Iridium Communications (NASDAQ:IRDM) Sets New 52-Week High – Still a Buy?

Iridium Communications Inc (NASDAQ:IRDM) reached a new 52-week high during mid-day trading on Tuesday . The company traded as high as $55.17 and last traded at $54.59, with a volume of 12994251 shares traded. The stock had previously closed at $43.52.

Iridium Communications News Summary

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

• Positive Sentiment: Iridium agreed to be acquired by Rocket Lab in an $8 billion cash-and-stock transaction, giving shareholders cash plus Rocket Lab shares and creating a vertically integrated space communications platform. Reuters: Rocket Lab to buy satellite communications firm Iridium in $8 billion deal
• Positive Sentiment: Investors are betting the combined company could better compete with SpaceX, with Rocket Lab gaining access to Iridium’s satellite fleet and wireless resources. WSJ: Rocket Lab Buys Satellite Operator Iridium in Bid to Challenge SpaceX
• Neutral Sentiment: Several law firms announced investigations into whether the deal gives Iridium shareholders a fair price, adding headline risk but not changing the announced terms. PR Newswire: Shareholder Alert – Ademi LLP investigates whether Iridium is obtaining a fair price
• Negative Sentiment: Those investigations could lead to merger-related litigation or delays, which may create some uncertainty around closing. GlobeNewswire: Johnson Fistel Investigates Proposed Sale of Iridium Communications

Analyst Ratings Changes

Several research firms recently commented on IRDM. BWS Financial restated a “sell” rating and set a $16.00 price target on shares of Iridium Communications in a report on Monday, April 27th. Oppenheimer upped their price objective on shares of Iridium Communications from $48.00 to $60.00 and gave the company an “outperform” rating in a research note on Wednesday, June 3rd. Barclays increased their target price on shares of Iridium Communications from $25.00 to $36.00 and gave the stock an “overweight” rating in a research report on Thursday, April 9th. Weiss Ratings upgraded shares of Iridium Communications from a “sell (d+)” rating to a “hold (c-)” rating in a report on Tuesday, March 10th. Finally, Raymond James Financial reaffirmed a “market perform” rating on shares of Iridium Communications in a research note on Friday, April 24th. Two analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Iridium Communications presently has a consensus rating of “Hold” and an average price target of $34.00.

Iridium Communications Trading Up 25.4%

The firm has a market capitalization of $5.77 billion, a price-to-earnings ratio of 55.14, a price-to-earnings-growth ratio of 2.94 and a beta of 0.88. The company has a current ratio of 2.85, a quick ratio of 2.21 and a debt-to-equity ratio of 3.74. The company has a fifty day moving average price of $44.51 and a 200-day moving average price of $30.68.

Iridium Communications (NASDAQ:IRDM) last announced its quarterly earnings results on Thursday, April 23rd. The technology company reported $0.20 EPS for the quarter, missing the consensus estimate of $0.27 by ($0.07). Iridium Communications had a net margin of 12.05% and a return on equity of 22.76%. The firm 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 firm posted $0.27 EPS. The company’s quarterly revenue was up 2.0% compared to the same quarter last year. On average, equities research analysts predict that Iridium Communications Inc will post 1.05 EPS for the current year.

Iridium Communications Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Monday, June 15th will be given a $0.15 dividend. This represents a $0.60 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend is Monday, June 15th. Iridium Communications’s payout ratio is currently 60.61%.

Insider Buying and Selling

In other news, CAO Timothy Kapalka sold 2,043 shares of the stock in a transaction on Monday, April 6th. The shares were sold at an average price of $33.00, for a total transaction of $67,419.00. Following the transaction, the chief accounting officer owned 45,721 shares in the company, valued at $1,508,793. This represents a 4.28% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.70% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Iridium Communications

Institutional investors and hedge funds have recently modified their holdings of the business. Quantinno Capital Management LP lifted its position in 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 purchasing an additional 461 shares during the period. Empowered Funds LLC boosted its holdings in Iridium Communications by 4.4% during the fourth quarter. Empowered Funds LLC now owns 11,350 shares of the technology company’s stock valued at $197,000 after purchasing an additional 478 shares in the last quarter. Allworth Financial LP grew its position in Iridium Communications by 11.2% in the fourth quarter. Allworth Financial LP now owns 5,677 shares of the technology company’s stock valued at $99,000 after acquiring an additional 572 shares during the period. Quadrant Capital Group LLC grew its holdings in shares of 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 last quarter. Finally, Pictet Asset Management Holding SA lifted its holdings in Iridium Communications by 5.3% during the 1st 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. Institutional investors and hedge funds own 84.36% of the company’s stock.

Iridium Communications Company Profile

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.