Iridium stock: buy or sell?
May 15th, 2020
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.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
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
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.
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%.
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 targetPredicting 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 ShareIridium Communications disappointed analysts when it reported an Earnings per Share (EPS) of $-0.09 when the analysts' forecast was $-0.16.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsIn 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.
|2013||$383 M||-||$62 M16.3%||-|
|2014||$409 M||6.77%||$75 M18.4%||20.04%|
|2015||$411 M||0.69%||$7.12 M1.7%||-90.50%|
|2016||$434 M||5.41%||$111 M25.6%||1,458.78%|
|2017||$448 M||3.32%||$234 M52.2%||110.62%|
|2018||$523 M||16.73%||$-13.38 M-2.6%||-105.72%|
Quarterly financial resultsIridium 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%.
|2017-Q2||$112 M||-||$24.78 M22.2%||-|
|2017-Q3||$117 M||4.44%||$29.23 M25.1%||17.96%|
|2017-Q4||$115 M||-0.93%||$141.88 M122.9%||385.38%|
|2018-Q1||$119 M||3.19%||$11.47 M9.6%||-91.91%|
|2018-Q2||$135 M||13.25%||$-4.42 M-3.3%||-138.51%|
|2018-Q3||$137 M||1.36%||$-12.86 M-9.4%||190.99%|
|2018-Q4||$132 M||-3.36%||$-7.58 M-5.7%||-41.02%|
|2019-Q1||$134 M||1.15%||$-18.02 M-13.5%||137.72%|
Iridium ownershipChecking 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:
|Market cap||$2.8 B|
|Total shares||132.2 M|
|Float shares||116.3 M|
|- Institutional holdings (%)||84.9%|
|- Insider holdings (%)||12.5%|
|Shares in short selling||0.0%|
|Friday, May 15th, 2020|
|Day range||$20.33 - $20.87|
|Average true range||$1.52|
|50d mov avg||$22.23|
|100d mov avg||$24.67|
|200d mov avg||$24.17|
Iridium performanceTo 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.