Trade-Ideas LLC identified Iridium Communications ( IRDM) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Iridium Communications as such a stock due to the following factors:

  • IRDM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.7 million.
  • IRDM has traded 73,034 shares today.
  • IRDM is trading at 2.56 times the normal volume for the stock at this time of day.
  • IRDM is trading at a new low 6.02% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on IRDM:

Iridium Communications Inc. provides mobile voice and data communications services through satellite to businesses, the U.S. and foreign governments, non-governmental organizations, and consumers worldwide. IRDM has a PE ratio of 8. Currently there are 2 analysts that rate Iridium Communications a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Iridium Communications has been 733,500 shares per day over the past 30 days. Iridium has a market cap of $711.2 million and is part of the technology sector and telecommunications industry. The stock has a beta of 2.05 and a short float of 26.5% with 26.12 days to cover. Shares are down 17.1% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Iridium Communications as a buy. The company's strengths can be seen in multiple areas, such as its expanding profit margins, good cash flow from operations, impressive record of earnings per share growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • The gross profit margin for IRIDIUM COMMUNICATIONS INC is currently very high, coming in at 75.90%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 27.86% significantly outperformed against the industry average.
  • Net operating cash flow has increased to $70.22 million or 13.01% when compared to the same quarter last year. Despite an increase in cash flow, IRIDIUM COMMUNICATIONS INC's cash flow growth rate is still lower than the industry average growth rate of 45.51%.
  • Even though the current debt-to-equity ratio is 1.11, it is still below the industry average, suggesting that this level of debt is acceptable within the Diversified Telecommunication Services industry. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 5.03 is very high and demonstrates very strong liquidity.
  • IRIDIUM COMMUNICATIONS INC has improved earnings per share by 41.2% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, IRIDIUM COMMUNICATIONS INC reported lower earnings of $0.69 versus $0.72 in the prior year. This year, the market expects an improvement in earnings ($0.81 versus $0.69).
  • IRDM, with its decline in revenue, underperformed when compared the industry average of 16.5%. Since the same quarter one year prior, revenues slightly dropped by 1.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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