Considering Iridium Communications Inc. (IRDM) as a potential investment: What Should You Do?

The price of Iridium Communications Inc. (NASDAQ: IRDM) closed at $60.99 in the last session, up 0.64% from day before closing price of $60.60. In other words, the price has increased by $+0.39 from its previous closing price. On the day, 983974 shares were traded. IRDM stock price reached its highest trading level at $61.32 during the session, while it also had its lowest trading level at $59.18.

From Robots to Self-Driving Cars: 5 AI Stocks to Consider for Your Portfolio

The artificial intelligence (AI) revolution is already here and it's about to change everything we know about everything. With the global market for AI projected to grow from $137 billion in 2022 to over $1.81 trillion by 2030, there's never been a better time to invest in this burgeoning industry. That's why we've compiled a list of the Top 5 AI Stocks to Buy for 2023. These companies are at the forefront of the AI revolution, and have the potential to deliver huge returns to investors like you.

Get our free report, "Top 5 AI Stocks to Buy for 2023".



We take a closer look at IRDM’s different ratios to gain a better understanding of the stock. For the most recent quarter (mrq), Quick Ratio is recorded 1.90 and its Current Ratio is at 2.20. In the meantime, Its Debt-to-Equity ratio is 1.32 whereas as Long-Term Debt/Eq ratio is at 1.30.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for the company, Barclays on October 19, 2022, Downgraded its rating to Equal Weight and sets its target price to $45 from $48 previously.

On February 22, 2022, Barclays Upgraded its rating to Overweight which previously was Equal Weight but kept the price unchanged to $47.

Raymond James Upgraded its Outperform to Strong Buy on February 18, 2022, whereas the target price for the stock was revised from $47 to $51.

Insider Transactions:

An investor can also benefit from insider trades by learning what management is thinking about the future direction of stock prices. A recent insider transaction in this stock occurred on Mar 14 when WEST BARRY sold 4,564 shares for $60.50 per share. The transaction valued at 276,122 led to the insider holds 52,455 shares of the business.

Scheimreif Scott sold 96,348 shares of IRDM for $5,760,647 on Mar 13. The EVP-Government Programs now owns 138,637 shares after completing the transaction at $59.79 per share. On Mar 03, another insider, McBride Suzanne E., who serves as the Chief Operations Officer of the company, sold 2,000 shares for $61.85 each. As a result, the insider received 123,700 and left with 135,251 shares of the company.

Valuation Measures:

As of this moment, Iridium’s Price-to-Earnings (P/E) ratio for their current fiscal year is 910.30, and their Forward P/E ratio for the next fiscal year is 243.96. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 91.03. For the stock, the TTM Price-to-Sale (P/S) ratio is 10.78 while its Price-to-Book (P/B) ratio in mrq is 6.85.

Stock Price History:

Over the past 52 weeks, IRDM has reached a high of $65.41, while it has fallen to a 52-week low of $32.88. The 50-Day Moving Average of the stock is 59.67, while the 200-Day Moving Average is calculated to be 48.85.

Shares Statistics:

According to the various share statistics, IRDM traded on average about 681.87K shares per day over the past 3-months and 817.31k shares per day over the past 10 days. A total of 126.62M shares are outstanding, with a floating share count of 112.74M. Insiders hold about 1.50% of the company’s shares, while institutions hold 85.80% stake in the company. Shares short for IRDM as of Jan 30, 2023 were 3.45M with a Short Ratio of 3.78M, compared to 3.9M on Dec 29, 2022. Therefore, it implies a Short% of Shares Outstanding of 2.74% and a Short% of Float of 3.63%.

Earnings Estimates

The company has 4 analysts who recommend its stock at the moment. On average, analysts expect EPS of $0 for the current quarter, with a high estimate of $0.01 and a low estimate of -$0.02, while EPS last year was -$0.04. The consensus estimate for the next quarter is $0.01, with high estimates of $0.04 and low estimates of $0.

Analysts are recommending an EPS of between $0.09 and $0.06 for the fiscal current year, implying an average EPS of $0.07. EPS for the following year is $0.17, with 4 analysts recommending between $0.37 and $0.06.

Revenue Estimates

According to 4 analysts, the current quarter’s revenue is expected to be $174.26M. It ranges from a high estimate of $179.49M to a low estimate of $168.18M. As of the current estimate, Iridium Communications Inc.’s year-ago sales were $155.89M, an estimated increase of 11.80% from the year-ago figure. For the next quarter, 3 analysts are estimating revenue of $182.87M, an increase of 8.70% less than the figure of $11.80% in the same quarter last year. There is a high estimate of $186.67M for the next quarter, whereas the lowest estimate is $178.13M.

A total of 6 analysts have provided revenue estimates for IRDM’s current fiscal year. The highest revenue estimate was $715.1M, while the lowest revenue estimate was $695.38M, resulting in an average revenue estimate of $705M. In the same quarter a year ago, actual revenue was $614.5M, up 14.70% from the average estimate. Based on 6 analysts’ estimates, the company’s revenue will be $753.4M in the next fiscal year. The high estimate is $779.24M and the low estimate is $726.73M. The average revenue growth estimate for next year is up 6.90% from the average revenue estimate for this year.