Should I buy Iridium stock in 2025?

What is iridium?

What is the price of the Iridium stock?

The price of Iridium stock is rising this week. As of now, IRDM trades at $25.57, reflecting a 24-hour decrease of $0.11 (-0.43%) but a weekly gain of 1.03%.

The company’s current market capitalization stands at $2.78 billion, with an average daily volume of 1.37 million shares over the last three months.

For investors in South Africa, Iridium’s relatively low beta suggests moderate volatility compared to the broader market, highlighting a balanced risk profile.

Our complete analysis of the Iridium stock

We have conducted a rigorous review of Iridium Communications Inc.’s most recent financial disclosures and its stock performance over the last three years, leveraging a proprietary combination of financial indicators, technical signals, market data, and competitive analysis. Our holistic approach enables us to discern dynamic entry opportunities, especially within the fast-evolving satellite communications sector. So, why might Iridium once again become a highly strategic entry point into the global connectivity and “New Space” value chain in 2025?

Recent Performance and Market Context

Iridium (NASDAQ: IRDM) currently trades at $25.57 (as of 30 May 2025), with a modest +1.03% gain over the past week. Year-to-date, the stock has retreated 13.96%, while the 12-month movement reflects a decline of 15.11%. While this short-term underperformance contrasts with the broader tech indices—many of which have hit new record highs—it sets the stage for a potential reversal. The recent performance stems not from any fundamental shortfall, but rather from sector rotation and profit-taking after exceptional expansion in 2022–2023.

Several positive developments have emerged:

• Strong Q1 2025 earnings: Revenue grew 5.4% year-on-year, with EBITDA up 6%, and EPS ($0.27) notably beating consensus by 22.7%.
• High-profile investment: Cathie Wood’s ARK Invest added nearly $10 million in IRDM during April 2025, reflecting robust institutional confidence.
• Major new partnerships: Notably, the Syniverse agreement in late May unlocks satellite-powered direct-to-device connectivity, opening new commercial vectors as the global satellite IoT market accelerates.

The macro backdrop is especially favorable: Exploding demand for resilient, borderless connectivity fueled by defense, government, logistics, and IoT, alongside supportive regulatory and investment policies around “New Space” technologies, has set the stage for renewed interest in market leaders such as Iridium—an angle that should be especially relevant to South African readers seeking global satellite play exposure.

Technical Analysis

Despite short-term volatility, the technical landscape appears constructive for medium-term buyers:

• Relative Strength Index (RSI): 51.6 (neutral), which often signals an absence of overbought or oversold pressure, paving the way for a fresh trend.
• MACD: Slightly negative (0.13), indicating that momentum has stabilized and could turn with positive stock-specific catalysts.
• Moving averages: Both the 20-day ($25.61) and 50-day ($25.48) moving averages are at or above the current price, offering nascent buy signals. While the 100-day ($27.44) and 200-day ($28.03) remain above, the proximity to the lower end of the 52-week trading range ($19.91 – $35.85) implies limited downside, especially as price converges on a robust support at $25.07.
• Reversal signals: A “death cross” was observed on 17 April (MA50 below MA200), typically a lagging indicator and, in this context, may mark the late phase of the corrective cycle—a pattern frequently preceding bullish rebounds in structurally strong tech names.

Taken together, Iridium’s technical profile suggests a stabilization phase, offering a potential springboard for buyers who prefer entry points close to key supports and ahead of reacceleration.

Fundamental Analysis

Iridium’s unique market position is underpinned by consistent growth, strategic innovation, and, increasingly, by attractive valuation metrics:

• Top-line and operational growth: 2024 revenue reached $830.7 million (+5.1% YOY), while Q1 2025 continued the trend ($214.9M revenue, EBITDA +6%, net profit up to $30.4M).
• Analyst expectations: Consensus points to 13.5% EPS growth for full-year 2025.
• Valuation: The Price/Earnings ratio stands at 24.35—attractive given the company’s robust growth trajectory and its sector-leading, subscription-driven revenue mix. The stock trades at a consensus price target of $32.33, representing a potential upside of 26.4%.
• Dividend yield: Currently 2.19% ($0.56/share)—noteworthy in a technology context and supportive of total return, especially for institutional and income-focused mandates.
• Structural strengths:
• The only truly global satellite constellation, a barrier no emerging competitor has yet to replicate.
• Dominant position in mobile satellite communications, with over 100 partners and a powerful brand.
• Unmatched presence in defense, government, and high-growth enterprise IoT sectors.

