Iridium Communications (NASDAQ:IRDM) to Buyback $500.00 million in Stock

Iridium Communications (NASDAQ:IRDM) announced that its Board of Directors has initiated a stock repurchase plan on Thursday, September 19th, RTT News reports. The company plans to buyback $500.00 million in outstanding shares. This buyback authorization authorizes the technology company to reacquire up to 14.2% of its shares through open market purchases. Shares buyback plans are often a sign that the company’s management believes its shares are undervalued.

Iridium Communications Stock Performance

NASDAQ:IRDM traded up $1.20 during trading hours on Friday, reaching $29.08. The company had a trading volume of 915,971 shares, compared to its average volume of 1,058,836. The firm has a market cap of $3.53 billion, a PE ratio of 138.10 and a beta of 0.64. Iridium Communications has a 1-year low of $24.14 and a 1-year high of $48.71. The business’s 50 day moving average price is $27.01 and its 200-day moving average price is $27.51. The company has a debt-to-equity ratio of 2.08, a current ratio of 2.25 and a quick ratio of 1.52.

Iridium Communications (NASDAQ:IRDM) last issued its quarterly earnings data on Tuesday, July 23rd. The technology company reported $0.27 earnings per share for the quarter, topping analysts’ consensus estimates of $0.17 by $0.10. Iridium Communications had a net margin of 11.08% and a return on equity of 10.23%. The business had revenue of $201.07 million during the quarter, compared to the consensus estimate of $204.01 million. During the same quarter in the prior year, the firm posted ($0.24) earnings per share. The company’s revenue was up 4.1% compared to the same quarter last year. Research analysts forecast that Iridium Communications will post 0.81 EPS for the current year.

Iridium Communications Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, September 30th. Investors of record on Friday, September 13th will be issued a $0.14 dividend. This represents a $0.56 annualized dividend and a yield of 1.93%. The ex-dividend date is Friday, September 13th. Iridium Communications’s payout ratio is presently 266.67%.

Analysts Set New Price Targets

A number of brokerages recently weighed in on IRDM. BWS Financial reaffirmed a “neutral” rating and set a $30.00 price objective on shares of Iridium Communications in a research report on Wednesday, July 24th. Barclays boosted their price objective on shares of Iridium Communications from $44.00 to $45.00 and gave the stock an “overweight” rating in a research note on Wednesday, July 24th. Three equities research analysts have rated the stock with a hold rating, one has assigned a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $41.00.

Iridium Communications Company Profile

Iridium Communications Inc provides mobile voice and data communications services and products to businesses, the United States and international governments, non-governmental organizations, and consumers worldwide. The company offers postpaid mobile voice and data satellite communications; prepaid mobile voice satellite communications; push-to-talk; broadband data; and Internet of Things (IoT) services.