Iridium Communications (NASDAQ:IRDM) Shares Gap Up on Earnings Beat

Iridium Communications Inc. (NASDAQ:IRDM) gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. 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.

The technology company reported $0.31 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.15 by $0.16. Iridium Communications had a return on equity of 14.34% and a net margin of 14.09%.

Iridium Communications Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, December 31st. Stockholders of record on Monday, December 16th were issued a $0.14 dividend. The ex-dividend date was Monday, December 16th. This represents a $0.56 dividend on an annualized basis and a dividend yield of 1.74%. Iridium Communications’s dividend payout ratio (DPR) is presently 59.58%.

Analysts Set New Price Targets

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

Insiders Place Their Bets

In other news, Director Thomas Fitzpatrick sold 12,500 shares of the business’s stock in a transaction dated Friday, January 10th. The shares were sold at an average price of $28.53, for a total transaction of $356,625.00. Following the transaction, the director now directly owns 241,030 shares in the company, valued at $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 available at this link. Insiders own 2.00% of the company’s stock.

Institutional Investors Weigh In On Iridium Communications

Several hedge funds have recently bought and sold shares of IRDM. Dynamic Technology Lab Private Ltd bought a new stake in Iridium Communications in the fourth quarter valued at approximately $1,171,000. Resona Asset Management Co. Ltd. acquired a new position in shares of Iridium Communications during the 4th quarter worth approximately $358,000. Riverwater Partners LLC raised its stake in Iridium Communications by 19.2% in the 4th quarter. Riverwater Partners LLC now owns 101,496 shares of the technology company’s stock valued at $2,945,000 after acquiring an additional 16,350 shares during the period. Allen Wealth Management LLC acquired a new stake in Iridium Communications during the 4th quarter valued at $1,136,000. Finally, Trexquant Investment LP boosted its position in Iridium Communications by 142.0% during the fourth quarter. Trexquant Investment LP now owns 441,183 shares of the technology company’s stock worth $12,803,000 after purchasing an additional 258,892 shares during the period. 84.36% of the stock is currently owned by institutional investors and hedge funds.

Iridium Communications Stock Performance

The stock has a market capitalization of $3.66 billion, a price-to-earnings ratio of 34.13 and a beta of 0.65. The company’s fifty day simple moving average is $29.13 and its 200 day simple moving average is $28.81. The company has a quick ratio of 2.01, a current ratio of 2.62 and a debt-to-equity ratio of 2.68.

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.