Iridium stock: buy or sell?

IRDM stock price: $23.22 -3.25% At close on May 20th, 2019

Updated on:
May 20th, 2019

1

Iridium Communications dropped a godawful -3.25% and closed at $23.22. On May/13 IRDM collapsed a chilling -8.41%. Monday was the third red session in a row, sliding in full a -7.08%.

Iridium Communications Inc. provides mobile voice and data communications services through satellite to businesses, the U.

Should I buy Iridium stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. That's why is so important to define your own trading plan that matches with your character as inversor. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

None of our preferred buy setups matches with Iridium Communications stock situation right now, hence this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is Iridium stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we collected 3 ratings published for IRDM stock in the last month.

Is IRDM a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-4-24Raymond JamesStrong-BuyOutperform
2019-3-20Northland Securitiesn/aSell
2019-3-1Northland Securitiesn/aSell

Iridium stock analysis

Daily outlook

Shares of Iridium Communications dropped a godawful -3.25% and closed at $23.22.

Iridium shares dropped -3.25% to $23.22 today. Since price and SMA200d lines crossed up on December, IRDM climbed $6.28 (37.07%). Since SMA50d and SMA100d crossed up on March, IRDM price slid a -1.48%. On April/12, IRDM hit new all time highs, pushing higher previous ATH of $28.22 recorded on Apr 8th. New ATHs are usual entry points for many trading setups as there aren't higher resistences.

IRDM stock chart (daily)

Weekly outlook

After sliding a dreadful -13.29% in a week last week, Iridium Communications closed this week at $23.22 and eased a fatal -3.25%. This was the 3rd red week in a row, sliding in full a -15.36%.

IRDM marked an uptrend of rising tops and rising bottoms. Since its last top early April at $28.24, price slid and bounced up back from $25.86. Breaking down under $25.86 would cancel the current uptrend and it might test lower supports. Note that $28.24 might act as a resistance line. Not so far away is the last price record Iridium marked early April, but since then it dropped a 17.78%. Since late January when IRDM stock price broke up the SMA40w line, it gained $4.51 (24.10%). Early March, SMA10w and SMA20w crossed up triggering a rise of 0.30%.

IRDM stock chart (weekly)

Iridium stock price history

Iridium stock went public on March 20th, 2008 with a price of $9.001. Since then, IRDM stock grew a 158.00%, with a yearly average of 14.40%. If you had invested right after IRDM's IPO a $1,000 in Iridium stock in 2008, it would worth $1,580.00 today.

1: Adjusted price after possible price splits or reverse-splits.

Iridium stock historical price chart

IRDM stock reached all-time highs on April 12th with a price of $28.24.

Iridium stock price target is $22.00

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. We have 2 price predictions for IRDM stock posted in the last month:
IRDM stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-4-24Raymond JamesDowngrades$25.00$30.0020%
2019-3-20Northland SecuritiesReiteratesn/a$14.00-
(in average)$25.00$22.00-12.0%
The price target for Iridium stock is $22.00, moving in a range between $30.00 and $14.00. In average, analysts' outlook on IRDM price forecast is negative, reducing the forecast by a -12.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Iridium Communications failed experts on February when it published an Earnings per Share (EPS) of $-0.09 when the analysts' forecast was $-0.16.
IRDM earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.16n/a
2017-Q32017-10-260.180.2327.8%
2017-Q42018-02-220.110.08-27.3%
2018-Q12018-04-260.040.0775.0%
2018-Q22018-07-31-0.060.02n/a
2018-Q32018-10-25-0.09-0.13n/a
2018-Q42019-02-28-0.16-0.09n/a
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2017, last anual revenues report draw an extraordinary gain of 16.73% to $523.01 M dollars. When comparing 2018 vs 2017, however, profit margin (that is, the net income divided by revenues) plummed a -54.75% to -2.56%.

IRDM annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$383 M-$62 M16.3%-
2014$409 M6.77%$75 M18.4%20.04%
2015$411 M0.69%$7.12 M1.7%-90.50%
2016$434 M5.41%$111 M25.6%1,458.78%
2017$448 M3.32%$234 M52.2%110.62%
2018$523 M16.73%$-13.38 M-2.6%-105.72%

Quarterly financial results

Iridium posted $132.17 M in revenues for 2018-Q4, a -3.36% decline compared to previous quarter. Reported quarter earnings marked $-7.58 M with a profit margin of -5.74%. Profit margin raised a 3.66% compared to previous quarter when profit margin was -9.40%. When comparing sales to same quarter last year, Iridium Communications sales marked an exceptional growth and boosted a 14.46%.
IRDM quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$112 M-$24.78 M22.2%-
2017-Q3$117 M4.44%$29.23 M25.1%17.96%
2017-Q4$115 M-0.93%$141.88 M122.9%385.38%
2018-Q1$119 M3.19%$11.47 M9.6%-91.91%
2018-Q2$135 M13.25%$-4.42 M-3.3%-138.51%
2018-Q3$137 M1.36%$-12.86 M-9.4%190.99%
2018-Q4$132 M-3.36%$-7.58 M-5.7%-41.02%
2019-Q1$134 M1.15%$-18.02 M-13.5%137.72%

Iridium ownership

When you are planning to buy a stock, it's always worth to check its ownership structure.

Iridium Communications shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 13.98% of all shares.

Bearish positions for IRDM stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Iridium Communications:

IRDMBAGOGOGSATHRS
Market cap$2.6 B$199.7 B$514.5 M$783.0 M$21.6 B
Total shares113.2 M562.6 M87.8 M1,450.0 M118.1 M
Float shares98.5 M562.2 M45.7 M521.7 M117.6 M
  - Institutional holdings (%)98.6%70.6%59.3%27.9%92.7%
  - Insider holdings (%)14.0%0.1%37.0%58.1%0.4%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

Iridium summary

Monday, May 20th, 2019
Open$23.80
Close$23.22
Day range$23.10 - $23.99
Previous close$24.00
Session gain-3.25%
Average true range$1.05
50d mov avg$26.35
100d mov avg$23.21
200d mov avg$21.86
Daily pattern
Weekly pattern lb03a

Iridium performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. We selected Boeing, Gogo, Globalstar, Harris, Intelsat and ORBCOMM as the bechmarking frame for Iridium Communications stock.
Stock3m6m12m
IRDMIridium Communica...7.55%3.15%75.25%
BABoeing-14.57%6.82%3.15%
GOGOGogo55.03%17.20%10.78%
GSATGlobalstar-15.63%38.46%-19.40%
HRSHarris11.22%27.09%22.20%
IIntelsat-9.05%-18.15%48.80%
ORBCORBCOMM-21.81%-23.07%-24.76%

Iridium competitors

One check before trading any stock is to review a list of its competitors, in this case for Iridium. We picked 6 companies as Iridium competitors as they are in the same industry or have similar market objectives.