Robert H. Niehaus, a director at Iridium Communications Inc. (NASDAQ:IRDM), recently executed a notable transaction involving the company's stock. On October 23, Niehaus sold 38,355 shares of Iridium stock at a weighted average price of $29.39 per share, totaling approximately $1.13 million. The shares were sold in multiple transactions, with prices ranging from $29.14 to $29.64 per share.
In a related move, Niehaus also acquired 38,355 shares through the exercise of stock options at a price of $9.18 per share, totaling $352,098. Following these transactions, Niehaus holds 254,824.3 shares directly.
In other recent news, Iridium Communications Inc. reported a robust third quarter for 2024, with total revenue hitting $212.8 million, marking an 8% increase year-over-year. The company's operational EBITDA reached a record $124.4 million, largely driven by a 6% rise in service revenue to $133.3 million. Iridium also returned $146 million to shareholders through dividends and share repurchases.
On the outlook front, Iridium anticipates generating $1 billion in service revenue by 2030, with operational EBITDA projected between $465 million and $470 million for the full year. Further, the company expects pro forma free cash flow for 2024 to be around $300 million.
In terms of recent developments, Iridium is making strides with Project Stardust, which aims to launch Iridium NTN Direct in early 2026. The company also introduced the new Garmin (NYSE:GRMN) inReach Messenger Plus to enhance consumer satellite communication capabilities.
InvestingPro Insights
The recent insider transaction by Robert H. Niehaus at Iridium Communications Inc. (NASDAQ:IRDM) comes at a time when the company's stock has experienced significant volatility. According to InvestingPro data, Iridium's stock has taken a substantial hit over the last week, with a 1-week price total return of -11.29%. This recent downturn contributes to a year-to-date price total return of -26.55%, indicating a challenging year for the company's stock performance.
Despite the recent stock price decline, Iridium maintains a strong financial position. An InvestingPro Tip highlights that the company's liquid assets exceed its short-term obligations, suggesting a solid balance sheet. Additionally, Iridium boasts a high gross profit margin of 72.19% for the last twelve months as of Q3 2024, demonstrating efficient cost management and potential for profitability.
Investors should note that Iridium is currently trading at a P/E ratio of 30.87, which may be considered high by some standards. However, this valuation should be viewed in the context of the company's growth prospects. Another InvestingPro Tip indicates that net income is expected to grow this year, which could justify the current valuation multiple.
For those seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for Iridium Communications, providing deeper insights into the company's financial health and market position.
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