internet of Things (IoT) services.