IRDM Stock Down 22%, Is It Time To Buy The Dip?
Iridium Communications stock has fallen by 22.1% in less than a month, from levels of $32.43 on 7/23/2025 to $25.27 now. Should you buy this dip? Dip buying is a viable strategy for quality stocks that have a history of recovering from dips.
As it turns out, Iridium Communications passes basic quality checks and has returned (median) 61% in one year, and 118% as peak return following sharp dips (>30% in 30 days) historically.
That said, if you seek upside with lower volatility than individual stocks, the Trefis High Quality portfolio presents an alternative – having outperformed the S&P 500 and generated returns exceeding 91% since its inception.
Historical Median Returns Post Dips
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| Period | Past Median Return |
|---|---|
| 1M | 16.6% |
| 3M | 25.3% |
| 6M | 38.0% |
| 12M | 61.2% |
Historical Dip-Wise Details
IRDM had 2 events since 1/1/2020 where the dip threshold of -30% within 30 days was triggered
- 118% median peak return within 1 year of dip event
- 248 days is the median time to peak return after a dip event
- -7.6% median max drawdown within 1 year of dip event
| 30 Day Dip | IRDM Subsequent Performance | |||||||
|---|---|---|---|---|---|---|---|---|
| Date | IRDM | SPY | 1Y | Peak Return |
Max Drop |
# Days to Peak |
||
| Median | 61% | 118% | -8% | 248 | ||||
| 3232021 | -30% | 0% | 7% | 30% | -15% | 168 | ||
| 3182020 | -36% | -27% | 115% | 207% | 0% | 327 | ||
Iridium Communications Passes Basic Financial Quality Checks
Revenue growth, profitability, cash flow, and balance sheet strength need to be evaluated to reduce the risk of a dip being the sign of a deteriorating business situation.
| Quality Metrics | Value | Quality Check |
|---|---|---|
| Revenue Growth (LTM) | 6.6% | Pass |
| Revenue Growth (3-Yr Avg) | 10.0% | Pass |
| Operating Cash Flow Margin (LTM) | 43.4% | Pass |
| Leverage (see below) | – | Pass |
| => Interest Coverage Ratio | 2.3 | |
| => Cash To Interest Expense Ratio | 0.6 |
Dip buying, while attractive, needs to be evaluated carefully from multiple angles. Such multi-factor analysis is exactly how we construct Trefis portfolio strategies. If you want upside with a smoother ride than an individual stock, consider the High Quality portfolio, which has outperformed the S&P, and clocked >91% returns since inception.