Iridium Communications (NASDAQ:IRDM) Shares Gap Down Following Weak Earnings

Iridium Communications Inc (NASDAQ:IRDM - Get Free Report)'s stock price gapped down prior to trading on Thursday after the company announced weaker than expected quarterly earnings. 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 trading hands.

The technology company reported $0.20 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.23 by ($0.03). Iridium Communications had a return on equity of 20.28% and a net margin of 13.20%. The business had revenue of $216.91 million during the quarter, compared to the consensus estimate of $214.73 million. During the same quarter in the previous year, the business posted $0.27 earnings per share. The company's quarterly revenue was up 7.9% compared to the same quarter last year.

Iridium Communications Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 30th. Investors of record on Monday, September 15th will be given a $0.15 dividend. The ex-dividend date of this dividend is Monday, September 15th. This is an increase from Iridium Communications's previous quarterly dividend of $0.14. This represents a $0.60 annualized dividend and a yield of 2.35%. Iridium Communications's dividend payout ratio (DPR) is currently 60.61%.

Wall Street Analyst Weigh In

Several research firms have commented on IRDM. Oppenheimer began coverage on shares of Iridium Communications in a research note on Monday, May 5th. They set an "outperform" rating and a $34.00 target price on the stock. Barclays lowered their target price on shares of Iridium Communications from $38.00 to $31.00 and set an "overweight" rating on the stock in a research note on Monday. Raymond James Financial reissued a "strong-buy" rating and set a $39.00 target price (down previously from $47.00) on shares of Iridium Communications in a research note on Friday. William Blair raised shares of Iridium Communications from a "market perform" rating to an "outperform" rating in a research note on Tuesday, April 22nd. Finally, BWS Financial lowered their target price on shares of Iridium Communications from $30.00 to $25.00 and set a "neutral" rating on the stock in a research note on Wednesday, April 23rd. Two investment analysts have rated the stock with a hold rating, four have assigned a buy rating and one has issued a strong buy rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $33.80.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. SVB Wealth LLC acquired a new stake in shares of Iridium Communications during the first quarter worth approximately $30,000. UMB Bank n.a. lifted its stake in shares of Iridium Communications by 129.8% in 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 lifted 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 worth $44,000 after buying an additional 477 shares during the last quarter. Cooksen Wealth LLC acquired a new stake in shares of Iridium Communications in the first quarter worth $47,000. Finally, SBI Securities Co. Ltd. increased its position in 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 acquiring an additional 476 shares during the period. 84.36% of the stock is owned by hedge funds and other institutional investors.

Iridium Communications Price Performance

The stock's 50-day moving average is $28.85 and its 200-day moving average is $27.95. The firm has a market cap of $2.76 billion, a P/E ratio of 25.80, a price-to-earnings-growth ratio of 0.86 and a beta of 0.79. The company has a quick ratio of 1.75, a current ratio of 2.51 and a debt-to-equity ratio of 3.82.

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.