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

SpaceX (NASDAQ:SPCX)’s stock price fell 4.2% during trading on Tuesday. The stock traded as low as $156.05 and last traded at $156.54. 68,165,867 shares changed 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.

Key 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

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on SPCX shares. Wolfe Research reiterated an “outperform” rating and set a $175.00 price target on shares of SpaceX in a report on Wednesday, August 26th. Mizuho initiated coverage on SpaceX in a report on Tuesday, July 7th. They issued an “outperform” rating and a $200.00 price objective for the company. Barclays initiated coverage on SpaceX in a research report on Friday. They set an “overweight” rating and a $254.00 target price for the company. Guggenheim assumed coverage on SpaceX in a report on Friday, August 7th. They set a “buy” rating on the stock. Finally, UBS Group reiterated a “buy” rating on shares of SpaceX in a research report on Tuesday, September 29th. Two analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, nine have assigned a Hold rating and six have assigned a Sell rating to the company. According to MarketBeat.com, SpaceX currently has a consensus rating of “Moderate Buy” and a consensus price target of $220.06.

SpaceX Price Performance

The firm has a 50-day simple moving average of $146.01. The stock has a market cap of $2.06 trillion and a P/E ratio of -1,739.33. The company has a debt-to-equity ratio of 0.29, a current ratio of 5.12 and a quick ratio of 4.99.

SpaceX (NASDAQ:SPCX) last released its earnings results on Tuesday, August 4th. The company reported ($0.09) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.26) by $0.17. The firm had revenue of $7.81 billion during the quarter. The company’s revenue for the quarter was up 91.9% on a year-over-year basis. On average, equities research analysts expect that SpaceX will post 0.09 EPS for the current fiscal year.

Insider Activity at SpaceX

In other news, COO Gwynne Shotwell sold 342,170 shares of the firm’s stock in a transaction that occurred on 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 completion of the sale, the chief operating officer owned 2,472,035 shares of the company’s stock, valued at $379,630,414.95. This trade represents a 12.16% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Investors Weigh In On SpaceX

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