Iridium Communications (NASDAQ:IRDM) Raised to Hold at New Street Research

Key Points

• New Street Research upgraded Iridium Communications to a hold rating, while the broader analyst view remains cautious with an overall Hold consensus and a $28.80 average price target.
• Iridium reported Q1 earnings of $0.20 per share, missing estimates, but revenue came in roughly in line at $219.06 million and rose 2% year over year.
• The company is moving to strengthen its aviation strategy by agreeing to buy the remaining 61% of Aireon for about $366.7 million, giving it full control of the space-based aircraft tracking platform.

Iridium Communications (NASDAQ:IRDM - Get Free Report) was upgraded by investment analysts at New Street Research to a "hold" rating in a research note issued on Wednesday,Zacks.com reports.

IRDM has been the subject of several other research reports. Morgan Stanley upped their price objective on Iridium Communications from $24.00 to $26.00 and gave the company an "equal weight" rating in a report on Wednesday, February 18th. BWS Financial restated a "sell" rating and issued a $16.00 price objective on shares of Iridium Communications in a report on Monday, April 27th. Raymond James Financial restated a "market perform" rating on shares of Iridium Communications in a report on Friday, April 24th. Weiss Ratings upgraded Iridium Communications from a "sell (d+)" rating to a "hold (c-)" rating in a report on Tuesday, March 10th. Finally, Barclays upped their price objective on Iridium Communications from $25.00 to $36.00 and gave the company an "overweight" rating in a report on Thursday, April 9th. One equities research analyst has rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Iridium Communications currently has an average rating of "Hold" and a consensus price target of $28.80.

Iridium Communications Trading Up 0.8%

Shares of Iridium Communications stock opened at $43.43 on Wednesday. The company has a quick ratio of 2.21, a current ratio of 2.85 and a debt-to-equity ratio of 3.74. The firm has a market cap of $4.59 billion, a price-to-earnings ratio of 43.87, a price-to-earnings-growth ratio of 2.94 and a beta of 0.79. The business has a fifty day simple moving average of $33.29 and a 200-day simple moving average of $23.97. Iridium Communications has a fifty-two week low of $15.65 and a fifty-two week high of $44.61.

Iridium Communications (NASDAQ:IRDM - Get Free Report) last announced its quarterly earnings data on Thursday, April 23rd. The technology company reported $0.20 earnings per share for the quarter, missing the consensus estimate of $0.27 by ($0.07). The firm had revenue of $219.06 million during the quarter, compared to analyst estimates of $218.39 million. Iridium Communications had a net margin of 12.05% and a return on equity of 22.76%. The company's quarterly revenue was up 2.0% compared to the same quarter last year. During the same quarter last year, the company earned $0.27 EPS. On average, equities analysts forecast that Iridium Communications will post 1.04 EPS for the current fiscal year.

Insider Activity

In other news, CAO Timothy Kapalka sold 2,043 shares of the business's stock in a transaction on Monday, April 6th. The stock was sold at an average price of $33.00, for a total transaction of $67,419.00. Following the sale, the chief accounting officer directly owned 45,721 shares of the company's stock, valued at $1,508,793. The trade was a 4.28% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.70% of the stock is owned by company insiders.

Institutional Investors Weigh In On Iridium Communications

Institutional investors and hedge funds have recently modified their holdings of the stock. Root Financial Partners LLC raised its position in shares of Iridium Communications by 1,750.0% during the first quarter. Root Financial Partners LLC now owns 1,332 shares of the technology company's stock worth $37,000 after purchasing an additional 1,260 shares during the period. Quadrant Capital Group LLC raised its position in shares of Iridium Communications by 107.5% during the fourth quarter. Quadrant Capital Group LLC now owns 1,430 shares of the technology company's stock worth $25,000 after purchasing an additional 741 shares during the period. Hantz Financial Services Inc. raised its position in shares of Iridium Communications by 184.7% during the third quarter. Hantz Financial Services Inc. now owns 1,506 shares of the technology company's stock worth $26,000 after purchasing an additional 977 shares during the period. Larson Financial Group LLC raised its position in shares of Iridium Communications by 392.8% during the third quarter. Larson Financial Group LLC now owns 1,508 shares of the technology company's stock worth $26,000 after purchasing an additional 1,202 shares during the period. Finally, Kestra Advisory Services LLC acquired a new position in Iridium Communications during the fourth quarter valued at $27,000. 84.36% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Iridium Communications

Here are the key news stories impacting Iridium Communications this week:

• Positive Sentiment: Iridium agreed to buy the remaining 61% of Aireon for about $366.7 million, giving it full control of the space-based aircraft tracking platform and strengthening its long-term growth strategy in aviation safety. Article: Iridium to Acquire Aireon, Advancing its Strategy to Lead the Future of Aviation Safety
• Positive Sentiment: WSJ reported that the deal could help Iridium turn Aireon into a larger commercial business, with the acquisition unifying the world’s only space-based air traffic surveillance system with Iridium’s satellite network and extending key partnerships through 2035 and beyond. Article: Iridium Bets on Air Safety in Aireon Takeover
• Neutral Sentiment: New Street Research began coverage of Iridium with a neutral rating and a $40 price target, which is below the current share price and suggests limited near-term upside. Article: Iridium Communications NASDAQ: IRDM Now Covered by Analysts at New Street Research
• Neutral Sentiment: Analysts also maintained an overall Hold consensus on the stock, indicating that while the business outlook has improved, the market still sees valuation and execution risks. Article: Iridium Communications Inc NASDAQ: IRDM Given Consensus Rating of "Hold" by Analysts

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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