Iridium Communications Inc (NASDAQ:IRDM) Given Consensus Recommendation of "Hold" by Brokerages

Key Points

• Analysts rate Iridium Communications “Hold” overall: Of eight analysts, four recommend holding, three recommend buying and one recommends selling. The average 12-month price target is $38.67, below the reported share price of $45.44.
• Quarterly earnings missed expectations: Iridium reported adjusted EPS of $0.09 versus the $0.28 consensus estimate, while revenue rose 3.8% year over year to $225.24 million, exceeding estimates.
• The company paid a quarterly dividend of $0.15 per share, equivalent to $0.60 annually and a 1.3% yield. Institutional investors own approximately 84.4% of the stock.

Iridium Communications Inc (NASDAQ:IRDM - Get Free Report) has been given a consensus recommendation of "Hold" by the eight ratings firms that are currently covering the firm, MarketBeat.com reports. One equities research analyst has rated the stock with a sell rating, four have issued a hold rating and three have issued a buy rating on the company. The average twelve-month price target among analysts that have issued ratings on the stock in the last year is $38.6667.

IRDM has been the topic of several research analyst reports. Raymond James Financial reissued a "market perform" rating on shares of Iridium Communications in a research report on Friday, April 24th. New Street Research raised shares of Iridium Communications from a "neutral" rating to a "buy" rating in a report on Wednesday, July 22nd. William Blair lowered shares of Iridium Communications from an "outperform" rating to a "hold" rating in a research note on Monday, June 29th. Weiss Ratings reiterated a "hold (c)" rating on shares of Iridium Communications in a research note on Friday, July 10th. Finally, Oppenheimer increased their price target on shares of Iridium Communications from $48.00 to $60.00 and gave the company an "outperform" rating in a report on Wednesday, June 3rd.

Iridium Communications Stock Down 1.1%

IRDM stock opened at $45.44 on Wednesday. Iridium Communications has a 1-year low of $15.65 and a 1-year high of $57.18. The business's 50 day simple moving average is $48.10 and its 200 day simple moving average is $35.37. The company has a current ratio of 2.78, a quick ratio of 2.31 and a debt-to-equity ratio of 3.70. The firm has a market capitalization of $4.81 billion, a PE ratio of 51.64, a PEG ratio of 3.63 and a beta of 0.87.

Iridium Communications (NASDAQ:IRDM - Get Free Report) last announced its quarterly earnings results on Wednesday, July 22nd. The technology company reported $0.09 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.28 by ($0.19). Iridium Communications had a net margin of 10.55% and a return on equity of 22.57%. The business had revenue of $225.24 million for the quarter, compared to analyst estimates of $220.32 million. During the same period in the prior year, the business earned $0.20 EPS. The company's revenue for the quarter was up 3.8% compared to the same quarter last year. As a group, research analysts anticipate that Iridium Communications will post 0.97 EPS for the current year.

Iridium Communications Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Monday, June 15th were given a $0.15 dividend. The ex-dividend date of this dividend was Monday, June 15th. This represents a $0.60 annualized dividend and a dividend yield of 1.3%. Iridium Communications's dividend payout ratio is presently 68.18%.

Hedge Funds Weigh In On Iridium Communications

A number of large investors have recently made changes to their positions in the company. Tema ETFs LLC acquired a new stake in Iridium Communications during the 2nd quarter worth approximately $16,961,000. Brave Asset Management Inc. acquired a new position in Iridium Communications in the 2nd quarter valued at $247,000. GAMMA Investing LLC grew its holdings in Iridium Communications by 19.4% in the 2nd quarter. GAMMA Investing LLC now owns 3,023 shares of the technology company's stock valued at $166,000 after buying an additional 491 shares in the last quarter. Parallel Advisors LLC increased its position in Iridium Communications by 789.1% during the 1st quarter. Parallel Advisors LLC now owns 7,042 shares of the technology company's stock worth $195,000 after buying an additional 6,250 shares during the period. Finally, NewEdge Advisors LLC increased its position in Iridium Communications by 11,143.3% during the 1st quarter. NewEdge Advisors LLC now owns 45,198 shares of the technology company's stock worth $1,254,000 after buying an additional 44,796 shares during the period. Institutional investors own 84.36% of the company's stock.

Iridium Communications Company Profile

Iridium Communications Inc operates a global satellite communications network that delivers voice and data services across land, sea and air. The company's unique architecture relies on a constellation of 66 low-Earth orbit satellites, enabling real-time connectivity in regions beyond the reach of terrestrial wireless networks. Iridium's core offerings include satellite voice and messaging services, broadband data terminals, push-to-talk (PTT) interoperability and machine-to-machine (M2M) solutions for the Internet of Things (IoT).

Iridium serves a diverse range of markets, including maritime shipping, aviation, government and defense, energy, and enterprise.

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