SpaceX (NASDAQ:SPCX) Stock Price Down 6.4% – Time to Sell?

SpaceX (NASDAQ:SPCX) dropped 6.4% during mid-day trading on Friday. The company traded as low as $134.50 and last traded at $134.72. Approximately 120,939,937 shares traded hands during trading, an increase of 17% from the average session volume of 103,113,711 shares. The stock had previously closed at $143.89.

SpaceX News Roundup

Here are the key news stories impacting SpaceX this week:

• Positive Sentiment: SpaceX’s AI business remains the main bullish catalyst. Reports say Anthropic accounted for more than one-third of third-quarter revenue, while analysts highlighted accelerating AI revenue, Nvidia demand and the potential for substantial long-term data-center growth. However, the customer’s contract can reportedly be canceled with 90 days’ notice after early 2027. Anthropic reportedly becomes SpaceX’s top customer
• Positive Sentiment: Starlink continues to expand, adding 1.6 million customers in the third quarter, with average revenue per user also increasing. SpaceX also launched Ukraine’s first OBRIA test satellite, reinforcing Falcon 9’s commercial and government demand. Starlink added customers
• Neutral Sentiment: Elon Musk’s comments about a possible Tesla-SpaceX combination generated investor interest, but the idea remains speculative and would face difficult shareholder, regulatory and governance hurdles. Questions about a possible Tesla-SpaceX merger
• Negative Sentiment: A broader technology selloff was intensified by weak forward guidance from Intel and renewed concerns that AI infrastructure spending may outpace sustainable demand. SpaceX is spending heavily to build computing capacity, increasing execution and return-on-capital risks. Tech earnings pressure SpaceX shares
• Negative Sentiment: Investors are increasingly focused on the estimated $130 billion that SpaceX might need to build a nationwide wireless network, despite nearly $28 billion in spectrum-related deals. T-Mobile is opposing proposed spectrum-rule changes, adding competitive and regulatory uncertainty. Estimated cost of SpaceX wireless expansion
• Negative Sentiment: SpaceX’s valuation remains demanding, while potential insider share unlocks could increase supply. The company also faces reputational and customer-mix concerns after a Ukrainian defense contractor said it can complete missions without SpaceX satellite services. Ukrainian arms maker reduces reliance on SpaceX

Wall Street Analyst Weigh In

Several analysts have issued reports on SPCX shares. Needham & Company LLC reaffirmed a “buy” rating and set a $250.00 price target on shares of SpaceX in a research report on Wednesday, October 21st. Argus raised SpaceX from a “hold” rating to a “buy” rating and set a $160.00 target price on the stock in a report on Friday, August 7th. JPMorgan Chase & Co. raised their target price on shares of SpaceX from $240.00 to $500.00 and gave the company an “overweight” rating in a report on Wednesday, October 21st. HSBC reaffirmed a “hold” rating on shares of SpaceX in a report on Wednesday, October 21st. Finally, Barclays increased their target price on shares of SpaceX from $254.00 to $300.00 and gave the stock an “overweight” rating in a report on Wednesday, October 21st. Four analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating, nine have assigned a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $244.97.

SpaceX Stock Performance

The firm has a market cap of $1.78 trillion and a PE ratio of 518.15. The company has a debt-to-equity ratio of 0.20, a quick ratio of 3.00 and a current ratio of 3.08. The firm has a 50 day moving average of $149.55.

SpaceX (NASDAQ:SPCX) last posted its quarterly earnings data on Tuesday, October 20th. The company reported $0.35 earnings per share for the quarter, topping the consensus estimate of $0.10 by $0.25. SpaceX had a negative net margin of 8.61% and a negative return on equity of 3.24%. The company had revenue of $14.57 billion for the quarter. During the same quarter last year, the company posted ($0.36) earnings per share. The firm’s revenue for the quarter was up 161.4% on a year-over-year basis. As a group, research analysts anticipate that SpaceX will post 0.13 earnings per share for the current year.

Insider Buying and Selling at SpaceX

In related news, COO Gwynne Shotwell sold 342,170 shares of the business’s stock in a transaction dated Tuesday, September 22nd. The shares were sold at an average price of $153.57, for a total transaction of $52,547,046.90. Following the sale, the chief operating officer owned 2,472,035 shares of the company’s stock, valued at $379,630,414.95. The trade was a 12.16% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Trading of SpaceX

A number of hedge funds have recently bought and sold shares of the company. James T. Borello RIA grew its holdings in shares of SpaceX by 41.4% in the 3rd quarter. James T. Borello RIA now owns 246 shares of the company’s stock worth $37,000 after acquiring an additional 72 shares during the period. Oakworth Capital Inc. lifted its holdings in SpaceX by 17.8% during the 3rd quarter. Oakworth Capital Inc. now owns 483 shares of the company’s stock worth $73,000 after buying an additional 73 shares during the last quarter. Fonville Wealth Management LLC boosted its position in SpaceX by 3.8% during the 3rd quarter. Fonville Wealth Management LLC now owns 2,719 shares of the company’s stock valued at $410,000 after purchasing an additional 99 shares during the period. Downshift Financial LLC raised its position in shares of SpaceX by 25.7% during the 3rd quarter. Downshift Financial LLC now owns 553 shares of the company’s stock worth $83,000 after buying an additional 113 shares in the last quarter. Finally, Balance Wealth Partners LLC increased its holdings in shares of SpaceX by 5.7% in the third quarter. Balance Wealth Partners LLC now owns 2,261 shares of the company’s stock valued at $341,000 after buying an additional 121 shares in the last quarter.

About SpaceX

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.