What Happened?
Shares of satellite communications provider Iridium fell 3.4% in the afternoon session after Cathie Wood's ARK Investment Management sold a significant stake in the company.
The firm's daily trading report showed that on the previous day, its ARKQ and ARKX exchange-traded funds (ETFs) sold 400,301 shares of Iridium, valued at approximately $18.2 million. This move was part of a broader divestment, as ARK offloaded shares in 20 companies totaling about $222.87 million.
The shares were trading at $47.56, down 4.7% from the previous close.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Iridium? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Iridium’s shares are extremely volatile and have had 30 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 7 days ago when the stock dropped 9.6% on the news that a stronger-than-expected May jobs report fueled concerns that the Federal Reserve will keep interest rates elevated.
The U.S. economy added 172,000 nonfarm payroll jobs in May, significantly surpassing economists' expectations of around 85,000, while the unemployment rate held steady at 4.3%. This robust labor market data eases concerns of an economic slowdown but diminishes the likelihood of near-term interest rate cuts by the Federal Reserve.
A prolonged high-interest-rate environment can create headwinds for growth-oriented sectors like technology, as it pressures stock valuations by making future earnings less valuable in the present. As a result, investors recalibrated their expectations for a 'higher-for-longer' rate scenario.
Iridium is up 168% since the beginning of the year, and at $47.56 per share, it is trading close to its 52-week high of $52.07 from June 2026. Investors who bought $1,000 worth of Iridium’s shares 5 years ago would now be looking at an investment worth $1,195.
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