IRDM Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
Iridium Communications Inc (IRDM) is not a strong buy at the moment for a beginner investor with a long-term strategy. The stock is currently facing negative sentiment from analysts, insider selling, and weak financial performance in the latest quarter. While the options data indicates a bullish sentiment with a low Put-Call ratio, the technical indicators and recent stock trends suggest limited upside potential in the short term. Given the investor's preference for long-term growth and the lack of strong positive catalysts, holding off on this stock is advisable.
The MACD histogram is negative and contracting, indicating bearish momentum. RSI is neutral at 67.371, showing no clear signal. Moving averages are converging, suggesting indecision. Key resistance levels are at 22.775, with support at 18.757. The stock is trading near resistance levels, which may limit further upside.
The company reported a 3% growth in service revenue for 2025 and achieved $495.3 million in operational EBITDA. Additionally, there is a 3% increase in billable subscribers, indicating some level of business growth.
Insider selling has increased significantly by 1012.01% in the last month, indicating a lack of confidence from insiders. The stock was downgraded by Morgan Stanley with a reduced price target of $24, citing uncertainty in the company's strategic pivot. The latest quarter financials showed significant YoY declines in revenue (-25.42%), net income (-31.58%), EPS (-22.58%), and gross margin (-36.36%).
In Q4 2025, revenue dropped to $158.9 million, down -25.42% YoY. Net income fell to $24.87 million, down -31.58% YoY. EPS decreased to $0.24, down -22.58% YoY. Gross margin also declined significantly to 30.28%, down -36.36% YoY. These metrics indicate weak financial performance.
Morgan Stanley downgraded the stock to Equal Weight from Overweight, with a reduced price target of $24 (down from $37). The downgrade reflects concerns about uncertainty in the company's strategic pivot, which could keep the stock range-bound in the near term.
