Iridium Communications (NASDAQ:IRDM) Cut to "Sell" at Zacks Investment Research

Tuesday, April 13, 2021 | MarketBeat

Iridium Communications (NASDAQ:IRDM) was downgraded by Zacks Investment Research from a "hold" rating to a "sell" rating in a research report issued to clients and investors on Tuesday, Zacks.com reports. They currently have a $44.00 price objective on the technology company's stock. Zacks Investment Research's target price indicates a potential upside of 6.93% from the company's current price.

According to Zacks, "Iridium benefits from its recurring service revenue base and expects higher revenues in 2021 on the back of robust demand. It delivers cost-effective broadband services through its Certus technology and shares strategic relationships with various government organizations. It has witnessed steady subscriber growth and mobile penetration backed by an efficient operating model. Iridium’s mobile and satellite network leverages the interlinked mesh architecture of 66 operational satellites to provide services across territories. Commercial business is touted as the primary driver of long-term growth. However, supply-chain woes due to the pandemic pose a headwind. Competition from regional market suppliers restricts its potential to attract new customers. Inept cost structure and increased lead time to obtain spectrum licenses dent its margins."

Other equities research analysts also recently issued reports about the stock. Barclays downgraded shares of Iridium Communications from an "overweight" rating to an "underweight" rating and increased their price target for the stock from $32.00 to $38.00 in a report on Friday, February 12th. BWS Financial downgraded shares of Iridium Communications from a "buy" rating to a "neutral" rating in a research note on Wednesday, January 20th. Finally, Raymond James raised shares of Iridium Communications from a "market perform" rating to an "outperform" rating and set a $44.00 target price on the stock in a research note on Tuesday, March 9th. Two research analysts have rated the stock with a sell rating, two have issued a hold rating and one has assigned a buy rating to the stock. The company currently has an average rating of "Hold" and a consensus target price of $40.75.

Shares of Iridium Communications stock traded up $0.69 on Tuesday, reaching $41.15. The stock had a trading volume of 49,805 shares, compared to its average volume of 1,626,584. Iridium Communications has a 1 year low of $19.18 and a 1 year high of $54.65. The company has a market cap of $5.52 billion, a P/E ratio of -34.87 and a beta of 1.33. The company has a current ratio of 2.85, a quick ratio of 2.52 and a debt-to-equity ratio of 1.13. The business's 50 day moving average is $39.96 and its two-hundred day moving average is $37.42.

Iridium Communications (NASDAQ:IRDM) last announced its quarterly earnings results on Wednesday, February 10th. The technology company reported ($0.06) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.08) by $0.02. Iridium Communications had a negative net margin of 27.09% and a negative return on equity of 3.09%. The firm had revenue of $146.51 million for the quarter, compared to the consensus estimate of $139.43 million. During the same period in the prior year, the firm posted ($0.82) earnings per share. On average, equities analysts anticipate that Iridium Communications will post -0.28 EPS for the current fiscal year.

Iridium Communications declared that its Board of Directors has initiated a stock repurchase program on Wednesday, February 10th that permits the company to repurchase $300.00 million in outstanding shares. This repurchase authorization permits the technology company to reacquire up to 4.7% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company's board believes its shares are undervalued.

In other Iridium Communications news, CEO Matthew J. Desch sold 62,087 shares of the firm's stock in a transaction on Thursday, February 18th. The stock was sold at an average price of $48.32, for a total transaction of $3,000,043.84. Also, Director Barry West sold 10,000 shares of the firm's stock in a transaction on Thursday, March 18th. The shares were sold at an average price of $40.50, for a total value of $405,000.00. Following the transaction, the director now directly owns 42,861 shares of the company's stock, valued at approximately $1,735,870.50. The disclosure for this sale can be found here. Insiders sold 388,114 shares of company stock valued at $17,993,835 in the last ninety days. 3.80% of the stock is currently owned by insiders.

Institutional investors and hedge funds have recently bought and sold shares of the company. Parkside Financial Bank & Trust raised its position in shares of Iridium Communications by 28.0% in the 4th quarter. Parkside Financial Bank & Trust now owns 965 shares of the technology company's stock worth $38,000 after purchasing an additional 211 shares during the last quarter. Arcadia Investment Management Corp MI purchased a new position in shares of Iridium Communications in the 4th quarter worth about $39,000. Albion Financial Group UT purchased a new position in shares of Iridium Communications in the 4th quarter worth about $39,000. Archer Investment Corp purchased a new position in shares of Iridium Communications in the 4th quarter worth about $40,000. Finally, Vantage Consulting Group Inc purchased a new position in shares of Iridium Communications in the 4th quarter worth about $47,000. 81.62% of the stock is owned by hedge funds and other institutional investors.

Iridium Communications Company Profile

Iridium Communications Inc provides mobile voice and data communications services and product to businesses, the United States and foreign 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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