Iridium Communications (NASDAQ:IRDM) Shares Gap Up After Better-Than-Expected Earnings

Shares of Iridium Communications Inc. (NASDAQ:IRDM) gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $27.72, but opened at $31.10. Iridium Communications shares last traded at $32.08, with a volume of 535,968 shares changing hands.

The technology company reported $0.31 earnings per share for the quarter, topping analysts’ consensus estimates of $0.15 by $0.16. Iridium Communications had a return on equity of 14.34% and a net margin of 14.09%.

Iridium Communications Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, December 31st. Stockholders of record on Monday, December 16th were issued a dividend of $0.14 per share. This represents a $0.56 dividend on an annualized basis and a dividend yield of 1.74%. The ex-dividend date of this dividend was Monday, December 16th. Iridium Communications’s dividend payout ratio is currently 59.58%.

Analyst Upgrades and Downgrades

A number of research firms recently commented on IRDM. BWS Financial reaffirmed a “neutral” rating and set a $30.00 price target on shares of Iridium Communications in a research report on Monday, October 21st. Cantor Fitzgerald assumed coverage on shares of Iridium Communications in a research report on Friday, January 24th. They set an “overweight” rating and a $40.00 target price on the stock. Two equities research analysts have rated the stock with a hold rating, two have issued a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat, Iridium Communications presently has a consensus rating of “Moderate Buy” and a consensus price target of $40.75.

Insider Buying and Selling

In related news, Director Thomas Fitzpatrick sold 12,500 shares of the stock in a transaction that occurred on Friday, January 10th. The shares were sold at an average price of $28.53, for a total transaction of $356,625.00. Following the sale, the director now owns 241,030 shares in the company, valued at approximately $6,876,585.90. This trade represents a 4.93 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. 2.00% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in IRDM. Norges Bank bought a new position in shares of Iridium Communications in the 4th quarter valued at $28,240,000. American Century Companies Inc. boosted its stake in Iridium Communications by 94.2% in the fourth quarter. American Century Companies Inc. now owns 1,735,842 shares of the technology company’s stock valued at $50,374,000 after buying an additional 841,951 shares in the last quarter. Schroder Investment Management Group grew its position in Iridium Communications by 44.7% in the fourth quarter. Schroder Investment Management Group now owns 2,213,512 shares of the technology company’s stock valued at $64,125,000 after acquiring an additional 683,777 shares during the last quarter. Raymond James Financial Inc. bought a new position in Iridium Communications in the fourth quarter valued at about $17,613,000. Finally, Nikko Asset Management Americas Inc. raised its stake in Iridium Communications by 13.2% during the fourth quarter. Nikko Asset Management Americas Inc. now owns 2,827,580 shares of the technology company’s stock worth $82,028,000 after acquiring an additional 329,915 shares in the last quarter. 84.36% of the stock is currently owned by institutional investors and hedge funds.

Iridium Communications Price Performance

The business’s fifty day moving average price is $29.13 and its 200 day moving average price is $28.81. The company has a debt-to-equity ratio of 2.68, a current ratio of 2.62 and a quick ratio of 2.01. The stock has a market cap of $3.66 billion, a P/E ratio of 34.13 and a beta of 0.65.

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.