Iridium Communications Sees Unusually Large Options Volume (NASDAQ:IRDM)

Iridium Communications Inc (NASDAQ:IRDM) saw some unusual options trading activity on Thursday. Traders acquired 4,875 call options on the stock. This represents an increase of 144% compared to the average volume of 1,999 call options.

Iridium Communications Price Performance

Shares of IRDM opened at $21.79 on Friday. The company has a market cap of $2.28 billion, a P/E ratio of 19.28, a PEG ratio of 1.19 and a beta of 0.55. Iridium Communications has a fifty-two week low of $15.65 and a fifty-two week high of $34.45. The company has a quick ratio of 1.93, a current ratio of 2.67 and a debt-to-equity ratio of 4.02. The firm’s 50 day moving average price is $17.71 and its 200 day moving average price is $20.71.

Iridium Communications (NASDAQ:IRDM) last posted its quarterly earnings results on Thursday, October 23rd. The technology company reported $0.35 EPS for the quarter, topping the consensus estimate of $0.26 by $0.09. The business had revenue of $226.94 million during the quarter, compared to the consensus estimate of $222.13 million. Iridium Communications had a net margin of 14.44% and a return on equity of 24.93%. The company’s quarterly revenue was up 6.6% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.21 earnings per share. On average, research analysts forecast that Iridium Communications will post 0.89 earnings per share for the current fiscal year.

Iridium Communications Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, December 31st. Shareholders of record on Monday, December 15th were given a $0.15 dividend. The ex-dividend date of this dividend was Monday, December 15th. This represents a $0.60 dividend on an annualized basis and a yield of 2.8%. Iridium Communications’s dividend payout ratio (DPR) is currently 53.10%.

Insider Buying and Selling at Iridium Communications

In other Iridium Communications news, CEO Matthew J. Desch acquired 20,000 shares of the firm’s stock in a transaction that occurred on Thursday, October 30th. The shares were purchased at an average cost of $17.33 per share, for a total transaction of $346,600.00. Following the completion of the acquisition, the chief executive officer owned 1,127,019 shares of the company’s stock, valued at approximately $19,531,239.27. The trade was a 1.81% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Thomas Fitzpatrick sold 20,839 shares of the firm’s stock in a transaction on Friday, October 31st. The stock was sold at an average price of $18.00, for a total value of $375,102.00. Following the sale, the director directly owned 231,034 shares of the company’s stock, valued at approximately $4,158,612. This trade represents a 8.27% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 30,967 shares of company stock worth $557,406 in the last ninety days. 2.40% of the stock is owned by insiders.

Hedge Funds Weigh In On Iridium Communications

Institutional investors and hedge funds have recently made changes to their positions in the stock. Hantz Financial Services Inc. lifted its stake in Iridium Communications by 184.7% in the third quarter. Hantz Financial Services Inc. now owns 1,506 shares of the technology company’s stock worth $26,000 after acquiring an additional 977 shares during the last quarter. Larson Financial Group LLC raised its holdings in shares of Iridium Communications by 392.8% in the 3rd quarter. Larson Financial Group LLC now owns 1,508 shares of the technology company’s stock valued at $26,000 after purchasing an additional 1,202 shares in the last quarter. CIBC Private Wealth Group LLC acquired a new stake in shares of Iridium Communications in the 3rd quarter valued at $32,000. Aster Capital Management DIFC Ltd purchased a new stake in shares of Iridium Communications during the 3rd quarter worth $46,000. Finally, Advisory Services Network LLC purchased a new stake in shares of Iridium Communications during the 3rd quarter worth $48,000. 84.36% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently weighed in on the company. Weiss Ratings cut Iridium Communications from a “hold (c-)” rating to a “sell (d+)” rating in a report on Saturday, October 25th. Morgan Stanley reaffirmed an “equal weight” rating and set a $24.00 target price (down previously from $37.00) on shares of Iridium Communications in a research note on Friday, January 16th. Barclays reduced their price target on shares of Iridium Communications from $31.00 to $25.00 and set an “overweight” rating on the stock in a research note on Wednesday, October 1st. Finally, BWS Financial reaffirmed a “sell” rating and set a $16.00 price objective on shares of Iridium Communications in a research report on Friday, October 24th. Five equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $27.50.

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.