Iridium Communications ( (IRDM) ) is experiencing volatility. Read on for a possible explanation for the stock’s unusual movement.
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Iridium Communications shares are jumping as investors react to its move to buy the remaining 61 percent of aviation safety firm Aireon LLC, turning it into a wholly owned subsidiary and tightening control over a key growth asset. The rally comes even as the stock has faced recent valuation-based analyst downgrades, suggesting the market is looking past those concerns.
Sentiment is getting an extra lift from governance and capital-return news, after shareholders at the May 20 annual meeting approved an updated equity incentive plan and the board announced a quarterly cash dividend of $0.15 per share. The stock is now pushing toward its 52-week high, underscoring growing confidence in Iridium’s expansion strategy and its willingness to return cash to investors.
More about Iridium Communications
YTD Price Performance: 164.47%
Average Trading Volume: 2,274,564
Technical Sentiment Signal: Buy
Current Market Cap: $4.79B
For further insights into IRDM stock on TipRanks’ Stock Analysis page.
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