Iridium stock: buy or sell?

IRDM stock price: $24.11 -1.43% At close on July 15th, 2019

Updated on:
July 15th, 2019

3

Iridium ended today at $24.11 and depreciated a rough -1.43%.

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

Should I buy Iridium stock?

Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. Following a trading plan helps to make decisions easier, quicker and with less hesitations. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

None of our preferred buy setups matches with Iridium 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 doesn't mean IRDM will fall in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Iridium Communications stock a buy?

Banks and financial institutions publish stock ratings everyday. At Stocks2.com, we detected 3 ratings published for IRDM stock in the last 30 days.

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 depreciated a rough -1.43% and closed at $24.11.

Shares of Iridium Communications depreciated a rough -1.43% and closed at $24.11. On Jun 27th IRDM price bounced up over the SMA of 200 days demonstrating to be a significant support for this stock. From a daily perspective, IRDM is in a short term uptrend after plotting its last bottom ($21.33, on Jun 26th) higher than the previous bottom, and its last top ($25.08, on Wednesday) also over the previous top. Now trading in between its last bottom and last top IRDM might consolidate in a plain range, waiting to break out over $25.08 or down under $21.33. On April, IRDM hit a new all time high, pushing higher than on April tops. Check different trading setups that use ATHs as triggers.

IRDM stock chart (daily)

Weekly outlook

Shares of Iridium Communications declined an unpleasant -1.43% this week. By mid June IRDM boosted a cool 5.40% in just one week. Late May IRDM plummed a frightening -5.55% in just one week.

Iridium Communications stock is trading in the range of its last top and last bottom. Loosing would mean breaking the current uptrend. Breakdowns under last bottom are selling point signals for some trading strategies. Not so far away is the last all-time high Iridium Communications marked early April, but since then it dropped a 14.62%. Since price and SMA40w lines crossed up by mid June, IRDM climbed $2.40 (11.05%).

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 167.90%, with a yearly average of 15.30%. If you had invested right after IRDM's IPO a $1,000 in Iridium stock in 2008, it would worth $1,679.00 today.

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

Iridium stock historical price chart

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

Iridium stock price target is $22.00

How much a stock will be priced tomorrow or next week is quite unpredictable 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 detected 2 price targets for Iridium Communications stock published in the last 30 days:
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%
Moving in a range from $30.00 and $14.00, the price prediction for Iridium stock is $22.00. In average, analysts' outlook on IRDM price forecast is negative, downgrading the prediction by a -12.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Iridium disappointed experts on February when it posted an Earnings per Share (EPS) of $-0.09 when the market consensus 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 sales report draw an astounding increase of 16.73% to $523.01 M USD. In contrary, its profit margin (compared to sales) plunged to -2.56%, that is $-13.38 million.

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 Communications reported $132.17 million in sales for 2018-Q4, a -3.36% less compared to previous quarter. Reported quarter earnings marked $-7.58 million with a profit margin of -5.74%. Profit margin grew a 3.66% compared to previous quarter when profit margin was -9.40%. When comparing sales to same quarter last year, Iridium sales marked an amazing gain and climbed 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 invest in a stock, it's worth to check its ownership structure.

Iridium 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:

IRDMBAGOGOGSATHRS
Market cap$2.7 B$212.8 B$398.6 M$623.5 M$21.7 B
Total shares113.2 M582.6 M87.8 M1,450.0 M117.5 M
Float shares99.3 M562.2 M47.1 M507.2 M117.5 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, July 15th, 2019
Open$24.48
Close$24.11
Day range$23.86 - $24.48
Previous close$24.46
Session gain-1.43%
Average true range$0.82
50d mov avg$23.70
100d mov avg$24.58
200d mov avg$22.40
Daily patternlt06a
Weekly pattern lt06a

Iridium performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. We compared Iridium Communications against Boeing, Gogo, Globalstar, Harris, Intelsat and ORBCOMM in the following table:
Stock3m6m12m
IRDMIridium Communica...-8.78%22.32%32.11%
BABoeing-3.22%4.64%6.28%
GOGOGogo7.58%19.47%12.38%
GSATGlobalstar2.38%-38.57%0.00%
HRSHarris12.86%40.27%30.36%
IIntelsat6.71%-15.76%-3.96%
ORBCORBCOMM13.90%-8.23%-22.79%

Iridium competitors

We chose a few stocks to conform a list of Iridium competitors to examine if you are interested in investing in IRDM: