Iridium stock: buy or sell?

IRDM stock price: $22.21 -1.64% At close on September 20th, 2019

Updated on:
September 20th, 2019

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Iridium shares slightly fell -1.64% to $22.21 today. With Friday it's been 5 red days in a row. On Tuesday IRDM collapsed a bloodcurdling -5.92%. On Sep 11th IRDM skyrocketed a dazzling 5.97%.

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 strategy that fits your character as inversor. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

Currently, Iridium Communications stock doesn't match any of these trading strategies, so our recommendation is not to buy.

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 Communications stock a buy?

Banks and financial institutions post stock ratings everyday. At Stocks2.com, we gathered 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

Iridium shares slightly fell -1.64% to $22.21 today.

Iridium shares slightly fell -1.64% to $22.21 today. Since Sep 13th when SMA50d and SMA100d crossed up, IRDM price slipped $-4.61 per share (-17.19%).

IRDM stock chart (daily)

Weekly outlook

After boosting a dazzling 6.07% in a week last week, Iridium closed this week at $22.21 and plunged a hair-raising -16.31%. This week broke a green streak of 4 weeks.

Far behind is the all-time high Iridium Communications marked early April and since then the price is -21.35% below that top. Since SMA10w and SMA20w crossed up last week, IRDM price slid a -10.91%.

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 146.80%, with an average of 13.30% per year. If you had invested right after IRDM's IPO a $1,000 in Iridium stock in 2008, it would worth $1,468.00 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

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. You should not follow the analysts' IRDM stock price predictions in the hope that they will be met as they may be wrong and not met. For the last month we found 2 price forecasts for Iridium stock:
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 Communications stock is $22.00, moving in a range between $30.00 and $14.00. In average, analysts' outlook on IRDM price target is negative, downsizing the target by a -12.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

On February, Iridium Communications didn't meet the expectations of the analysts and posted a frightening EPS of $-0.09 per share when experts were expecting $-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 Communications annual turnover boosted a super good 16.73% to $523.01 M dollars from $448.05 marked in 2017. Nonetheless, its income margin (compared to revenues) plummed 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 revenues for 2018-Q4, a -3.36% less compared to previous quarter. Reported quarter income marked $-7.58 M 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 revenues to same quarter last year, Iridium sales marked an extraordinary 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

When you are planning to buy shares of a company, it's always worth to review 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.

For a better understanding, the following table shows ownership data compared to other related stocks:

IRDMBAGOGOGSATI
Market cap$2.9 B$216.3 B$572.5 M$594.5 M$3.3 B
Total shares130.8 M562.7 M88.1 M1,450.0 M140.7 M
Float shares114.8 M562.0 M49.2 M507.2 M73.3 M
  - Institutional holdings (%)98.6%70.6%59.3%27.9%67.3%
  - Insider holdings (%)14.0%0.1%37.0%58.1%45.1%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

Iridium summary

Friday, September 20th, 2019
Open$22.55
Close$22.21
Day range$22.07 - $22.69
Previous close$22.58
Session gain-1.64%
Average true range$1.20
50d mov avg$24.04
100d mov avg$23.92
200d mov avg$23.16
Daily patternlt06c
Weekly pattern

Iridium performance

To better understand Iridium Communications performance you must becnhmark its gains with other related stocks in same sector or industry. For Iridium, the comparison is made against Boeing, Gogo, Globalstar, Intelsat and ORBCOMM.
Stock3m6m12m
IRDMIridium Communica...-4.68%-15.87%10.77%
BABoeing4.03%7.42%5.53%
GOGOGogo49.43%39.19%19.71%
GSATGlobalstar-25.45%-4.65%-18.00%
IIntelsat20.84%50.70%5.28%
ORBCORBCOMM-26.91%-20.51%-52.05%

Iridium competitors

One check before investing in any stock is to review a list of its competitors, in this case for Iridium Communications. We picked 5 companies as Iridium Communications competitors as they are in the same industry or have similar market objectives.