Iridium Communications (NASDAQ:IRDM) Initiates Stock Buyback Plan

Iridium Communications (NASDAQ:IRDM) declared that its board has authorized a stock buyback plan on Thursday, September 19th, RTT News reports. The company plans to repurchase $500.00 million in shares. This repurchase authorization authorizes the technology company to buy up to 14.2% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s leadership believes its shares are undervalued.

Wall Street Analyst Weigh In

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

Iridium Communications Trading Up 4.8 %

IRDM opened at $29.22 on Friday. The company’s 50 day moving average is $27.01 and its 200-day moving average is $27.51. Iridium Communications has a 1-year low of $24.14 and a 1-year high of $48.71. The company has a current ratio of 2.25, a quick ratio of 1.52 and a debt-to-equity ratio of 2.08. The company has a market cap of $3.55 billion, a P/E ratio of 139.00 and a beta of 0.64.

Iridium Communications (NASDAQ:IRDM) last posted its quarterly earnings results on Tuesday, July 23rd. The technology company reported $0.27 earnings per share for the quarter, beating 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 company had revenue of $201.07 million for the quarter, compared to the consensus estimate of $204.01 million. During the same period last year, the company posted ($0.24) EPS. The firm’s quarterly revenue was up 4.1% compared to the same quarter last year. Equities research analysts predict that Iridium Communications will post 0.81 earnings per share for the current fiscal year.

Iridium Communications Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, September 30th. Stockholders of record on Friday, September 13th will be paid a $0.14 dividend. The ex-dividend date is Friday, September 13th. This represents a $0.56 dividend on an annualized basis and a dividend yield of 1.92%. Iridium Communications’s payout ratio is currently 266.67%.

About Iridium Communications

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.