Iridium Communications (NASDAQ:IRDM) Shares Gap Up After Strong Earnings

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 $24.71, but opened at $25.48. Iridium Communications shares last traded at $27.21, with a volume of 196,193 shares traded.

The technology company reported $0.16 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.15 by $0.01. The business had revenue of $203.80 million during the quarter, compared to analysts’ expectations of $193.84 million. Iridium Communications had a return on equity of 1.58% and a net margin of 1.95%. The business’s quarterly revenue was down .7% compared to the same quarter last year. During the same quarter last year, the business posted $0.08 EPS.

Iridium Communications Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, March 29th. Shareholders of record on Friday, March 15th were given a dividend of $0.13 per share. This represents a $0.52 annualized dividend and a yield of 1.90%. The ex-dividend date was Thursday, March 14th. Iridium Communications’s dividend payout ratio (DPR) is 400.00%.

Wall Street Analysts Forecast Growth

IRDM has been the topic of several research analyst reports. William Blair lowered Iridium Communications from an “outperform” rating to a “market perform” rating in a research report on Thursday, February 15th. Barclays dropped their target price on Iridium Communications from $45.00 to $42.00 and set an “overweight” rating on the stock in a report on Friday, February 23rd. BWS Financial lowered Iridium Communications from a “buy” rating to a “neutral” rating and set a $30.00 target price on the stock. in a report on Friday, February 16th. TheStreet raised Iridium Communications from a “d+” rating to a “c-” rating in a report on Thursday, February 15th. Finally, Raymond James dropped their target price on Iridium Communications from $53.00 to $48.00 and set a “strong-buy” rating on the stock in a report on Friday, February 16th. Three analysts have rated the stock with a hold rating, three have issued a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $49.80.

Hedge Funds Weigh In On Iridium Communications

Large investors have recently added to or reduced their stakes in the business. Northwest Financial Advisors purchased a new position in Iridium Communications during the fourth quarter worth about $26,000. ICA Group Wealth Management LLC purchased a new position in Iridium Communications during the fourth quarter worth about $36,000. Quarry LP purchased a new position in Iridium Communications during the second quarter worth about $39,000. West Tower Group LLC purchased a new position in Iridium Communications during the fourth quarter worth about $27,000. Finally, Belpointe Asset Management LLC lifted its position in Iridium Communications by 78.7% during the first quarter. Belpointe Asset Management LLC now owns 990 shares of the technology company’s stock worth $61,000 after buying an additional 436 shares during the period. 84.36% of the stock is currently owned by hedge funds and other institutional investors.

Iridium Communications Price Performance

The company has a 50-day moving average of $27.66 and a two-hundred day moving average of $34.93. The stock has a market capitalization of $3.35 billion, a PE ratio of 210.77 and a beta of 0.85. The company has a debt-to-equity ratio of 1.65, a current ratio of 2.06 and a quick ratio of 1.37.

Iridium Communications Company Profile

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.