Iridium Communications Inc (NASDAQ:IRDM) to Issue Dividend Increase - $0.15 Per Share

Key Points

• Iridium Communications Inc has increased its quarterly dividend by 7.1% to $0.15 per share, with the annualized dividend amounting to $0.60 and a yield of 2.33%.
• The company reported $0.20 earnings per share (EPS) for the last quarter, which was below the consensus estimate of $0.23, while its revenue was $216.91 million, surpassing expectations.
• Analysts have mixed ratings on Iridium stock, with a consensus rating of "Moderate Buy" and a current average target price of $35.20.

Iridium Communications Inc (NASDAQ:IRDM - Get Free Report) declared a quarterly dividend on Friday, July 25th, Wall Street Journal reports. Stockholders of record on Monday, September 15th will be paid a dividend of 0.15 per share by the technology company on Tuesday, September 30th. This represents a $0.60 annualized dividend and a dividend yield of 2.44%. The ex-dividend date is Monday, September 15th. This is a 7.1% increase from Iridium Communications's previous quarterly dividend of $0.14.

Iridium Communications has a dividend payout ratio of 42.1% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Iridium Communications to earn $1.24 per share next year, which means the company should continue to be able to cover its $0.56 annual dividend with an expected future payout ratio of 45.2%.

Iridium Communications Trading Down 3.6%

Shares of IRDM stock traded down $0.93 during trading on Tuesday, hitting $24.61. 1,969,759 shares of the stock traded hands, compared to its average volume of 1,904,825. The firm has a market capitalization of $2.61 billion, a P/E ratio of 24.86, a price-to-earnings-growth ratio of 0.89 and a beta of 0.79. The company has a debt-to-equity ratio of 3.82, a current ratio of 2.51 and a quick ratio of 1.75. The firm's fifty day moving average price is $28.86 and its 200-day moving average price is $27.93. Iridium Communications 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 EPS for the quarter, missing the consensus estimate of $0.23 by ($0.03). The firm had revenue of $216.91 million for the quarter, compared to analysts' expectations of $214.73 million. Iridium Communications had a net margin of 13.20% and a return on equity of 20.28%. The firm's quarterly revenue was up 7.9% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.27 EPS. As a group, research analysts forecast that Iridium Communications will post 0.89 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

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

Hedge Funds Weigh In On Iridium Communications

Several large investors have recently bought and sold shares of the stock. United Services Automobile Association acquired a new position in Iridium Communications in the first quarter valued at $218,000. Royal Bank of Canada raised its holdings in shares of Iridium Communications by 33.0% in the first quarter. Royal Bank of Canada now owns 48,325 shares of the technology company's stock valued at $1,320,000 after buying an additional 11,985 shares during the last quarter. Goldman Sachs Group Inc. raised its holdings in shares of Iridium Communications by 16.7% in the first quarter. Goldman Sachs Group Inc. now owns 232,231 shares of the technology company's stock valued at $6,345,000 after buying an additional 33,191 shares during the last quarter. Amundi raised its holdings in shares of Iridium Communications by 1,243.0% in the first quarter. Amundi now owns 40,479 shares of the technology company's stock valued at $1,035,000 after buying an additional 37,465 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in Iridium Communications by 16.2% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 539,566 shares of the technology company's stock worth $14,741,000 after purchasing an additional 75,060 shares in the last quarter. Institutional investors and hedge funds own 84.36% of the company's stock.

Iridium Communications Company 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.