Firefly Aerospace (NASDAQ:FLY) Shares Down 5.5% – Here’s Why

Firefly Aerospace, Inc. (NASDAQ:FLY)’s share price traded down 5.5% during trading on Tuesday . The stock traded as low as $28.28 and last traded at $28.7580. 1,188,243 shares were traded during trading, a decline of 66% from the average session volume of 3,451,064 shares. The stock had previously closed at $30.44.

Firefly Aerospace News Summary

Here are the key news stories impacting Firefly Aerospace this week:

• Positive Sentiment: Company announced an Alpha Block II configuration upgrade to improve reliability, producibility and launch operations; Flight 7 will test Block II subsystems in shadow mode and Flight 8 will carry the full Block II upgrade — a clear execution/technology catalyst if validation goes well. Read More.
• Positive Sentiment: Sector momentum: coverage notes space stocks have rallied into 2026 with Firefly among the leaders, supporting continuation of investor interest and liquidity into the name. Read More.
• Positive Sentiment: Analyst/market commentary: a recent Seeking Alpha piece frames FLY as a speculative “buy” focused on execution, which can attract retail and momentum buyers if the company delivers on Flight 7/8 milestones. Read More.
• Neutral Sentiment: Comparative research pieces contrasting Firefly with Voyager Technologies may influence relative valuation debate but are not standalone catalysts. Read More. Read More.
• Negative Sentiment: Rising short interest: as of Dec. 31 short interest rose to ~4.72M shares (≈36.4% increase from mid‑December), ~3% of shares sold short and a ~1.3 days‑to‑cover — higher shorting raises potential selling pressure and volatility. (Data reported Jan. 12)
• Negative Sentiment: Legal overhang: multiple law firms have filed or are soliciting lead plaintiffs in a securities‑class action tied to Firefly’s IPO and early disclosure period; several reminder filings / deadlines were publicized Jan. 11–12 — this creates litigation risk, potential costs, and near‑term selling by concerned holders. Read More. Read More.

Analysts Set New Price Targets

A number of research firms have issued reports on FLY. Deutsche Bank Aktiengesellschaft raised shares of Firefly Aerospace from a “hold” rating to a “buy” rating and reduced their target price for the company from $40.00 to $30.00 in a research note on Thursday, November 13th. KeyCorp assumed coverage on Firefly Aerospace in a report on Thursday, December 18th. They issued a “sector weight” rating for the company. Roth Capital reaffirmed a “buy” rating on shares of Firefly Aerospace in a research note on Monday, November 24th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Firefly Aerospace in a research report on Monday, December 29th. Finally, JPMorgan Chase & Co. lowered their price target on Firefly Aerospace from $55.00 to $28.00 and set an “overweight” rating on the stock in a report on Tuesday, November 25th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $38.43.

Firefly Aerospace Stock Performance

The stock has a market capitalization of $4.44 billion and a PE ratio of -3.83. The business’s 50 day simple moving average is $21.65. The company has a quick ratio of 6.20, a current ratio of 6.20 and a debt-to-equity ratio of 0.03.

Firefly Aerospace (NASDAQ:FLY) last announced its earnings results on Wednesday, November 12th. The company reported ($0.33) earnings per share for the quarter, beating the consensus estimate of ($0.42) by $0.09. The firm had revenue of $30.78 million for the quarter, compared to the consensus estimate of $28.93 million. The firm’s quarterly revenue was up 37.5% compared to the same quarter last year.

Hedge Funds Weigh In On Firefly Aerospace

Institutional investors have recently bought and sold shares of the stock. BNP Paribas Financial Markets purchased a new position in shares of Firefly Aerospace in the third quarter worth approximately $26,000. CIBC Private Wealth Group LLC purchased a new stake in shares of Firefly Aerospace in the third quarter worth approximately $26,000. Zurcher Kantonalbank Zurich Cantonalbank acquired a new stake in shares of Firefly Aerospace during the third quarter worth approximately $55,000. SBI Securities Co. Ltd. purchased a new position in Firefly Aerospace during the third quarter valued at approximately $74,000. Finally, Sandia Investment Management LP purchased a new position in shares of Firefly Aerospace during the 3rd quarter valued at $147,000.

About Firefly Aerospace

Firefly Aerospace (NASDAQ:FLY) is a U.S.-based aerospace company that designs, manufactures and operates launch vehicles and in-space systems for commercial, civil and national security customers. The company focuses on providing end-to-end small- and medium-lift launch services, mission integration and spacecraft hardware to support satellite deployment and on-orbit operations.

Firefly’s product portfolio includes the Alpha small launch vehicle, developed to carry small satellites to low Earth orbit, and plans for larger vehicles and in-space capabilities to address a range of payload sizes and mission profiles.