Iridium Communications (NASDAQ:IRDM) Reaches New 12-Month High on Analyst Upgrade

Iridium Communications Inc (NASDAQ:IRDM)’s share price hit a new 52-week high during mid-day trading on Thursday after New Street Research upgraded the stock to a hold rating. The company traded as high as $44.61 and last traded at $43.4620, with a volume of 1114831 shares traded. The stock had previously closed at $43.09.

Other research analysts have also issued reports about the stock. BWS Financial restated a “sell” rating and set a $16.00 price target on shares of Iridium Communications in a research report on Monday, April 27th. Morgan Stanley lifted their price objective on Iridium Communications from $24.00 to $26.00 and gave the company an “equal weight” rating in a research note on Wednesday, February 18th. Raymond James Financial restated a “market perform” rating on shares of Iridium Communications in a research report on Friday, April 24th. Weiss Ratings upgraded Iridium Communications from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Tuesday, March 10th. Finally, Barclays raised their price target on Iridium Communications from $25.00 to $36.00 and gave the company an “overweight” rating in a report on Thursday, April 9th. One investment analyst has rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, Iridium Communications has a consensus rating of “Hold” and a consensus target price of $28.80.

Insider Transactions at Iridium Communications

In other news, CAO Timothy Kapalka sold 2,043 shares of the company’s stock in a transaction dated Monday, April 6th. The stock was sold at an average price of $33.00, for a total value of $67,419.00. Following the completion of the transaction, the chief accounting officer directly owned 45,721 shares in the company, valued at approximately $1,508,793. This represents a 4.28% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed 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.

Key Iridium Communications News

Here are the key news stories impacting Iridium Communications this week:

• Positive Sentiment: Iridium announced it will acquire the remaining 61% of Aireon for about $366.7 million, giving it full control of the space-based air traffic surveillance business and potentially strengthening its long-term aviation safety growth strategy. Article: Iridium to Acquire Aireon, Advancing its Strategy to Lead the Future of Aviation Safety
• Positive Sentiment: Some commentary suggests the Aireon deal could be a “bold move” that supports Iridium’s long-term growth by expanding its aviation-focused business. Article: Iridium Communications Makes A Bold Move That Creates Long-Term Growth
• Neutral Sentiment: New Street Research began coverage with a neutral/hold view and later upgraded Iridium to hold, with a $40 price target that is near the current trading level, suggesting limited near-term upside in the stock. Article: Iridium Communications was upgraded by New Street Research to “hold”
• Neutral Sentiment: Analysts now broadly rate Iridium as a hold, reinforcing a wait-and-see stance while the company integrates Aireon and clarifies the financial impact of the deal. Article: Iridium Communications Inc (NASDAQ:IRDM) Given Consensus Rating of “Hold” by Analysts
• Negative Sentiment: Recent valuation-focused coverage says investors are questioning whether the recent share-price momentum is fully justified, which may be pressuring the stock. Article: Assessing Iridium Communications (IRDM) Valuation After Recent Share Price Momentum
• Negative Sentiment: Analysts highlighted valuation downside risk after the upgrade, with one note setting a $40 target below the current share price, implying the rally may have run ahead of fundamentals. Article: Iridium Communications (NASDAQ:IRDM) Now Covered by Analysts at New Street Research

Institutional Trading of Iridium Communications

Several institutional investors have recently added to or reduced their stakes in IRDM. Quantinno Capital Management LP increased its holdings in shares of Iridium Communications by 3.1% in the second quarter. Quantinno Capital Management LP now owns 15,199 shares of the technology company’s stock worth $459,000 after buying an additional 461 shares during the period. Empowered Funds LLC grew its position in Iridium Communications by 4.4% during the 4th quarter. Empowered Funds LLC now owns 11,350 shares of the technology company’s stock worth $197,000 after acquiring an additional 478 shares during the last quarter. Allworth Financial LP grew its position in Iridium Communications by 11.2% during the 4th quarter. Allworth Financial LP now owns 5,677 shares of the technology company’s stock worth $99,000 after acquiring an additional 572 shares during the last quarter. Quadrant Capital Group LLC increased its stake in Iridium Communications by 107.5% in the 4th quarter. Quadrant Capital Group LLC now owns 1,430 shares of the technology company’s stock worth $25,000 after purchasing an additional 741 shares during the period. Finally, Pictet Asset Management Holding SA lifted its position in Iridium Communications by 5.3% in the first quarter. Pictet Asset Management Holding SA now owns 14,971 shares of the technology company’s stock valued at $415,000 after purchasing an additional 753 shares during the last quarter. 84.36% of the stock is currently owned by hedge funds and other institutional investors.

Iridium Communications Stock Down 4.2%

The stock has a market cap of $4.40 billion, a P/E ratio of 42.04, a P/E/G ratio of 2.96 and a beta of 0.79. The company has a quick ratio of 2.21, a current ratio of 2.85 and a debt-to-equity ratio of 3.74. The company has a 50-day simple moving average of $33.63 and a two-hundred day simple moving average of $24.10.

Iridium Communications (NASDAQ:IRDM) last posted its earnings results on Thursday, April 23rd. The technology company reported $0.20 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.27 by ($0.07). Iridium Communications had a return on equity of 22.76% and a net margin of 12.05%.The business had revenue of $219.06 million during the quarter, compared to the consensus estimate of $218.39 million. During the same period in the previous year, the business earned $0.27 earnings per share. The firm’s revenue for the quarter was up 2.0% compared to the same quarter last year. On average, equities analysts forecast that Iridium Communications Inc will post 1.04 EPS for the current year.

Iridium Communications Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Monday, March 16th were paid a dividend of $0.15 per share. The ex-dividend date of this dividend was Monday, March 16th. This represents a $0.60 annualized dividend and a dividend yield of 1.4%. Iridium Communications’s payout ratio is 60.61%.

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.