Iridium Communications (NASDAQ:IRDM) Rating Lowered to Hold at Zacks Investment Research

Iridium Communications (NASDAQ:IRDM) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research note issued on Tuesday, Zacks.com reports. They currently have a $47.00 price target on the technology company’s stock. Zacks Investment Research‘s target price would suggest a potential upside of 8.32% from the stock’s previous close.

According to Zacks, “Expanding subscriber base driven by the demand for consumer-oriented devices are tailwinds for Iridium. It expects to continue witnessing healthy momentum through 2021 and raised the outlook for service revenues. Commercial business is considered Iridium’s key long-term growth driver. It delivers cost-effective broadband services through its Certus technology and shares strategic relationships with government organizations. Iridium’s mobile and satellite network leverages the interlinked mesh architecture of 66 satellites to provide services across territories. However, supply chain disruptions due to the pandemic pose a significant headwind. Intense competition from regional market suppliers restricts its potential to attract new customers. Inept cost structure and increased lead time to obtain spectrum licenses weigh on its margins.”

IRDM has been the subject of a number of other research reports. Barclays raised shares of Iridium Communications from an “underweight” rating to an “equal weight” rating and boosted their price objective for the company from $35.50 to $40.00 in a research report on Monday, July 26th. Morgan Stanley started coverage on shares of Iridium Communications in a research report on Tuesday, August 3rd. They issued an “overweight” rating and a $50.00 price objective for the company. Four analysts have rated the stock with a hold rating and two have issued a buy rating to the stock. According to data from MarketBeat.com, Iridium Communications currently has an average rating of “Hold” and a consensus price target of $43.60.

Shares of NASDAQ IRDM traded down $0.17 on Tuesday, hitting $43.39. The company’s stock had a trading volume of 38,551 shares, compared to its average volume of 1,121,268. Iridium Communications has a 12-month low of $23.65 and a 12-month high of $54.65. The company has a market capitalization of $5.72 billion, a price-to-earnings ratio of -434.96 and a beta of 1.10. The company has a debt-to-equity ratio of 1.21, a current ratio of 3.70 and a quick ratio of 3.38. The stock has a 50 day moving average of $42.34 and a 200-day moving average of $40.19.

Iridium Communications (NASDAQ:IRDM) last posted its quarterly earnings data on Monday, July 19th. The technology company reported $0.03 earnings per share for the quarter, beating analysts’ consensus estimates of ($0.06) by $0.09. The business had revenue of $149.92 million during the quarter, compared to analyst estimates of $148.53 million. Iridium Communications had a negative net margin of 2.23% and a negative return on equity of 0.96%. The company’s revenue was up 7.0% on a year-over-year basis. During the same quarter in the previous year, the business posted ($0.09) earnings per share. Sell-side analysts expect that Iridium Communications will post -0.1 EPS for the current fiscal year.

In other news, EVP Bryan J. Hartin sold 19,596 shares of the company’s stock in a transaction on Thursday, July 29th. The shares were sold at an average price of $41.02, for a total value of $803,827.92. Following the completion of the transaction, the executive vice president now directly owns 63,064 shares in the company, valued at $2,586,885.28. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Suzanne E. Mcbride sold 32,553 shares of the company’s stock in a transaction on Wednesday, July 28th. The shares were sold at an average price of $40.89, for a total transaction of $1,331,092.17. Following the completion of the transaction, the insider now owns 106,120 shares of the company’s stock, valued at $4,339,246.80. The disclosure for this sale can be found here. Insiders sold 87,967 shares of company stock valued at $3,662,222 in the last three months. Company insiders own 2.50% of the company’s stock.

Hedge funds and other institutional investors have recently bought and sold shares of the business. Berman Capital Advisors LLC boosted its stake in Iridium Communications by 61.4% during the 1st quarter. Berman Capital Advisors LLC now owns 915 shares of the technology company’s stock valued at $37,000 after acquiring an additional 348 shares during the last quarter. Albion Financial Group UT bought a new position in Iridium Communications during the 2nd quarter valued at $40,000. Maverick Capital Ltd. bought a new position in Iridium Communications during the 1st quarter valued at $91,000. Occudo Quantitative Strategies LP bought a new position in Iridium Communications during the 1st quarter valued at $206,000. Finally, Advisor Partners LLC bought a new position in Iridium Communications during the 1st quarter valued at $212,000. Hedge funds and other institutional investors own 84.51% of the company’s stock.

Iridium Communications Company Profile

Iridium Communications, Inc is a mobile voice and data satellite communications network. Its satellite network provides communication where terrestrial wireless or wireline networks do not exist or are limited. The company’s principal lines of business include Land Mobile, Maritime, Aviation, IoT Data Services, Hosted Payloads and Other Data Services, and Government.

Further Reading: Institutional Investors

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