Hsbc Holdings PLC Has $3.55 Million Holdings in Iridium Communications Inc $IRDM

Key Points

• Hsbc Holdings PLC reduced its stake in Iridium Communications Inc by 31.0%, leaving it with approximately $3.55 million in stock holdings.
• Iridium Communications recently increased its quarterly dividend from $0.14 to $0.15 per share, representing a 2.4% dividend yield.
• Wall Street analysts have mixed outlooks for Iridium Communications, with target price reductions from firms such as Morgan Stanley and Raymond James, while maintaining ratings from "buy" to "overweight."

Hsbc Holdings PLC lessened its position in Iridium Communications Inc (NASDAQ:IRDM - Free Report) by 31.0% in the 1st quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 130,405 shares of the technology company's stock after selling 58,692 shares during the quarter. Hsbc Holdings PLC owned approximately 0.12% of Iridium Communications worth $3,554,000 as of its most recent filing with the SEC.

Several other hedge funds have also made changes to their positions in the company. ARK Investment Management LLC lifted its position in shares of Iridium Communications by 95.1% in the 1st quarter. ARK Investment Management LLC now owns 4,891,677 shares of the technology company's stock valued at $133,641,000 after acquiring an additional 2,383,962 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. lifted its position in Iridium Communications by 37.6% in the 1st quarter. Sumitomo Mitsui Trust Group Inc. now owns 3,893,145 shares of the technology company's stock worth $106,361,000 after buying an additional 1,064,093 shares in the last quarter. Nikko Asset Management Americas Inc. lifted its position in Iridium Communications by 37.5% in the 1st quarter. Nikko Asset Management Americas Inc. now owns 3,889,045 shares of the technology company's stock worth $106,210,000 after buying an additional 1,061,465 shares in the last quarter. American Century Companies Inc. lifted its position in Iridium Communications by 26.6% in the 1st quarter. American Century Companies Inc. now owns 2,198,343 shares of the technology company's stock worth $60,059,000 after buying an additional 462,501 shares in the last quarter. Finally, ArrowMark Colorado Holdings LLC lifted its position in Iridium Communications by 37.3% in the 4th quarter. ArrowMark Colorado Holdings LLC now owns 2,088,053 shares of the technology company's stock worth $60,595,000 after buying an additional 567,164 shares in the last quarter. Hedge funds and other institutional investors own 84.36% of the company's stock.

Iridium Communications Stock Up 1.1%

Shares of Iridium Communications stock traded up $0.28 during midday trading on Monday, reaching $24.89. 2,073,476 shares of the company's stock traded hands, compared to its average volume of 1,523,532. The company has a market cap of $2.64 billion, a price-to-earnings ratio of 25.14, a price-to-earnings-growth ratio of 0.91 and a beta of 0.78. The company's 50 day simple moving average is $27.62 and its 200 day simple moving average is $27.23. The company has a debt-to-equity ratio of 3.82, a quick ratio of 1.75 and a current ratio of 2.51. Iridium Communications Inc has a 52 week low of $19.91 and a 52 week high of $35.85.

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

Iridium Communications Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 30th. Investors of record on Monday, September 15th will be paid a $0.15 dividend. This represents a $0.60 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date is Monday, September 15th. This is a boost from Iridium Communications's previous quarterly dividend of $0.14. Iridium Communications's dividend payout ratio (DPR) is 56.57%.

Wall Street Analysts Forecast Growth

IRDM has been the subject of a number of research analyst reports. Oppenheimer initiated coverage on shares of Iridium Communications in a research report on Monday, May 5th. They issued an "outperform" rating and a $34.00 target price for the company. Morgan Stanley cut their target price on shares of Iridium Communications from $40.00 to $37.00 and set an "overweight" rating for the company in a research report on Friday, August 1st. Barclays cut their target price on shares of Iridium Communications from $38.00 to $31.00 and set an "overweight" rating for the company in a research report on Monday, July 28th. Finally, Raymond James Financial reiterated a "strong-buy" rating and issued a $39.00 target price (down previously from $47.00) on shares of Iridium Communications in a research report on Friday, July 25th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat, the stock has an average rating of "Buy" and a consensus target price of $34.33.

About Iridium Communications

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.