Iridium Communications (NASDAQ:IRDM) Shares Gap Down on Disappointing Earnings

Iridium Communications Inc (NASDAQ:IRDM - Get Free Report)'s share price gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $32.43, but opened at $28.90. Iridium Communications shares last traded at $26.10, with a volume of 4,705,759 shares changing hands.

The technology company reported $0.20 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.23 by ($0.03). The firm had revenue of $216.91 million during the quarter, compared to analyst estimates of $214.73 million. Iridium Communications had a net margin of 14.68% and a return on equity of 19.41%. The firm's revenue was up 7.9% compared to the same quarter last year. During the same period last year, the business earned $0.27 EPS.

Iridium Communications Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, June 30th. Investors of record on Friday, June 13th were issued a $0.14 dividend. The ex-dividend date was Friday, June 13th. This represents a $0.56 dividend on an annualized basis and a yield of 2.14%. Iridium Communications's dividend payout ratio is presently 52.83%.

Wall Street Analyst Weigh In

Several research firms recently weighed in on IRDM. Wall Street Zen cut Iridium Communications from a "buy" rating to a "hold" rating in a report on Thursday, May 1st. William Blair raised Iridium Communications from a "market perform" rating to an "outperform" rating in a report on Tuesday, April 22nd. BWS Financial dropped their price objective on Iridium Communications from $30.00 to $25.00 and set a "neutral" rating for the company in a research note on Wednesday, April 23rd. Finally, Oppenheimer began coverage on Iridium Communications in a report on Monday, May 5th. They set an "outperform" rating and a $34.00 target price for the company. Two equities research analysts have rated the stock with a hold rating and four have given a buy rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $34.25.

Institutional Trading of Iridium Communications

A number of hedge funds have recently bought and sold shares of IRDM. SVB Wealth LLC acquired a new stake in shares of Iridium Communications in the 1st quarter valued at $30,000. UMB Bank n.a. grew 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 period. Pinnacle Holdings LLC boosted its stake in shares of Iridium Communications by 45.4% in the fourth quarter. Pinnacle Holdings LLC now owns 1,528 shares of the technology company's stock valued at $44,000 after purchasing an additional 477 shares during the period. Cooksen Wealth LLC acquired a new stake in Iridium Communications in the first quarter valued at $47,000. Finally, SBI Securities Co. Ltd. raised its holdings in shares of Iridium Communications by 37.2% during the first quarter. SBI Securities Co. Ltd. now owns 1,757 shares of the technology company's stock worth $48,000 after purchasing an additional 476 shares during the period. Institutional investors and hedge funds own 84.36% of the company's stock.

Iridium Communications Stock Down 19.2%

The company has a current ratio of 1.99, a quick ratio of 1.36 and a debt-to-equity ratio of 3.43. The stock has a market cap of $2.83 billion, a P/E ratio of 24.58, a price-to-earnings-growth ratio of 1.07 and a beta of 0.79. The stock's 50-day moving average is $28.86 and its 200-day moving average is $28.03.

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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