Iridium Communications (NASDAQ:IRDM) Stock Price Breaks Above 50 Day Moving Average - Time to Sell?

Key Points

• Shares rose 2.5% to $47.29, moving above the 50-day moving average of $46.43; the 200-day average was $40.56.
• Analyst sentiment is mixed, with an overall Hold rating and an average price target of $41.20—below the share price cited in the article.
• Quarterly results beat estimates: EPS was $0.98 versus $0.34 expected, and revenue was $245.73 million versus $236.30 million. Insiders also sold about 381,688 shares worth $19.1 million over the prior 90 days.

Iridium Communications Inc (NASDAQ:IRDM - Get Free Report) passed above its 50-day moving average during trading on Wednesday. The stock has a 50-day moving average of $46.43 and traded as high as $47.59. Iridium Communications shares last traded at $47.29, with a volume of 553,966 shares trading hands.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on IRDM. Weiss Ratings raised Iridium Communications from a "hold (c)" rating to a "hold (c+)" rating in a report on Wednesday, October 21st. New Street Research raised shares of Iridium Communications from a "neutral" rating to a "buy" rating in a report on Wednesday, July 22nd. Three investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $41.20.

Iridium Communications Stock Up 2.5%

The business's fifty day moving average price is $46.43 and its 200 day moving average price is $40.56. The company has a quick ratio of 0.72, a current ratio of 0.91 and a debt-to-equity ratio of 3.34. The firm has a market capitalization of $5.02 billion, a PE ratio of 31.32, a PEG ratio of 3.61 and a beta of 0.87.

Iridium Communications (NASDAQ:IRDM - Get Free Report) last released its quarterly earnings results on Tuesday, October 20th. The technology company reported $0.98 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.34 by $0.64. The firm had revenue of $245.73 million for the quarter, compared to analyst estimates of $236.30 million. Iridium Communications had a return on equity of 22.04% and a net margin of 18.06%. During the same quarter last year, the company posted $0.35 earnings per share. On average, equities research analysts forecast that Iridium Communications Inc will post 0.98 earnings per share for the current fiscal year.

Insider Activity at Iridium Communications

In other news, insider Kathleen A. Morgan sold 33,192 shares of the business's stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $50.35, for a total value of $1,671,217.20. Following the transaction, the insider owned 124,871 shares of the company's stock, valued at approximately $6,287,254.85. The trade was a 21.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Timothy Last sold 5,769 shares of the business's stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $46.35, for a total value of $267,393.15. Following the completion of the transaction, the executive vice president directly owned 84,130 shares in the company, valued at approximately $3,899,425.50. The trade was a 6.42% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 381,688 shares of company stock worth $19,146,390 in the last ninety days. Company insiders own 2.70% of the company's stock.

Institutional Investors Weigh In On Iridium Communications

Several hedge funds have recently modified their holdings of the stock. BlackRock Inc. acquired a new position in Iridium Communications in the 2nd quarter valued at $737,587,000. Van ECK Associates Corp boosted its holdings in shares of Iridium Communications by 50.9% in the second quarter. Van ECK Associates Corp now owns 2,270,799 shares of the technology company's stock valued at $124,553,000 after acquiring an additional 766,171 shares in the last quarter. Dimensional Fund Advisors LP increased its stake in shares of Iridium Communications by 3.2% during the first quarter. Dimensional Fund Advisors LP now owns 2,159,061 shares of the technology company's stock worth $59,884,000 after acquiring an additional 65,937 shares during the period. Bank of New York Mellon Corp acquired a new position in shares of Iridium Communications during the second quarter worth about $62,751,000. Finally, Principal Financial Group Inc. increased its stake in shares of Iridium Communications by 2.2% during the first quarter. Principal Financial Group Inc. now owns 508,290 shares of the technology company's stock worth $14,100,000 after acquiring an additional 10,702 shares during the period. 84.36% of the stock is owned by institutional investors and hedge funds.

Iridium Communications Company Profile

Iridium Communications provides satellite voice and data services through a low Earth orbit constellation designed to deliver coverage across the globe, including polar regions and remote areas beyond the reach of many terrestrial networks. Its customers include businesses, government agencies, and individuals working on land, at sea, and in the air. The company offers satellite phones, voice and broadband connectivity, push-to-talk communications, and Internet of Things services. Its Iridium Certus platform supports voice and data applications, while its network also carries safety and operational communications for sectors such as maritime, aviation, and government.

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