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

Iridium Communications Inc. (NASDAQ:IRDM)’s share price gapped up before the market opened 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 (EPS) for the quarter, beating the consensus estimate of $0.15 by $0.16. Iridium Communications had a net margin of 14.09% and a return on equity of 14.34%.

Iridium Communications Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, December 31st. Stockholders of record on Monday, December 16th were given a dividend of $0.14 per share. This represents a $0.56 dividend on an annualized basis and a dividend yield of 1.77%. The ex-dividend date was Monday, December 16th. Iridium Communications’s payout ratio is 58.95%.

Analysts Set New Price Targets

IRDM has been the topic of several analyst reports. Cantor Fitzgerald assumed coverage on Iridium Communications in a research report on Friday, January 24th. They set an “overweight” rating and a $40.00 target price on the stock. BWS Financial reaffirmed a “neutral” rating and set a $30.00 price objective on shares of Iridium Communications in a research report on Monday, October 21st. Two research analysts have rated the stock with a hold rating, two have given a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $40.75.

Insider Buying and Selling

In related news, Director Thomas Fitzpatrick sold 12,500 shares of the business’s stock in a transaction that occurred on Friday, January 10th. The stock was sold at an average price of $28.53, for a total value of $356,625.00. Following the transaction, the director now directly owns 241,030 shares of the company’s stock, valued at approximately $6,876,585.90. The trade was a 4.93 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 2.00% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Iridium Communications

A number of institutional investors have recently added to or reduced their stakes in the stock. CWM LLC grew its stake in Iridium Communications by 546.5% during the third quarter. CWM LLC now owns 14,547 shares of the technology company’s stock valued at $443,000 after acquiring an additional 12,297 shares in the last quarter. IQ EQ FUND MANAGEMENT IRELAND Ltd bought a new position in shares of Iridium Communications during the 3rd quarter valued at about $1,963,000. nVerses Capital LLC grew its position in shares of Iridium Communications by 308.3% during the third quarter. nVerses Capital LLC now owns 9,800 shares of the technology company’s stock valued at $298,000 after purchasing an additional 7,400 shares in the last quarter. Inspire Advisors LLC bought a new stake in shares of Iridium Communications in the third quarter worth about $228,000. Finally, Blue Trust Inc. lifted its position in shares of Iridium Communications by 545.7% in the third quarter. Blue Trust Inc. now owns 9,628 shares of the technology company’s stock worth $293,000 after buying an additional 8,137 shares in the last quarter. 84.36% of the stock is owned by hedge funds and other institutional investors.

Iridium Communications Stock Performance

The company has a market capitalization of $3.60 billion, a P/E ratio of 33.65 and a beta of 0.65. The business has a 50 day moving average of $29.18 and a 200 day moving average of $28.85. The company has a quick ratio of 2.01, a current ratio of 2.62 and a debt-to-equity ratio of 2.68.

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.