Raymond James Financial Reaffirms "Strong-Buy" Rating for Iridium Communications (NASDAQ:IRDM)

Key Points

• Raymond James Financial has reiterated a "strong-buy" rating for Iridium Communications (NASDAQ: IRDM) with a new price target of $39, despite previously being $47, indicating a potential upside of 55.88% from the last close.
• Iridium Communications recently reported earnings per share (EPS) of $0.20 for the last quarter, falling short of the $0.23 analysts had expected, while revenues increased by 7.9% year-over-year.
• Institutional investors have shown significant interest in Iridium, with ARK Investment Management increasing its holdings by 95.1%, now owning nearly 4.9 million shares.
• The company's stock has fluctuated between a one-year low of $19.91 and a high of $35.85, currently trading at approximately $25.02.

Iridium Communications (NASDAQ:IRDM - Get Free Report)'s stock had its "strong-buy" rating reaffirmed by equities research analysts at Raymond James Financial in a research report issued on Friday,Benzinga reports. They currently have a $39.00 price objective on the technology company's stock, down from their prior price objective of $47.00. Raymond James Financial's price objective would indicate a potential upside of 56.80% from the stock's previous close.

A number of other analysts have also weighed in on the company. BWS Financial reduced their target price on Iridium Communications from $30.00 to $25.00 and set a "neutral" rating on the stock in a research note on Wednesday, April 23rd. Wall Street Zen lowered Iridium Communications from a "buy" rating to a "hold" rating in a research note on Thursday, May 1st. Oppenheimer started coverage on Iridium Communications in a research note on Monday, May 5th. They set an "outperform" rating and a $34.00 price target on the stock. Finally, William Blair upgraded Iridium Communications from a "market perform" rating to an "outperform" rating in a research note on Tuesday, April 22nd. Two research 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 MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $33.80.

Iridium Communications Price Performance

Shares of NASDAQ IRDM traded down $0.67 during midday trading on Friday, reaching $24.87. 1,064,895 shares of the stock traded hands, compared to its average volume of 1,383,087. 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 stock has a market capitalization of $2.69 billion, a PE ratio of 25.12, a P/E/G ratio of 0.86 and a beta of 0.79. Iridium Communications has a one year low of $19.91 and a one year high of $35.85. The company's 50 day moving average is $28.86 and its 200 day moving average is $27.93.

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

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the stock. SVB Wealth LLC purchased a new stake in shares of Iridium Communications in the first quarter valued at approximately $30,000. UMB Bank n.a. boosted its stake in Iridium Communications by 129.8% during the first quarter. UMB Bank n.a. now owns 1,379 shares of the technology company's stock worth $38,000 after buying an additional 779 shares during the last quarter. Pinnacle Holdings LLC boosted its stake in Iridium Communications by 45.4% during the fourth quarter. Pinnacle Holdings LLC now owns 1,528 shares of the technology company's stock worth $44,000 after buying an additional 477 shares during the last quarter. Cooksen Wealth LLC acquired a new position in shares of Iridium Communications in the 1st quarter valued at $47,000. Finally, SBI Securities Co. Ltd. lifted its stake in shares of Iridium Communications by 37.2% in the 1st quarter. SBI Securities Co. Ltd. now owns 1,757 shares of the technology company's stock valued at $48,000 after purchasing an additional 476 shares during the last quarter. 84.36% of the stock is owned by institutional investors and hedge funds.

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.