Iridium Communications (NASDAQ:IRDM) Posts Earnings Results, Beats Estimates By $0.09 EPS

Key Points

• Iridium Communications reported a quarterly EPS of $0.35, exceeding the consensus estimate of $0.26 by $0.09, with a year-over-year revenue increase of 6.6%.
• The company's shares traded down to $18.88, while analysts have been adjusting their ratings, with Barclays lowering its price target from $31.00 to $25.00.
• Currently, 84.36% of Iridium's stock is held by hedge funds and institutional investors, reflecting strong institutional interest in the company.

Iridium Communications (NASDAQ:IRDM - Get Free Report) announced its quarterly earnings results on Thursday. The technology company reported $0.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.26 by $0.09, Zacks reports. Iridium Communications had a net margin of 13.20% and a return on equity of 20.28%. During the same quarter in the prior year, the company posted $0.21 earnings per share. The firm's revenue was up 6.6% on a year-over-year basis.

Iridium Communications Stock Performance

Shares of NASDAQ:IRDM traded down $0.78 during midday trading on Thursday, reaching $18.88. The company had a trading volume of 2,805,115 shares, compared to its average volume of 1,767,825. The company's 50 day moving average price is $20.67 and its 200 day moving average price is $24.65. The company has a current ratio of 2.51, a quick ratio of 1.75 and a debt-to-equity ratio of 3.82. The stock has a market cap of $2.00 billion, a P/E ratio of 19.01, a P/E/G ratio of 0.69 and a beta of 0.70. Iridium Communications has a 52-week low of $17.08 and a 52-week high of $34.45.

Analyst Ratings Changes

IRDM has been the subject of several analyst reports. Barclays lowered their price target on shares of Iridium Communications from $31.00 to $25.00 and set an "overweight" rating for the company in a research report on Wednesday, October 1st. Raymond James Financial downgraded shares of Iridium Communications from a "strong-buy" rating to an "outperform" rating and lowered their target price for the stock from $39.00 to $26.00 in a report on Thursday, September 11th. BWS Financial downgraded shares of Iridium Communications from a "neutral" rating to a "sell" rating and reduced their price objective for the stock from $25.00 to $16.00 in a research note on Tuesday, September 9th. Weiss Ratings reiterated a "hold (c-)" rating on shares of Iridium Communications in a research report on Wednesday, October 8th. Finally, Morgan Stanley lowered their price objective on shares of Iridium Communications from $40.00 to $37.00 and set an "overweight" rating for the company in a research note on Friday, August 1st. Six equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, Iridium Communications presently has a consensus rating of "Moderate Buy" and an average price target of $29.67.

Hedge Funds Weigh In On Iridium Communications

A number of hedge funds and other institutional investors have recently made changes to their positions in IRDM. Royal Bank of Canada boosted its holdings in shares of Iridium Communications by 33.0% in the 1st quarter. Royal Bank of Canada now owns 48,325 shares of the technology company's stock worth $1,320,000 after buying an additional 11,985 shares during the last quarter. Amundi lifted its holdings in Iridium Communications by 1,243.0% during the first quarter. Amundi now owns 40,479 shares of the technology company's stock valued at $1,035,000 after purchasing an additional 37,465 shares during the last quarter. Goldman Sachs Group Inc. lifted its holdings in Iridium Communications by 16.7% during the first quarter. Goldman Sachs Group Inc. now owns 232,231 shares of the technology company's stock valued at $6,345,000 after purchasing an additional 33,191 shares during the last quarter. United Services Automobile Association purchased a new stake in Iridium Communications during the first quarter valued at about $218,000. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of 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 valued at $14,741,000 after buying an additional 75,060 shares during the period. 84.36% of the stock is owned by hedge funds and other institutional investors.

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.

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