Iridium Communications (NASDAQ:IRDM) Shares Gap Up on Better-Than-Expected 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 $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 EPS for the quarter, beating the consensus estimate 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 business also recently announced a quarterly dividend, which was paid on Tuesday, December 31st. Investors of record on Monday, December 16th were given a dividend of $0.14 per share. The ex-dividend date was Monday, December 16th. This represents a $0.56 annualized dividend and a dividend yield of 1.75%. Iridium Communications’s payout ratio is 59.58%.

Analyst Ratings Changes

Several research analysts have weighed in on the company. BWS Financial reissued a “neutral” rating and issued a $30.00 price objective on shares of Iridium Communications in a research report on Monday, October 21st. Cantor Fitzgerald assumed coverage on 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 investment analysts have rated the stock with a hold rating, two have issued a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat.com, Iridium Communications presently 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 stock in a transaction dated Friday, January 10th. The stock was 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 approximately $6,876,585.90. This represents a 4.93 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Corporate insiders own 2.00% of the company’s stock.

Hedge Funds Weigh In On Iridium Communications

Institutional investors have recently modified their holdings of the company. Plato Investment Management Ltd purchased a new stake in Iridium Communications in the 4th quarter worth approximately $32,000. SBI Securities Co. Ltd. bought a new position in Iridium Communications during the 4th quarter valued at approximately $37,000. Pinnacle Holdings LLC increased its position in Iridium Communications by 45.4% during the 4th quarter. Pinnacle Holdings LLC now owns 1,528 shares of the technology company’s stock valued at $44,000 after buying an additional 477 shares in the last quarter. Capital Performance Advisors LLP bought a new position in Iridium Communications during the 3rd quarter valued at approximately $57,000. Finally, Fifth Third Bancorp increased its position in Iridium Communications by 19.8% during the 4th quarter. Fifth Third Bancorp now owns 2,162 shares of the technology company’s stock valued at $63,000 after buying an additional 357 shares in the last quarter. 84.36% of the stock is currently owned by institutional investors.

Iridium Communications Trading Up 15.4 %

The company has a debt-to-equity ratio of 2.68, a quick ratio of 2.01 and a current ratio of 2.62. The company has a market cap of $3.64 billion, a P/E ratio of 34.03 and a beta of 0.65. The stock has a 50-day moving average of $29.17 and a two-hundred day moving average of $28.83.

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.