Iridium Communications (IRDM) Shares Outperformed as Expectations for Mobile Compatibility Increased

Baron Funds, an investment management company, released the “Baron Partners Fund” in the third quarter of 2022 investor letter. A copy of it can be downloaded here. The third quarter witnessed extreme volatility in the financial market. However, the fund outperformed the benchmark indices and rose 10.00% (Institutional Shares) during the quarter. In addition, please review the fund’s top five holdings to find out its best picks in 2022.

Baron Funds discussed stocks like Iridium Communications Inc. (NASDAQ:IRDM) in its Q3 2022 investor letter. Headquartered in McLean, Virginia, Iridium Communications Inc. (NASDAQ:IRDM) is a satellite communications company. On November 1, 2022, the stock of Iridium Communications Inc. closed. (NASDAQ:IRDM) at $51.32 per share. The one month return of Iridium Communications Inc. (NASDAQ:IRDM) is 7.54% and its shares have gained 22.39% of their value over the past 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 shining on the roughly $3 billion it has invested over several years to build and launch its current satellite network. It is now entering what it calls a “cap-ex holiday” that should result in high free cash-flow conversion. The company spent about $400 million in capital expenditures annually just a few years ago, but we expect this cost to decrease to about $40 million in the coming years. This is an indication that the company’s huge lead must continue because the capital investment and timeline to launch competitive products is too great. We expect Iridium to capitalize on the growing demand for its high-speed L-Band network during this period.

Shares of Iridium Communications Inc., a leading satellite-based mobile voice and data communications services vendor, rose on higher expectations for smartphone compatibility after it announced a related development agreement and other market participants have announced similar capabilities. In addition, Iridium reported record quarterly results showing an acceleration of revenue growth with strong profitability. Finally, growth initiatives continue to mature including Aireon, an award from the Space Development Agency, and accelerating its Certus offering.”

Iridium Communications Inc. (NASDAQ:IRDM) was not on our list of the 30 Most Popular Stocks in Hedge Funds. According to our database, 20 hedge fund portfolios hold Iridium Communications Inc. (NASDAQ:IRDM) at the end of the second quarter which was 26 last quarter.

We discussed Iridium Communications Inc. (NASDAQ:IRDM) in another article and we shared the list of stocks in the space to buy by hedge funds. In addition, please see 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 was originally published on Insider Monkey.

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