What Happened?
Shares of satellite communications provider jumped 2.4% in the afternoon session after investors reacted positively to news from competitor SpaceX's Starlink division, which announced plans to improve space safety.
Starlink stated it would reconfigure its satellite constellation by lowering its satellites from an orbit of around 550 kilometers to 480 kilometers over the course of 2026. This move was intended to increase safety in space. A safer orbital environment is beneficial for all satellite operators, including Iridium, as it lowers the risk of potential collisions and debris that could damage valuable assets. This development appeared to create a more stable and secure operating landscape for the entire industry.
After the initial pop the shares cooled down to $17.90, up 3% from previous close.
Is now the time to buy Iridium? Access our full analysis report here.
What Is The Market Telling Us
Iridium’s shares are very volatile and have had 23 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 11 days ago when the stock gained 7.3% on the news that the stock's positive momentum continued as the company was added to the S&P 600 index, a list of small-cap companies.
This change came as part of an index rebalancing where Iridium was moved from the S&P 400 Communication Services index. The move to the S&P 600 was significant because investment funds that track this index were then required to buy shares of Iridium to properly mirror the index's holdings. This mandatory buying from institutional funds created increased demand for the stock, which in turn pushed its price higher.
Investors who bought $1,000 worth of Iridium’s shares 5 years ago would now be looking at an investment worth $461.69.
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