SpaceX (NASDAQ:SPCX) Stock Falls 2.8% – Should You Sell?

SpaceX (NASDAQ:SPCX) was down 2.8% on Wednesday. The stock traded as low as $151.10 and last traded at $152.16. 65,960,463 shares changed hands during trading, a decline of 35% from the average daily volume of 101,209,547 shares. The stock had previously closed at $156.54.

SpaceX News Roundup

Here are the key news stories impacting SpaceX this week:

• Positive Sentiment: Starlink reportedly added approximately 570,000 subscribers per month in the second quarter, reinforcing its role as SpaceX’s primary profitable growth business. Starlink subscriber growth
• Positive Sentiment: SpaceX successfully delivered about 6,300 pounds of cargo to the International Space Station, demonstrating continued Falcon 9 execution and supporting the company’s launch business. NASA resupply mission
• Positive Sentiment: Several analysts remained bullish: Morgan Stanley reiterated an Overweight rating with a $300 target, while Raymond James maintained a Strong Buy and an $800 target, providing support for the long-term investment case. Morgan Stanley price target
• Positive Sentiment: The company’s acquisition of low-band wireless spectrum could enable broader Starlink Mobile coverage and expand SpaceX into telecommunications, although the opportunity requires substantial investment. SpaceX spectrum deal
• Neutral Sentiment: SpaceX is seeking approval to conduct as many as 456 Starship launches and landings annually. The proposal could materially expand capacity, but it remains subject to a federal environmental review and is far above the company’s current flight cadence. Starship expansion proposal
• Neutral Sentiment: An October 24 share unlock could increase the tradable supply of SpaceX stock, though previous unlocks have not consistently produced significant selling pressure. SpaceX share unlocks
• Negative Sentiment: Ukraine reported that new Starlink restrictions, including slower service and a reported speed limit for military terminals, disrupted drone and other frontline operations. The allegations raise reputational, political and potential government-contract risks for SpaceX. Ukraine Starlink restrictions
• Negative Sentiment: Investors remain concerned that SpaceX’s wireless and AI ambitions will require billions of dollars in additional capital, including a proposed $40 billion debt raise. Analysts also question whether Starlink Mobile can compete with terrestrial networks. SpaceX financing needs
• Negative Sentiment: A broader U.S. equity sell-off overshadowed the successful NASA launch, while the company’s ambitious expansion plans intensified concerns about valuation, execution risk and future cash burn. Why SpaceX shares declined

Analyst Upgrades and Downgrades

Several research firms have recently issued reports on SPCX. Weiss Ratings initiated coverage on shares of SpaceX in a report on Tuesday, September 1st. They issued a “sell (d)” rating for the company. Roth Capital upgraded SpaceX to a “buy” rating in a report on Monday, June 22nd. HSBC initiated coverage on shares of SpaceX in a research note on Thursday, July 23rd. They issued a “hold” rating and a $115.00 price target on the stock. Wolfe Research reaffirmed an “outperform” rating and set a $175.00 target price on shares of SpaceX in a research report on Wednesday, August 26th. Finally, Oppenheimer lifted their price target on shares of SpaceX from $250.00 to $280.00 and gave the company an “outperform” rating in a research note on Wednesday, September 2nd. Three investment analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, nine have issued a Hold rating and five have issued a Sell rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $220.06.

SpaceX Trading Down 2.8%

The company has a debt-to-equity ratio of 0.29, a current ratio of 5.12 and a quick ratio of 4.99. The company has a market capitalization of $2.01 trillion and a PE ratio of -1,690.67. The company has a 50-day simple moving average of $146.63.

SpaceX (NASDAQ:SPCX) last issued its quarterly earnings data on Tuesday, August 4th. The company reported ($0.09) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.26) by $0.17. The company had revenue of $7.81 billion for the quarter. The business’s quarterly revenue was up 91.9% on a year-over-year basis. As a group, research analysts expect that SpaceX will post 0.07 earnings per share for the current year.

Insider Activity

In other news, COO Gwynne Shotwell sold 342,170 shares of SpaceX stock in a transaction that occurred on 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 transaction, 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 position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Investors Weigh In On SpaceX

Several institutional investors have recently bought and sold shares of SPCX. Wedbush Securities Inc. acquired a new stake in shares of SpaceX in the 2nd quarter worth $5,094,000. Apella Capital LLC boosted its holdings in SpaceX by 218.2% in the third quarter. Apella Capital LLC now owns 8,424 shares of the company’s stock worth $1,412,000 after acquiring an additional 5,777 shares in the last quarter. Hyperion Asset Management Ltd acquired a new position in shares of SpaceX during the second quarter valued at about $201,137,000. K5 Global Advisor LLC purchased a new position in shares of SpaceX in the 2nd quarter valued at approximately $6,587,531,000. Finally, Turner Financial Group Inc. acquired a new stake in SpaceX in the 2nd quarter worth approximately $1,228,000.

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.