Iridium Communications Inc. (NASDAQ: IRDM) has announced the approval of an additional $500 million share repurchase program by its board of directors, bringing the total value of the program to $1.5 billion. This marks the fourth stock repurchase authorization from the board of directors in the past four years, reflecting a consistent commitment to returning value to shareholders. The company began its share repurchase program with an authorization of $300 million in February 2021, followed by a second $300 million authorization in March 2022, and a third authorization of $400 million in July 2023.
The latest $500 million authorization is the largest ever approved by the board of directors, underscoring the strength of Iridium's business. The company aims to maximize return on investment for investors through the execution of share repurchases, as highlighted in its second quarter 2024 earnings release. Iridium continues to target net leverage below 4.0 times through 2026 and falling below 2.0 times operational EBITDA by the end of the decade, including the ongoing effects of this repurchase program.
Matt Desch, CEO of Iridium, emphasized the company's commitment to shareholder-friendly activities, noting that Iridium has already returned over a billion dollars through share repurchases and dividends in the last few years.
The company's share repurchase timeframe can be extended or shortened by the board of directors, with potential transactions being made on the open market at prevailing prices or in negotiated transactions off the market.
As of the latest announcement, Iridium is positioned as one of the most shareholder-friendly companies in the tech and telecom industries, demonstrating its dedication to creating value for its investors.
Iridium Communications Inc. operates as the only mobile voice and data satellite communications network that spans the entire globe, enabling real-time connections between people, organizations, and assets worldwide. The company's common stock trades on the NASDAQ Global Select Market under the ticker symbol IRDM. The market has reacted to these announcements by moving the company's shares 1.6% to a price of $27.88. For more information, read the company's full 8-K submission here.
