SpaceX (NASDAQ:SPCX) Shares Down 4.1% – Should You Sell?

SpaceX (NASDAQ:SPCX) dropped 4.1% during mid-day trading on Wednesday. The company traded as low as $147.89 and last traded at $148.36. 59,736,940 shares changed hands during mid-day trading, a decline of 43% from the average session volume of 105,076,125 shares. The stock had previously closed at $154.72.

Key Stories Impacting SpaceX

Here are the key news stories impacting SpaceX this week:

• Positive Sentiment: SpaceX completed a successful launch rehearsal after loading cryogenic fuel into Booster 21 and Ship 41. Flight 14 is targeting Starship’s first orbital mission, including multiple trips around Earth; a successful test could strengthen confidence in the company’s long-term reusable-rocket strategy. Starship rehearsal article
• Positive Sentiment: Mizuho analyst Brett Linzey said SpaceX could sustain premium computing prices through 2027 and expects significant upside over the next year. The outlook reflects growing investor interest in SpaceX’s Colossus 2 data center and AI ambitions. Mizuho SpaceX outlook
• Positive Sentiment: Google selected SpaceX’s Transporter-18 mission to launch the first Project Suncatcher satellite, which will test AI chips in orbit. The agreement highlights SpaceX’s role in emerging orbital-data-center and space-based AI applications. Google Suncatcher article
• Positive Sentiment: SpaceX is also preparing a Space Force launch from California, providing another reminder of its government and national-security demand base. Space Force launch article
• Neutral Sentiment: Elon Musk said SpaceX’s AI model could reach leading-model capabilities within months and that Colossus 2 could deploy more than 1.2 million Nvidia chips by year-end. The statements support the growth narrative but remain ambitious and dependent on power, cooling, networking and execution. Colossus 2 article
• Negative Sentiment: About 328 million previously restricted shares became eligible for trading, creating a major potential supply overhang. COO Gwynne Shotwell separately sold 342,170 shares worth approximately $52.5 million under a pre-arranged Rule 10b5-1 plan, adding to near-term selling concerns. Insider sale article
• Negative Sentiment: Investors remain cautious about SpaceX’s roughly $2 trillion valuation, ongoing losses and intensifying competition from Amazon and Blue Origin. Any Starship delay or disappointment in the AI expansion could pressure the stock.

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on the stock. Wall Street Zen raised shares of SpaceX from a “sell” rating to a “hold” rating in a research note on Saturday, August 8th. Piper Sandler lowered their target price on SpaceX from $156.00 to $140.00 and set a “neutral” rating on the stock in a research note on Wednesday, August 5th. Morgan Stanley reaffirmed an “overweight” rating and issued a $300.00 target price on shares of SpaceX in a research report on Wednesday, August 26th. Barclays raised SpaceX from an “underweight” rating to an “overweight” rating in a research note on Monday, June 22nd. Finally, Stifel Nicolaus assumed coverage on SpaceX in a research note on Tuesday, July 7th. They issued a “buy” rating and a $190.00 price target for the company. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating, eight have assigned a Hold rating and seven have given a Sell rating to the stock. Based on data from MarketBeat.com, SpaceX has an average rating of “Moderate Buy” and a consensus target price of $218.28.

SpaceX Stock Down 0.0%

The company has a quick ratio of 4.99, a current ratio of 5.12 and a debt-to-equity ratio of 0.29. The stock has a 50-day simple moving average of $135.91. The stock has a market capitalization of $1.94 trillion and a PE ratio of -1,644.83.

SpaceX (NASDAQ:SPCX) last announced its quarterly 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 for the quarter. The firm’s quarterly revenue was up 91.9% compared to the same quarter last year. Analysts predict that SpaceX will post -0.15 EPS for the current fiscal year.

Insider Activity at SpaceX

In other SpaceX news, COO Gwynne Shotwell sold 342,170 shares of the stock in a transaction 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 sale, the chief operating officer directly owned 2,472,035 shares in the company, valued at approximately $379,630,414.95. This trade represents a 12.16% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Hedge Funds Weigh In On SpaceX

Several hedge funds have recently made changes to their positions in the business. Syntax Research Inc. acquired a new position in shares of SpaceX during the 2nd quarter worth approximately $26,000. Atwood & Palmer Inc. acquired a new position in SpaceX during the second quarter worth $29,000. PayPay Securities Corp bought a new stake in SpaceX during the second quarter worth $30,000. Marquette Asset Management LLC acquired a new stake in SpaceX in the second quarter valued at $32,000. Finally, Community Bank N.A. bought a new position in shares of SpaceX in the 2nd quarter valued at about $38,000.

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, serving commercial, government and scientific customers.

SpaceX’s principal products include the Falcon 9 and Falcon Heavy rockets, which are used to launch satellites, spacecraft and other payloads into orbit. The company also develops the Dragon spacecraft, which supports cargo and crew missions to low Earth orbit, including missions for NASA and other customers.

Through its Starlink business, SpaceX operates a large constellation of low Earth orbit satellites that provides broadband internet service to customers in numerous countries and regions.