Iridium Communications (IRDM) Shares Outperformed as Expectations for Mobile Compatibility Increased
Baron Funds, an investment management company, released its “Baron Partners Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. The third quarter witnessed extreme volatility in the financial market. However, the fund outperformed the benchmark indexes and rose 10.00% (Institutional Shares) in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Baron Funds discussed stocks like Iridium Communications Inc. (NASDAQ:IRDM) in the Q3 2022 investor letter. Headquartered in McLean, Virginia, Iridium Communications Inc. (NASDAQ:IRDM) is a satellite communication company. On November 1, 2022, Iridium Communications Inc. (NASDAQ:IRDM) stock closed at $51.32 per share. One-month return of Iridium Communications Inc. (NASDAQ:IRDM) was 7.54% and its shares gained 22.39% of their value over the last 52 weeks. Iridium Communications Inc. (NASDAQ:IRDM) has a market capitalization of $6.448 billion.
Baron Funds made the following comment about Iridium Communications Inc. (NASDAQ:IRDM) in its Q3 2022 investor letter:
"Iridium Communications Inc. (NASDAQ:IRDM) is capitalizing on the approximately $3 billion it invested over several years to build and launch its current satellite network. It is now entering what it has termed a “cap-ex holiday” that should result in high free-cash-flow conversion. The company spent approximately $400 million on capital expenditures annually only a few years ago, but we expect this spend to decline to approximately $40 million in the coming years. It is an indication that the company’s substantial lead should persist as the capital investment and timeline to launch competitive products is too great. We expect Iridium to capitalize on the growing need for its high-speed L-Band network over this time.
Shares of Iridium Communications Inc., a leading satellite-based mobile voice and data communications services vendor, rose on increased expectations for smartphone compatibility after it announced a related development agreement and other market participants announced similar capabilities. In addition, Iridium reported record quarterly results showing an acceleration of revenue growth with strong profitability. Lastly, growth initiatives continue to mature including Aireon, an award from the Space Development Agency, and increasing speeds for its Certus offering."
Iridium Communications Inc. (NASDAQ:IRDM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held Iridium Communications Inc. (NASDAQ:IRDM) at the end of the second quarter which was 26 in the previous quarter.
We discussed Iridium Communications Inc. (NASDAQ:IRDM) in another article and shared the list of space stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
