Iridium Communications (NASDAQ:IRDM) Shares Gap Up – Here’s What Happened

Iridium Communications Inc. (NASDAQ:IRDM) gapped up prior to trading on Tuesday . The stock had previously closed at $29.72, but opened at $30.59. Iridium Communications shares last traded at $30.53, with a volume of 20,499 shares trading hands.

Wall Street Analyst Weigh In

Separately, BWS Financial reissued a “neutral” rating and set a $30.00 price target on shares of Iridium Communications in a report on Monday, October 21st. Two equities research analysts have rated the stock with a hold rating, one has given a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat, Iridium Communications has a consensus rating of “Moderate Buy” and an average price target of $41.00.

Iridium Communications Price Performance

The stock has a market cap of $3.43 billion, a PE ratio of 32.48 and a beta of 0.65. The company has a 50-day simple moving average of $29.74 and a 200-day simple moving average of $28.21. The company has a debt-to-equity ratio of 2.68, a current ratio of 2.62 and a quick ratio of 2.01.

Iridium Communications (NASDAQ:IRDM) last issued its quarterly earnings data on Thursday, October 17th. The technology company reported $0.21 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.20 by $0.01. Iridium Communications had a return on equity of 14.34% and a net margin of 14.09%. The business had revenue of $212.77 million for the quarter, compared to the consensus estimate of $205.68 million. Sell-side analysts anticipate that Iridium Communications Inc. will post 0.8 EPS for the current fiscal year.

Iridium Communications announced that its Board of Directors has initiated a stock buyback plan on Thursday, September 19th that permits the company to repurchase $500.00 million in shares. This repurchase authorization permits the technology company to reacquire up to 14.2% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s leadership believes its shares are undervalued.

Insider Transactions at Iridium Communications

In related news, insider Suzanne E. Mcbride sold 4,420 shares of the firm’s stock in a transaction dated Monday, November 4th. The stock was sold at an average price of $29.48, for a total transaction of $130,301.60. Following the completion of the transaction, the insider now owns 182,797 shares of the company’s stock, valued at $5,388,855.56. This trade represents a 2.36 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Robert H. Niehaus sold 38,355 shares of the company’s stock in a transaction on Wednesday, October 23rd. The shares were sold at an average price of $29.39, for a total value of $1,127,253.45. Following the sale, the director now directly owns 254,824 shares of the company’s stock, valued at approximately $7,489,277.36. This represents a 13.08 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 2.00% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Victory Capital Management Inc. lifted its stake in Iridium Communications by 6,491.3% during the second quarter. Victory Capital Management Inc. now owns 1,598,532 shares of the technology company’s stock worth $42,553,000 after purchasing an additional 1,574,280 shares during the period. Sumitomo Mitsui Trust Holdings Inc. grew its position in shares of Iridium Communications by 18.5% during the 2nd quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 2,475,472 shares of the technology company’s stock worth $65,897,000 after buying an additional 385,872 shares during the period. American Century Companies Inc. raised its holdings in Iridium Communications by 429.2% in the second quarter. American Century Companies Inc. now owns 334,396 shares of the technology company’s stock worth $8,902,000 after purchasing an additional 271,203 shares during the period. FMR LLC raised its stake in Iridium Communications by 26.7% during the 3rd quarter. FMR LLC now owns 942,380 shares of the technology company’s stock worth $28,695,000 after buying an additional 198,360 shares during the period. Finally, Van Berkom & Associates Inc. raised its holdings in shares of Iridium Communications by 4.6% during the second quarter. Van Berkom & Associates Inc. now owns 3,480,051 shares of the technology company’s stock worth $92,639,000 after acquiring an additional 152,232 shares during the period. 84.36% of the stock is owned by hedge funds and other institutional investors.

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.