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

Iridium Communications Inc (NASDAQ:IRDM)’s stock price gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $40.40, but opened at $38.11. Iridium Communications shares last traded at $41.1410, with a volume of 1,413,806 shares trading hands.

The technology company reported $0.20 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.27 by ($0.07). The business had revenue of $219.06 million during the quarter, compared to the consensus estimate of $218.39 million. Iridium Communications had a net margin of 13.12% and a return on equity of 24.01%. The firm’s quarterly revenue was up 2.0% compared to the same quarter last year. During the same quarter last year, the business earned $0.27 EPS.

Iridium Communications Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, March 31st. Investors of record on Monday, March 16th were issued a $0.15 dividend. This represents a $0.60 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date was Monday, March 16th. Iridium Communications’s dividend payout ratio (DPR) is 56.60%.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on the stock. Barclays increased their target price on shares of Iridium Communications from $25.00 to $36.00 and gave the company an “overweight” rating in a research report on Thursday, April 9th. BWS Financial reissued a “sell” rating and set a $16.00 target price on shares of Iridium Communications in a research report on Wednesday, April 15th. Weiss Ratings raised shares of Iridium Communications from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Tuesday, March 10th. Finally, Morgan Stanley increased their target price on shares of Iridium Communications from $24.00 to $26.00 and gave the company an “equal weight” rating in a research report on Wednesday, February 18th. Three analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $27.60.

Insider Activity at Iridium Communications

In other news, CAO Timothy Kapalka sold 2,043 shares of the firm’s stock in a transaction that occurred on Monday, April 6th. The shares were sold at an average price of $33.00, for a total transaction of $67,419.00. Following the completion of the sale, the chief accounting officer owned 45,721 shares of the company’s stock, valued at $1,508,793. This trade represents a 4.28% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.70% of the stock is currently owned by company insiders.

Institutional Trading of Iridium Communications

Several large investors have recently modified their holdings of IRDM. Royal Bank of Canada grew its position in shares of Iridium Communications by 33.0% during the 1st quarter. Royal Bank of Canada now owns 48,325 shares of the technology company’s stock worth $1,320,000 after buying an additional 11,985 shares during the period. Amundi grew its position in Iridium Communications by 1,243.0% in the 1st quarter. Amundi now owns 40,479 shares of the technology company’s stock valued at $1,035,000 after purchasing an additional 37,465 shares during the period. Goldman Sachs Group Inc. grew its position in Iridium Communications by 16.7% in the 1st quarter. Goldman Sachs Group Inc. now owns 232,231 shares of the technology company’s stock valued at $6,345,000 after purchasing an additional 33,191 shares during the period. United Services Automobile Association acquired a new stake in Iridium Communications in the 1st quarter valued at $218,000. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in Iridium Communications by 16.2% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 539,566 shares of the technology company’s stock valued at $14,741,000 after purchasing an additional 75,060 shares during the period. Institutional investors and hedge funds own 84.36% of the company’s stock.

Iridium Communications Trading Up 2.0%

The firm’s 50-day moving average is $28.58 and its 200-day moving average is $21.86. The company has a current ratio of 2.48, a quick ratio of 1.82 and a debt-to-equity ratio of 3.80. The firm has a market cap of $4.35 billion, a price-to-earnings ratio of 38.77, a P/E/G ratio of 2.90 and a beta of 0.48.

About Iridium Communications

Iridium Communications Inc operates a global satellite communications network that delivers voice and data services across land, sea and air. The company’s unique architecture relies on a constellation of 66 low-Earth orbit satellites, enabling real-time connectivity in regions beyond the reach of terrestrial wireless networks. Iridium’s core offerings include satellite voice and messaging services, broadband data terminals, push-to-talk (PTT) interoperability and machine-to-machine (M2M) solutions for the Internet of Things (IoT).

Iridium serves a diverse range of markets, including maritime shipping, aviation, government and defense, energy, and enterprise.