Iridium Communications Inc (NASDAQ:IRDM) Receives Consensus Recommendation of "Hold" from Brokerages

Key Points

• Brokerages have a consensus rating of "Hold" on Iridium based on seven analysts (1 sell, 2 hold, 4 buy) with an average 1‑year target price of $27.60, although recent notes diverge (Barclays raised its target to $36 while BWS maintains a $16 sell view).
• Iridium's latest quarter posted a modest EPS beat ($0.24 vs. $0.23) but missed revenue estimates, and the shares are trading near $41.85—close to the 12‑month high—implying a premium valuation (PE ~39.5) relative to the consensus price target.

Shares of Iridium Communications Inc (NASDAQ:IRDM - Get Free Report) have received an average rating of "Hold" from the seven analysts that are presently covering the firm, Marketbeat reports. One analyst has rated the stock with a sell recommendation, two have assigned a hold recommendation and four have issued a buy recommendation on the company. The average 1 year target price among brokers that have updated their coverage on the stock in the last year is $27.60.

Several research analysts recently commented on the stock. Barclays raised their price objective on shares of Iridium Communications from $25.00 to $36.00 and gave the stock an "overweight" rating in a report on Thursday, April 9th. BWS Financial reiterated a "sell" rating and issued a $16.00 target price on shares of Iridium Communications in a research note on Wednesday, April 15th. Morgan Stanley increased their target price on shares of Iridium Communications from $24.00 to $26.00 and gave the stock an "equal weight" rating in a research note on Wednesday, February 18th. Finally, Weiss Ratings upgraded shares of Iridium Communications from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Tuesday, March 10th.

Insider Transactions at Iridium Communications

In other Iridium Communications news, CAO Timothy Kapalka sold 2,043 shares of the stock in a transaction that occurred on Monday, April 6th. The shares were sold at an average price of $33.00, for a total value of $67,419.00. Following the sale, the chief accounting officer directly owned 45,721 shares in the company, valued at $1,508,793. This represents a 4.28% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.70% of the stock is owned by corporate insiders.

Institutional Trading of Iridium Communications

Several institutional investors and hedge funds have recently bought and sold shares of the company. Krilogy Financial LLC purchased a new stake in Iridium Communications in the 1st quarter worth approximately $266,000. Values First Advisors Inc. purchased a new stake in Iridium Communications in the 1st quarter worth approximately $286,000. Hsbc Holdings PLC lifted its stake in Iridium Communications by 63.7% in the 4th quarter. Hsbc Holdings PLC now owns 44,358 shares of the technology company's stock worth $772,000 after purchasing an additional 17,267 shares in the last quarter. Invesco Ltd. lifted its stake in Iridium Communications by 12.0% in the 4th quarter. Invesco Ltd. now owns 994,205 shares of the technology company's stock worth $17,279,000 after purchasing an additional 106,856 shares in the last quarter. Finally, Mercer Global Advisors Inc. ADV purchased a new stake in Iridium Communications in the 4th quarter worth approximately $193,000. 84.36% of the stock is currently owned by hedge funds and other institutional investors.

Iridium Communications Price Performance

IRDM opened at $41.85 on Monday. The company has a 50 day moving average of $27.27 and a 200 day moving average of $21.40. The company has a market cap of $4.42 billion, a PE ratio of 39.48, a price-to-earnings-growth ratio of 2.83 and a beta of 0.48. Iridium Communications has a 12 month low of $15.65 and a 12 month high of $44.36. The company has a current ratio of 2.48, a quick ratio of 1.82 and a debt-to-equity ratio of 3.80.

Iridium Communications (NASDAQ:IRDM - Get Free Report) last released its quarterly earnings data on Thursday, February 12th. The technology company reported $0.24 EPS for the quarter, topping the consensus estimate of $0.23 by $0.01. The company had revenue of $212.94 million during the quarter, compared to the consensus estimate of $219.14 million. Iridium Communications had a net margin of 13.12% and a return on equity of 24.01%. Iridium Communications's revenue for the quarter was up .0% on a year-over-year basis. During the same period last year, the firm earned $0.32 EPS. On average, sell-side analysts expect that Iridium Communications will post 0.89 EPS for the current year.

Iridium Communications Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Monday, March 16th were paid a $0.15 dividend. The ex-dividend date was Monday, March 16th. This represents a $0.60 annualized dividend and a yield of 1.4%. Iridium Communications's dividend payout ratio is currently 56.60%.

About Iridium Communications

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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