Iridium Communications (NASDAQ:IRDM) Shares Gap Up After Earnings Beat

Shares of Iridium Communications Inc. (NASDAQ:IRDM - Get Free Report) 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 trading hands.

The technology company reported $0.31 earnings per share for the quarter, topping analysts' consensus estimates of $0.15 by $0.16. Iridium Communications had a net margin of 14.09% and a return on equity of 14.34%. The company had revenue of $212.99 million during the quarter, compared to analyst estimates of $203.78 million.

Iridium Communications Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, December 31st. Shareholders of record on Monday, December 16th were issued a dividend of $0.14 per share. The ex-dividend date of this dividend was Monday, December 16th. This represents a $0.56 dividend on an annualized basis and a yield of 1.77%. Iridium Communications's dividend payout ratio is currently 59.58%.

Analyst Upgrades and Downgrades

IRDM has been the subject of a number of analyst reports. Cantor Fitzgerald initiated coverage on Iridium Communications in a research note on Friday, January 24th. They set an "overweight" rating and a $40.00 price objective for the company. BWS Financial reissued a "neutral" rating and set a $30.00 price target on shares of Iridium Communications in a research report on Monday, October 21st.

Insider Transactions at Iridium Communications

In related news, Director Thomas Fitzpatrick sold 12,500 shares of the stock in a transaction that occurred on Friday, January 10th. The shares were sold at an average price of $28.53, for a total value of $356,625.00. Following the completion of the transaction, the director now directly owns 241,030 shares of the company's stock, valued at $6,876,585.90. This trade represents a 4.93 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Insiders own 2.00% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. Plato Investment Management Ltd purchased a new stake in shares of Iridium Communications during the fourth quarter valued at $32,000. SBI Securities Co. Ltd. acquired a new position in shares of Iridium Communications in the 4th quarter valued at $37,000. Pinnacle Holdings LLC increased its position in shares of Iridium Communications by 45.4% in the 4th quarter. Pinnacle Holdings LLC now owns 1,528 shares of the technology company's stock valued at $44,000 after acquiring an additional 477 shares during the period. Capital Performance Advisors LLP purchased a new position in shares of Iridium Communications in the third quarter worth about $57,000. Finally, Fifth Third Bancorp raised its stake in shares of Iridium Communications by 19.8% in the fourth quarter. Fifth Third Bancorp now owns 2,162 shares of the technology company's stock worth $63,000 after purchasing an additional 357 shares during the last quarter. Institutional investors and hedge funds own 84.36% of the company's stock.

Iridium Communications Stock Performance

The stock has a market capitalization of $3.60 billion, a PE ratio of 33.65 and a beta of 0.65. The company has a quick ratio of 2.01, a current ratio of 2.62 and a debt-to-equity ratio of 2.68. The firm has a 50 day moving average price of $29.18 and a 200-day moving average price of $28.85.

About Iridium Communications

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.