Key Points
- Iridium insider Suzanne McBride sold 85,454 shares for approximately $4.30 million at an average price of $50.28, reducing her position by 23.25% to 282,017 shares.
- Insiders collectively sold about 375,919 shares worth $18.9 million on August 17–18, including a major disposal by director Thomas Fitzpatrick, who reduced his reported ownership by 78.21%.
- Iridium reported quarterly EPS of $0.09, missing the $0.28 consensus estimate, though revenue rose 3.8% year over year to $225.24 million. Analysts maintain a consensus “Hold” rating, while the company declared a quarterly dividend of $0.15 per share.
Iridium Communications Inc (NASDAQ:IRDM - Get Free Report) CAO Timothy Kapalka sold 13,473 shares of the business's stock in a transaction on Monday, August 17th. The stock was sold at an average price of $50.51, for a total value of $680,521.23. Following the transaction, the chief accounting officer owned 35,731 shares of the company's stock, valued at $1,804,772.81. This trade represents a 27.38% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this link.
Iridium Communications Price Performance
Shares of IRDM opened at $48.71 on Thursday. The firm has a market capitalization of $5.16 billion, a price-to-earnings ratio of 55.35, a price-to-earnings-growth ratio of 3.96 and a beta of 0.88. The company has a debt-to-equity ratio of 3.70, a quick ratio of 2.31 and a current ratio of 2.78. Iridium Communications Inc has a one year low of $15.65 and a one year high of $57.18. The stock's fifty day moving average is $48.15 and its 200-day moving average is $38.61.
Iridium Communications (NASDAQ:IRDM - Get Free Report) last announced its earnings results on Wednesday, July 22nd. The technology company reported $0.09 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.28 by ($0.19). Iridium Communications had a net margin of 10.55% and a return on equity of 22.57%. The company had revenue of $225.24 million during the quarter, compared to the consensus estimate of $220.32 million. During the same quarter in the prior year, the company earned $0.20 EPS. The business's quarterly revenue was up 3.8% on a year-over-year basis. Equities analysts anticipate that Iridium Communications Inc will post 0.95 EPS for the current year.
Iridium Communications Announces Dividend
The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th will be issued a $0.15 dividend. The ex-dividend date is Tuesday, September 15th. This represents a $0.60 annualized dividend and a dividend yield of 1.2%. Iridium Communications's dividend payout ratio (DPR) is 68.18%.
Analyst Ratings Changes
A number of equities research analysts have weighed in on IRDM shares. BWS Financial restated a "sell" rating and issued a $16.00 target price on shares of Iridium Communications in a research report on Monday, April 27th. Weiss Ratings reissued a "hold (c)" rating on shares of Iridium Communications in a research note on Friday, July 10th. Oppenheimer upped their price objective on Iridium Communications from $48.00 to $60.00 and gave the company an "outperform" rating in a report on Wednesday, June 3rd. Raymond James Financial reaffirmed a "market perform" rating on shares of Iridium Communications in a research note on Friday, April 24th. Finally, Morgan Stanley lifted their target price on Iridium Communications from $26.00 to $54.00 and gave the stock an "equal weight" rating in a report on Tuesday, June 30th. Three analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $38.67.
View Our Latest Stock Analysis on IRDM
Key Headlines Impacting Iridium Communications
Here are the key news stories impacting Iridium Communications this week:
- Positive Sentiment: Iridium recently declared a quarterly dividend of $0.15 per share, or $0.60 annualized, providing a 1.2% yield. The dividend may support investor interest, although the payout ratio is relatively high at 68.18%. Satellite stocks article
- Neutral Sentiment: Analyst views remain mixed. New Street Research upgraded IRDM to Buy, while William Blair moved to Hold and BWS Financial maintained a Sell rating. The consensus rating is Hold, with a $38.67 price target—well below the stock’s recent trading range—suggesting valuation concerns despite Iridium’s strong share-price appreciation over the past year. Iridium Communications analyst coverage
- Negative Sentiment: Company insiders collectively sold approximately 375,919 shares worth $18.9 million in transactions dated August 17–18, at prices between $49.20 and $50.51. The broad participation by executives and directors may be interpreted as profit-taking and is the clearest near-term negative catalyst for IRDM. SEC insider filing
- Negative Sentiment: Director Thomas Fitzpatrick accounted for the largest sale, disposing of 209,233 shares for about $10.5 million and reducing his reported ownership by 78.21%. Additional sales came from Suzanne McBride, Kathleen Morgan, EVP Timothy Last and CAO Timothy Kapalka, with each reducing their positions by roughly 17% to 27%. SEC director filing
- Negative Sentiment: Investor caution is amplified by Iridium’s demanding valuation—approximately 55 times earnings and nearly four times its PEG ratio—alongside its latest quarterly EPS miss. Revenue exceeded estimates and increased year over year, but earnings fell short of expectations, leaving the stock vulnerable to profit-taking after its strong run.
Hedge Funds Weigh In On Iridium Communications
Hedge funds and other institutional investors have recently modified their holdings of the stock. Royal Bank of Canada raised its holdings in 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 lifted its stake in Iridium Communications by 1,243.0% during the first quarter. Amundi now owns 40,479 shares of the technology company's stock valued at $1,035,000 after buying an additional 37,465 shares in the last quarter. Goldman Sachs Group Inc. boosted its holdings in shares of Iridium Communications by 16.7% in the first quarter. Goldman Sachs Group Inc. now owns 232,231 shares of the technology company's stock worth $6,345,000 after buying an additional 33,191 shares during the period. United Services Automobile Association acquired a new position in shares of Iridium Communications in the first quarter worth about $218,000. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of Iridium Communications by 16.2% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 539,566 shares of the technology company's stock worth $14,741,000 after acquiring an additional 75,060 shares in the last quarter. Institutional investors and hedge funds own 84.36% of the company's stock.
About Iridium Communications
(
Get Free Report)
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.
Further Reading
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