Iridium Communications (NASDAQ:IRDM) Downgraded by Zacks Investment Research to Hold

Zacks Investment Research lowered shares of Iridium Communications (NASDAQ:IRDM) from a strong-buy rating to a hold rating in a research note published on Tuesday, Zacks.com reports. Zacks Investment Research currently has $47.00 target price on the technology company’s stock.

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

Shares of IRDM opened at $43.79 on Tuesday. The business’s fifty day moving average price is $42.44 and its 200 day moving average price is $40.23. Iridium Communications has a 12-month low of $23.65 and a 12-month high of $54.65. The stock has a market capitalization of $5.78 billion, a PE ratio of -437.86 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.

Iridium Communications (NASDAQ:IRDM) last announced its quarterly earnings data on Monday, July 19th. The technology company reported $0.03 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of ($0.06) by $0.09. Iridium Communications had a negative return on equity of 0.96% and a negative net margin of 2.23%. The firm had revenue of $149.92 million for the quarter, compared to analysts’ expectations of $148.53 million. During the same period last year, the business posted ($0.09) earnings per share. The firm’s revenue for the quarter was up 7.0% on a year-over-year basis. As a group, research analysts anticipate that Iridium Communications will post -0.1 earnings per share for the current fiscal year.

In other Iridium Communications news, VP Timothy Kapalka sold 2,112 shares of the company’s stock in a transaction that occurred on Tuesday, September 7th. The stock was sold at an average price of $48.00, for a total value of $101,376.00. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, insider Suzanne E. Mcbride sold 32,553 shares of the company’s stock in a transaction that occurred on Wednesday, July 28th. The shares were sold at an average price of $40.89, for a total value of $1,331,092.17. Following the completion of the sale, the insider now owns 106,120 shares in the company, valued at approximately $4,339,246.80. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 87,967 shares of company stock valued at $3,662,222. 2.50% of the stock is currently owned by corporate insiders.

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

About Iridium Communications

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.

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