Iridium’s fundamentals affirm it as a structurally advantaged business, with a compelling blend of growth, innovation, and income potential.

Volume and Liquidity

Trading volume is robust—averaging 1.37 million shares daily over the last three months—reflecting steady institutional engagement and efficient price discovery. The stock’s $2.78B market capitalization and free float provide adequate depth for both retail and professional market participants. Importantly, such liquidity underpins IRDM’s ability to absorb large trades without excessive slippage, allowing dynamic repricing when new catalysts emerge.

Catalysts and Positive Outlook

Looking ahead, several drivers could unlock significant upside for Iridium in the coming quarters:

• Expansion in satellite IoT: The imminent commercial launch of the Iridium Certus 9704 module positions the firm at the forefront of the satellite-powered IoT revolution, set to transform everything from energy to supply chains.
• Direct-to-device innovation: The Syniverse partnership enables seamless, global mobile connectivity without terrestrial infrastructure, addressing critical connectivity gaps in emerging and established markets alike.
• Defense and public sector growth: Heightened geostrategic risk further cements the importance of secure, resilient satellite communications—a core segment for Iridium, which continues to secure new contracts and expand its governmental clientele.
• ESG alignment: Iridium’s environmentally conscious approach—enabling disaster response (e.g., with World Central Kitchen), safer energy grid management (Heimdall Power), and efficient resource deployment—resonates increasingly with impact-oriented investors.
• Supportive regulatory/market context: The global regulatory climate is highly conducive to sovereign internet, resilient communication infrastructure, and next-generation IoT solutions, all areas where Iridium’s proprietary constellation delivers an unassailable moat.

The consensus analyst recommendation remains a clear “Buy,” with no less than three major firms covering the name and price targets ranging as high as $49.35, highlighting the embedded optionality.

Investment Strategies

Given Iridium’s technical and fundamental landscape, several investment strategies are relevant:

• Short-term: With the stock near a key technical support ($25.07) and stabilizing after sector-wide corrections, tactical entries ahead of anticipated newsflow (product launches, further government contracts) could capture powerful mean reversions.
• Medium-term: Investors can capitalize on upcoming catalysts—including Certus module commercialization and Syniverse partnership output—while maintaining exposure to compounding EPS growth (13.5% projected for 2025).
• Long-term: As a proven, cash-generative leader with dividend yield and exposure to high-growth “New Space” verticals, Iridium remains a premium vehicle for secular satellite communications, defense, and IoT themes.

Ideal portfolio positioning may be built incrementally near these cyclical lows, especially for those seeking to blend growth and stability with tangible event-driven upside.

Is it the Right Time to Buy Iridium?

Iridium presents a compelling mix of defensive and offensive qualities—stabilized price action, robust volume, sector leadership, and a suite of imminent bullish catalysts. The company’s track record of double-digit profit growth, dividend support, and strategic expansion in the satellite IoT ecosystem justify renewed investor interest—particularly as shares trade near long-term supports and at a substantial discount to consensus price targets. With the satellite connectivity market on the brink of transformative expansion, the stock seems poised to enter a new bullish phase.

For investors seeking resilient, high-upside exposure to global technology infrastructure, Iridium—backed by its differentiated assets, expanding addressable market, and consistent execution—appears exceedingly well positioned for a re-rating. In the current context, the stock may represent an excellent opportunity for those wishing to anchor their portfolios to tomorrow’s digital backbone.

Iridium’s dominant position and tangible near-term catalysts create a scenario brimming with opportunity, warranting the most vigilant consideration by growth-driven and risk-conscious investors alike.

How to buy Iridium stock in South Africa?

