Iridium stock: buy or sell?

IRDM stock price: $20.84 1.36% At close on May 15th, 2020

Updated on:
May 15th, 2020

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Iridium grew a fine 1.36% and closed at $20.84. On May/6 IRDM plunged a dreadful -5.74%. On May/8 IRDM boosted an extraordinary 5.31%.

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

Should I buy Iridium stock?

Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. That's why is so important to choose your own trading plan that matches with your character as inversor. At Stocks2.com, we 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, therefore 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 slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Iridium stock a buy?

Banks and financial institutions post stock ratings everyday. Unfortunately, we couldn't detect any rating for IRDM stock for the last month.

Iridium stock analysis

Daily outlook

Iridium grew a fine 1.36% and closed at $20.84.

Iridium grew a fine 1.36% and closed at $20.84. Since price and SMA200d lines crossed down on March, IRDM fell $-4.34 per share (-17.24%). Since January when SMA100d and SMA200d crossed up, IRDM price slipped $-4.44 per share (-17.56%). IRDM marked a lower low and a lower high in the short term, defining a downward trend. Climbing above $22.41 would break this short term down trend and open possibilities for reversing this situation. On February, IRDM hit a new all time high, pushing higher than on February tops. Check different trading setups that use ATHs as triggers.

IRDM stock chart (daily)

Weekly outlook

Shares of Iridium collapsed a hair-raising -6.29% this week. Early April IRDM skyrocketed a dazzling 14.46% in just one week.

Iridium Communications is in a clear downtrend, marking successive declining peaks and bottoms. Now is trading in between the - range. There is an opportunity to rebound and reverse this situation if price can hold above the level. Not so far away is the last all-time high Iridium marked by mid February, but since then it dropped a 35.04%. Since early March, when IRDM stock price broke down the 40-weeks moving avarage line, it slid $-6.52 per share (-23.83%). Trading stocks that are below the 40-weeks (that is, 200-days) moving average line is not recommended by many experts, as it indicates that the stock has not enough institutional support. Since SMA20w and SMA40w crossed up by mid January, IRDM price slid a -16.14%.

IRDM stock chart (weekly)

Iridium stock price history

Iridium IPO was on March 20th, 2008 at $9.00 per share1. Since then, IRDM stock grew a 131.60%, with a yearly average of 11.00%. If you had invested right after IRDM's IPO a $1,000 in Iridium stock in 2008, it would worth $1,316.00 today.

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

Iridium stock historical price chart

IRDM stock reached all-time highs on February with a price of $32.08.

Iridium stock price target

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. For the last 30 days we have not detected any price prediction for Iridium Communications stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

Iridium Communications disappointed analysts when it reported 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

In 2018, Iridium annual sales boosted an exceptional 16.73% to $523.01 million USD from $448.05 marked in 2017. In contrast, 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 posted $132.17 M in revenues for 2018-Q4, a -3.36% decline compared to previous quarter. Reported quarter income 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 revenues to same quarter last year, Iridium Communications sales marked an outstanding growth 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

Checking Iridium Communications ownership structure gives valuable information about the company and its governance (insider ownership) or the amount of investors that are on the short side.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Iridium Communications, 12.48% of all outstanding shares are owned by its staff.

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:

IRDM
Market cap$2.8 B
Total shares132.2 M
Float shares116.3 M
  - Institutional holdings (%)84.9%
  - Insider holdings (%)12.5%
Shares in short selling0.0%

Iridium summary

Friday, May 15th, 2020
Open$20.41
Close$20.84
Day range$20.33 - $20.87
Previous close$20.56
Session gain1.36%
Average true range$1.52
50d mov avg$22.23
100d mov avg$24.67
200d mov avg$24.17
Daily patternlb06a
Weekly pattern lt02a

Iridium performance

To better understand Iridium Communications performance you must compare its gains with other related stocks in same sector or industry. We chose as the bechmarking frame for Iridium stock.
Stock3m6m12m
IRDMIridium Communica...-33.82%-14.34%-13.17%

Iridium competitors

Unfortunately, we could not find any public company that could be defined as Iridium competitor. This doesn't mean Iridium does not have any competitor in the market, it's just we could not detected it.