SpaceX (NASDAQ:SPCX) Shares Down 4.2% – Time to Sell?

SpaceX (NASDAQ:SPCX)’s stock price fell 4.2% during mid-day trading on Tuesday. The stock traded as low as $156.05 and last traded at $156.54. Approximately 68,165,867 shares traded hands during trading, a decline of 33% from the average session volume of 101,614,898 shares. The stock had previously closed at $163.42.

More SpaceX News

Here are the key news stories impacting SpaceX this week:

• Positive Sentiment: SpaceX successfully launched a Falcon 9 mission carrying roughly 6,300 pounds of supplies and equipment to the International Space Station, reinforcing the reliability of its core launch business. SpaceX successfully launches cargo to the International Space Station
• Positive Sentiment: The company is seeking approval to conduct as many as 456 Starship launches annually, a move that could materially expand capacity if reusable-rocket technology develops as planned. SpaceX seeks approval for 456 yearly Starship launches
• Positive Sentiment: Analysts remain constructive on long-term growth. Morgan Stanley maintained a $300 price target, while Jefferies sees Starlink potentially reaching 23% of aircraft by 2028. Morgan Stanley reiterates Buy rating
• Neutral Sentiment: SpaceX agreed to testify before the New York City Council regarding an AI-safety investigation after receiving a subpoena. The hearing creates headline and reputational risk, although no financial penalty was announced. SpaceX agrees to testify to NYC Council about AI safety
• Negative Sentiment: Investors are increasingly concerned about SpaceX’s capital requirements. Reports indicate the company may pursue as much as $40 billion in new debt to fund Nvidia chip purchases and its AI expansion, while credit-protection costs have risen. Bond investors are wary of SpaceX borrowing
• Negative Sentiment: Wall Street is questioning whether SpaceX’s roughly $8 billion spectrum acquisition and planned wireless service can generate adequate returns, particularly against established carriers. The strategy also threatens launch access and pricing for satellite competitors such as AST SpaceMobile. SpaceX wireless push sparks Wall Street skepticism

Analyst Ratings Changes

SPCX has been the topic of a number of research analyst reports. KGI Securities lowered SpaceX from an “outperform” rating to a “hold” rating in a research note on Monday, June 22nd. Arete Research set a $450.00 price objective on SpaceX in a research note on Tuesday, August 11th. CLSA initiated coverage on shares of SpaceX in a report on Monday, September 28th. They set an “outperform” rating and a $250.00 price target for the company. Pivotal Research reaffirmed a “buy” rating and issued a $230.00 price target on shares of SpaceX in a research note on Monday. Finally, Bank of America assumed coverage on shares of SpaceX in a research report on Tuesday, July 7th. They issued a “buy” rating and a $235.00 target price for the company. Two research analysts have rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating, nine have assigned a Hold rating and six have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, SpaceX presently has an average rating of “Moderate Buy” and a consensus price target of $220.06.

SpaceX Stock Performance

The stock has a market capitalization of $2.06 trillion and a PE ratio of -1,739.33. The company has a 50-day moving average of $146.01. The company has a current ratio of 5.12, a quick ratio of 4.99 and a debt-to-equity ratio of 0.29.

SpaceX (NASDAQ:SPCX) last released its quarterly earnings results on Tuesday, August 4th. The company reported ($0.09) earnings per share for the quarter, beating the consensus estimate of ($0.26) by $0.17. The firm had revenue of $7.81 billion for the quarter. The business’s revenue for the quarter was up 91.9% compared to the same quarter last year. On average, research analysts predict that SpaceX will post 0.09 earnings per share for the current year.

Insider Buying and Selling

In other SpaceX news, COO Gwynne Shotwell sold 342,170 shares of the company’s stock in a transaction dated Tuesday, September 22nd. The shares were sold at an average price of $153.57, for a total value of $52,547,046.90. Following the sale, the chief operating officer owned 2,472,035 shares in the company, valued at approximately $379,630,414.95. This represents a 12.16% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Investors Weigh In On SpaceX

Hedge funds have recently added to or reduced their stakes in the stock. SC US Ttgp LTD. bought a new position in shares of SpaceX during the second quarter valued at $20,933,621,000. Darsana Capital Partners LP bought a new position in SpaceX in the 2nd quarter worth about $17,335,783,000. K5 Global Advisor LLC bought a new position in SpaceX in the 2nd quarter worth about $6,587,531,000. State Street Corp purchased a new stake in SpaceX during the 2nd quarter valued at about $1,858,329,000. Finally, Dragoneer Investment Group LLC purchased a new stake in SpaceX during the 2nd quarter valued at about $1,366,880,000.

About SpaceX

Space Exploration Technologies Corp. (SpaceX) is a privately held aerospace company founded in 2002 by Elon Musk. The company develops and operates launch vehicles, spacecraft and satellite systems designed to reduce the cost of access to space and support commercial, government and scientific missions.

SpaceX’s primary products and services include the Falcon 9 and Falcon Heavy launch vehicles, the Dragon spacecraft and the Starlink satellite internet network. The company also is developing Starship, a fully reusable launch and spacecraft system intended for missions to Earth orbit, the Moon and Mars.