Y Intercept Hong Kong Ltd significantly increased its holdings in Iridium Communications Inc, raising its stake by an astonishing 2,459.5% during the third quarter of 2023. This information comes from the company’s recent Form 13F filing with the Securities and Exchange Commission. Following the acquisition of an additional 331,738 shares, Y Intercept now owns 345,226 shares of the technology company, valued at approximately $6.03 million.
Several other institutional investors also made notable adjustments to their positions in Iridium Communications during the quarter. Pacer Advisors Inc. increased its stake by 74.5%, owning now 1,744,095 shares worth about $30.45 million after purchasing an extra 744,836 shares. Meanwhile, Synergy Asset Management LLC acquired a new position valued at $19.98 million in the second quarter, while Norges Bank bought shares valued at around $16.30 million during the same period. Silver Heights Capital Management Inc. raised its stake by 13.5%, now holding 4,228,263 shares worth $127.57 million. American Century Companies Inc. also increased its ownership by 20.1% with 2,640,658 shares valued at approximately $79.67 million. Collectively, institutional investors and hedge funds own 84.36% of Iridium Communications.
Analyst Ratings and Insider Transactions
Analysts have weighed in on Iridium Communications’ stock performance. In a recent note, BWS Financial maintained a “sell” rating with a price target of $16.00. Morgan Stanley adjusted its rating to “equal weight,” setting a target of $24.00, down from a previous estimate of $37.00. Barclays also lowered its price target from $31.00 to $25.00 while keeping an “overweight” rating. According to MarketBeat.com, the average rating for Iridium Communications is currently “Hold,” with an average target price of $25.00.
In addition to institutional movements, insider transactions have also occurred. On October 30, 2023, CEO Matthew J. Desch purchased 20,000 shares at an average price of $17.33, totaling $346,600. Following this acquisition, Desch’s total ownership increased to 1,127,019 shares, valued at approximately $19.53 million. Director Robert H. Niehaus also acquired 30,000 shares on October 28, 2023, purchasing at an average price of $17.49, with a total transaction value of $524,700. After this buy, Niehaus owns 297,363 shares, valued at around $5.20 million. Insiders have sold 30,967 shares worth $557,406 in the last quarter.
Iridium Communications Financial Performance
On October 23, 2023, Iridium Communications reported its quarterly earnings, revealing earnings per share (EPS) of $0.35, surpassing the consensus estimate of $0.26 by $0.09. The company generated revenue of $226.94 million, exceeding analysts’ expectations of $222.13 million. The firm experienced a 6.6% increase in revenue compared to the same quarter last year, when it reported an EPS of $0.21. Analysts currently predict that Iridium Communications will post an EPS of $0.89 for the current fiscal year.
Additionally, the company has declared a quarterly dividend of $0.15 per share, which was paid on December 31, 2023 to stockholders recorded by December 15, 2023. This establishes an annualized dividend of $0.60 and a dividend yield of 2.8%. The dividend payout ratio currently stands at 53.10%.
Iridium Communications operates a global satellite communications network, providing voice and data services across various sectors, including maritime shipping, aviation, and government. With a market capitalization of $2.28 billion, the company maintains a P/E ratio of 19.27 and a beta of 0.55. As of now, Iridium Communications is positioned to continue its growth trajectory in the satellite communication sector.
