Is it a Smart Move to Acquire Iridium Communications (IRDM) Shares?
Baron Funds, an investment management firm, released its “Baron Focused Growth Fund” first quarter 2023 investor letter, a copy of which can be downloaded here. During the quarter ending on March 31, 2023, the Fund's Institutional Shares exhibited a notable increase of 14.49%. This remarkable performance can be attributed to the resilience and robust demand witnessed by companies held within the Fund's portfolio. Spare some time to check the fund’s top 5 holdings to know more about their top bets for 2023.
In its Q1 2023 investor letter, Baron Focused Growth Fund mentioned Iridium Communications Inc. (NASDAQ:IRDM) and explained its insights for the company. Founded in 2001, Iridium Communications Inc. (NASDAQ:IRDM) is a McLean, Virginia-based satellite communications company with a $7.5 billion market capitalization. Iridium Communications Inc. (NASDAQ:IRDM) delivered a 16.87% return since the beginning of the year, while its 12-month returns are up by 65.48%. The stock closed at $60.80 per share on June 13, 2023.
Here is what Baron Focused Growth Fund has to say about Iridium Communications Inc. (NASDAQ:IRDM) in its Q1 2023 investor letter:
"Iridium, a leading mobile voice and data communications services vendor offering global coverage via satellite, increased 20.8% and added 99 bps to performance in the quarter. The stock outperformed as the company’s revenue growth accelerated, leading to strong profitability and cash flow, which the company used to buy back its stock. The company continues to benefit from its $3 billion investment in its satellite constellation, which is a technologically and capital-intensive effort and a strong barrier to entry. Iridium continues to generate consistent and growing revenue and cash flow, which should lead to a return of capital to shareholders for at least the next 10 years. That is since its satellites last longer than its competitors’ satellites, and they offer stronger broadband given their low-Earth orbit positioning."
Photo by Mika Baumeister on Unsplash
Our calculations show that Iridium Communications Inc. (NASDAQ:IRDM) was not able to secure a spot on our list of the 30 Most Popular Stocks Among Hedge Funds. Iridium Communications Inc. (NASDAQ:IRDM) was in 25 hedge fund portfolios at the end of the first quarter of 2023, compared to 30 funds in the previous quarter. Iridium Communications Inc. (NASDAQ:IRDM) delivered a -0.87% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q1 2023 page.
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Disclosure: None. This article is originally published at Insider Monkey.
