Iridium Insider Stock Sales
Iridium Executives Sell Over 150,000 Shares Following Mixed Quarterly Earnings Report
Key Points
Timothy James Last's post-trade stake: after selling 19,521 Iridium shares at an average price of 50.34, Last directly owned 93,413 shares, valued at approximately $4,702,410.42.
Kathleen Morgan's post-trade stake: after selling 33,192 Iridium shares at an average price of 50.35, Morgan owned 124,871 shares valued at about $6,287,254.85.
Timothy Kapalka's post-trade stake: after selling 13,473 Iridium shares at about 50.51, Kapalka owned 35,731 shares valued at roughly $1,804,772.81.
Suzanne McBride's post-trade stake: after selling 85,454 Iridium shares at about 50.28, McBride owned 282,017 shares valued at around $14,179,814.76.
Iridium reported a mixed quarter: EPS of $0.09 versus $0.28 expected; revenue of $225.24 million, up 3.8% year over year; return on equity 22.57%; net margin 10.55%.
Four top executives at Iridium Communications sold about 150,000 shares on August 17, reducing their stakes by 17% to 27% each Kalkinemedia. The sales totaled roughly $7.66 million as the stock traded around $50 per share. The coordinated selling came as the company reported mixed quarterly results — earnings of $0.09 per share fell far short of the $0.28 expected Watchlistnews.
Four Executives Unload Massive Share Blocks
EVP Timothy James Last sold 19,521 shares for $982,687, cutting his stake by 17.29% Kalkinemedia. CAO Timothy Kapalka dumped 13,473 shares for roughly $680,521, reducing his holdings by 27.38%. Director Kathleen Morgan disposed of 33,192 shares for about $1.67 million — a 21% drop. Most notably, Suzanne McBride sold 85,454 shares for approximately $4.30 million, the largest single transaction Watchlistnews.
Despite selling, all four insiders retain substantial holdings. Last still owns 93,413 shares worth about $4.7 million. McBride holds the most at 282,017 shares valued around $14.2 million Kalkinemedia. Kapalka retains 35,731 shares worth roughly $1.8 million. Morgan kept 124,871 shares valued at approximately $6.3 million.
Earnings Miss and Revenue Growth Create Mixed Outlook
Iridium reported weak earnings in the same quarter as these sales. The company posted earnings per share of just $0.09, missing analyst expectations of $0.28 by 68%. Revenue did show strength, rising 3.8% year over year to $225.24 million Watchlistnews. The company maintained a healthy 22.57% return on equity with a 10.55% net margin.
The earnings miss may explain the insider selling. When executives sell significant blocks, it often signals concern about near-term stock momentum. The sales occurred at prices around $50, which the market held steady at $48.71 after a $0.32 dip on the trading day Kalkinemedia.
Director Fitzpatrick's Even Larger August Selloff
Insider sales at Iridium extended beyond the four executives. Director Thomas Fitzpatrick sold an even bigger block — 224,279 shares on August 18 at $50.15 per share GuruFocus. This transaction cut his direct holdings by 84%, a much steeper reduction than the other executives. Fitzpatrick's massive dump suggests top leadership lost confidence in the near-term stock price.
The Fitzpatrick sale represents a significant turn from insider buying patterns earlier in the year. When executives and directors sell this much stock this quickly, institutional investors often take notice and adjust positions GuruFocus. The combination of weak earnings, solid revenue growth, and heavy insider selling creates an unusual and potentially telling picture.
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