Buying Iridium stock online is simpler and safer than ever for South African investors, thanks to regulated brokers that offer secure platforms and ZAR funding. You have two main options: spot buying (cash purchase of actual Iridium shares) or trading Iridium CFDs (Contracts for Difference) which allow you to speculate on price movements with leverage. Both methods are accessible from South Africa and can be started entirely online. Below, we break down the characteristics and practical examples of each method—before choosing, we recommend reviewing our broker comparison further down this page.

Spot Buying

A cash purchase of Iridium stock means you’re buying real shares, which are then held in your brokerage account in your name. For South Africans, most local and international brokers allow you to invest in US-listed stocks like Iridium (IRDM), usually charging a fixed commission per trade. For example, a typical brokerage might charge around R100-R150 per order (roughly $5-$8, depending on exchange rates), plus a minimal local currency conversion fee.

Example

If the Iridium share price is $25.57 (approximately R470 at an exchange rate of R18.40/$), with a brokerage fee of about $5 (R92), you can invest $1,000 (R18,400) and buy about 39 shares (after fees).
✔️ Gain scenario:
If Iridium’s price rises by 10%, your position’s value grows to $1,100 (R20,240).
Result: That’s a gross gain of $100 (+10%) before currency considerations or any tax.

Trading via CFD

CFDs (Contracts for Difference) allow you to trade on Iridium’s share price without owning the underlying shares. This is a flexible, short-term instrument offered by many regulated brokers in South Africa. Instead of a flat commission, you pay a spread (the difference between buy and sell prices) and, if holding overnight, a small daily financing fee.

Example

You open a CFD position on Iridium stock with a $1,000 margin (R18,400), applying 5x leverage. Your market exposure is now $5,000.
✔️ Gain scenario:
If Iridium’s share price rises by 8%, your position increase is 8% × 5 = 40%.
Result: That’s a $400 profit on your $1,000 margin (excluding spreads and financing).

Final advice

Before buying Iridium shares, it’s essential to compare brokers for their fees, platform features, and ZAR support—each broker’s conditions can impact your net return. Ultimately, the best method depends on your risk tolerance, investment horizon, and personal objectives. To make an informed choice, be sure to consult our detailed broker comparison further down the page. Happy investing!

Our 7 tips for buying Iridium stock

The latest news about Iridium

Iridium stock advanced 1.03% over the past week, outperforming recent sector volatility. This resilient uptick comes amid ongoing global market instability and is especially noteworthy given Iridium’s focus on satellite connectivity—a sector relevant to South African enterprises reliant on resilient data links for mining, logistics, and rural communications. The positive weekly momentum also positions the stock favourably for local institutional investors, overcoming a previously underwhelming six-month trend.

Iridium announced a significant partnership with Syniverse on 29 May 2025 to expand direct-to-device satellite connectivity. This collaboration creates new avenues for mobile network operators to provide always-on global coverage using Iridium’s satellite architecture, a technology stack increasingly evaluated by South African telcos keen to overcome coverage gaps across the vast, less-networked parts of the country. Success here could support business continuity for local enterprises and government, while improving disaster recovery and rural inclusion.

The company’s Q1 2025 financial results showed revenue growth of 5.4% year on year and a 22.73% positive earnings surprise. This financial performance—outperforming analyst consensus—solidifies the company’s operating momentum as demand for satellite IoT and communications accelerates worldwide. For South African investors, these robust results enhance confidence in Iridium’s capacity to serve high-growth verticals locally, such as agritech, transport, and security, where remote, secure communication is crucial.

Recent innovations, notably the global launch of the Iridium Certus 9704 satellite IoT module, are expected to drive future growth. The Certus 9704, deployed in May 2025, delivers enhanced data throughput and lower-latency services, making it particularly attractive for South African asset tracking, energy, utility, and wildlife management sectors. Aligning with Africa’s rising IoT adoption, such technological leadership can help local system integrators and OEMs unlock new market opportunities and reinforce national digital transformation agendas.

Analyst consensus remains optimistic, with an average price target indicating a 26% upside and a clear “buy” recommendation. Investor sentiment has benefited from expanded institutional holdings—highlighted by the visible ARK Invest commitment in April 2025—while the stock’s defensive profile and 2.19% dividend yield offer further appeal for South African funds and wealth managers seeking diversification and exposure to hard-currency assets insulated from domestic economic fluctuations.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.