SpaceX (NASDAQ:SPCX) Stock Price Down 4.3% – Here’s Why

Shares of SpaceX (NASDAQ:SPCX) dropped 4.3% during trading on Wednesday. The company traded as low as $143.91 and last traded at $142.2060. Approximately 17,928,414 shares changed hands during trading, a decline of 82% from the average session volume of 102,385,805 shares. The stock had previously closed at $148.58.

Key SpaceX News

Here are the key news stories impacting SpaceX this week:

• Positive Sentiment: SpaceX reported third-quarter revenue of approximately $14.6 billion, up 161% year over year, and net income of $4.4 billion. Earnings per share of $0.35 substantially exceeded the $0.10 consensus estimate. Is SpaceX Stock a Buy Right Now?
• Positive Sentiment: Analyst support remains strong. Bernstein raised its price target to $268 from $248 and maintained an Outperform rating, while Bank of America added SpaceX to its list of top U.S. stock picks. Optimism centers on Starlink growth, AI infrastructure and potential future orbital data centers. SpaceX stock rises, why analysts see more upside for the stock
• Positive Sentiment: SpaceX has roughly six times Tesla’s cash and cash equivalents, providing financial flexibility as it expands its satellite, AI and communications businesses. SpaceX has 500% more cash than Tesla
• Neutral Sentiment: Speculation about a SpaceX-Tesla merger continues to support investor interest, but no transaction has been signed. Any deal could create strategic synergies while also raising concerns about dilution, pricing and whether SpaceX shareholders would effectively subsidize Tesla.
• Negative Sentiment: SpaceX’s valuation leaves little room for execution mistakes. Critics note that one strong quarter does not justify the company’s extremely high sales multiple, particularly while its AI division drives most of the growth and capital spending.
• Negative Sentiment: The company secured approximately $40 billion in financing for GPUs and data-center equipment. The funding accelerates AI expansion but increases leverage and exposes shareholders to customer-concentration, financing and demand risks. SpaceX locks in $40B GPU financing deal with Apollo
• Negative Sentiment: A six-week pause in Florida rocket launches and continuing legal and political challenges around SpaceX facilities add near-term operational uncertainty.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on the company. Erste Group Bank initiated coverage on SpaceX in a research note on Thursday, October 8th. They issued a “hold” rating for the company. Needham & Company LLC reissued a “buy” rating and issued a $250.00 price objective on shares of SpaceX in a research report on Wednesday, October 21st. Bank of America boosted their price objective on SpaceX from $235.00 to $275.00 and gave the company a “buy” rating in a research note on Thursday, October 22nd. Susquehanna boosted their price target on SpaceX from $173.00 to $176.00 and gave the company a “neutral” rating in a research note on Wednesday, October 21st. Finally, Weiss Ratings started coverage on SpaceX in a report on Tuesday, September 1st. They set a “sell (d)” rating on the stock. Four analysts have rated the stock with a Strong Buy rating, thirty have assigned a Buy rating, nine have assigned a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $244.97.

SpaceX Stock Performance

The stock has a market capitalization of $1.91 trillion and a PE ratio of 556.49. The company’s 50-day simple moving average is $149.43.

SpaceX (NASDAQ:SPCX) last announced its quarterly earnings results on Tuesday, October 20th. The company reported $0.35 earnings per share for the quarter, beating the consensus estimate of $0.10 by $0.25. The company had revenue of $14.57 billion for the quarter. During the same quarter in the previous year, the company posted ($0.36) EPS. The firm’s revenue for the quarter was up 161.4% on a year-over-year basis. On average, research analysts anticipate that SpaceX will post 0.13 EPS for the current year.

Insider Transactions at SpaceX

In related news, COO Gwynne Shotwell sold 342,170 shares of the firm’s stock in a transaction that occurred on Tuesday, September 22nd. The stock was sold at an average price of $153.57, for a total transaction of $52,547,046.90. Following the transaction, the chief operating officer directly owned 2,472,035 shares in the company, valued at $379,630,414.95. This trade represents a 12.16% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Investors Weigh In On SpaceX

Several institutional investors and hedge funds have recently bought and sold shares of SPCX. Viking Fund Management LLC purchased a new position in shares of SpaceX during the 3rd quarter worth $1,358,000. Diversify Advisory Services LLC raised its holdings in SpaceX by 34.0% in the 3rd quarter. Diversify Advisory Services LLC now owns 48,477 shares of the company’s stock valued at $7,205,000 after buying an additional 12,292 shares during the period. Wedbush Securities Inc. acquired a new position in SpaceX in the second quarter valued at about $5,094,000. Avior Wealth Management LLC purchased a new position in SpaceX during the third quarter worth about $2,934,000. Finally, Apella Capital LLC boosted its stake in SpaceX by 218.2% during the third quarter. Apella Capital LLC now owns 8,424 shares of the company’s stock worth $1,412,000 after buying an additional 5,777 shares during the period.

SpaceX Company Profile

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

SpaceX’s principal products and services include the Falcon 9 and Falcon Heavy rockets, the Dragon spacecraft and the Starlink satellite communications network. Falcon rockets are used to launch satellites, cargo and crew, while Dragon spacecraft support transportation to and from low Earth orbit.