SpaceX (NASDAQ:SPCX) Stock Falls 4.2% – Time to Sell?

SpaceX (NASDAQ:SPCX) shares were down 4.2% during mid-day trading on Thursday. The company traded as low as $160.00 and last traded at $160.57. Approximately 66,467,240 shares changed hands during trading, a decline of 35% from the average daily volume of 102,493,047 shares. The stock had previously closed at $167.60.

Key Stories Impacting SpaceX

Here are the key news stories impacting SpaceX this week:

• Positive Sentiment: The spectrum purchase—reported at roughly $8 billion by some outlets, although the exact price was not disclosed—could give Starlink Mobile stronger coverage indoors and in dense urban areas where satellites are less effective. The deal also positions SpaceX to compete more directly with AT&T, Verizon and T-Mobile. SpaceX’s low-band spectrum deal gives Starlink Mobile a terrestrial foothold
• Positive Sentiment: Analyst support added to the bullish reaction. Barclays initiated coverage with a Buy rating and a $254 target, while TD Cowen reaffirmed Buy with a $200 target; other analysts highlighted the hybrid satellite-and-terrestrial network strategy. Two Reasons SpaceX Stock Is Jumping Higher Today
• Positive Sentiment: The FCC’s approval of up to 15,000 next-generation Starlink satellites strengthens the company’s long-term direct-to-device opportunity. Investors are also valuing SpaceX’s reported AI-computing demand and potential Nvidia chip purchases as additional growth engines. SpaceX Gets Green Light for 15,000 Starlink Satellites
• Neutral Sentiment: The spectrum transaction remains subject to final FCC approval, and SpaceX still must invest heavily to build a terrestrial network, integrate services and attract wireless customers. The launch of Blue Origin as a future public-company competitor may also increase attention on the space sector. SpaceX Makes Big Play to Become a Wireless Carrier
• Negative Sentiment: Up to approximately $51 billion of insider shares became eligible for sale, creating a potential supply overhang and volatility risk after the recent rally. SpaceX Insider Shares Unlock
• Negative Sentiment: Reports that SpaceX may borrow $40 billion to purchase Nvidia chips continue to raise concerns about leverage, execution and the risk of spending aggressively on an unproven AI infrastructure business despite its substantial cash holdings. SpaceX in Talks to Raise $40 Billion in Loans

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on the company. KGI Securities lowered SpaceX from an “outperform” rating to a “hold” rating in a research note on Monday, June 22nd. Clear Str upgraded shares of SpaceX to a “strong-buy” rating in a research note on Tuesday, July 7th. The Goldman Sachs Group reaffirmed a “buy” rating on shares of SpaceX in a report on Tuesday, September 29th. TD Cowen restated a “buy” rating and set a $200.00 target price on shares of SpaceX in a report on Friday. Finally, Royal Bank Of Canada reissued an “outperform” rating on shares of SpaceX in a report on Monday, September 28th. Three analysts have rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating, nine have assigned a Hold rating and six have assigned a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $219.77.

SpaceX Price Performance

The company has a current ratio of 5.12, a quick ratio of 4.99 and a debt-to-equity ratio of 0.29. The company has a market capitalization of $2.14 trillion and a PE ratio of -1,806.33. The business’s 50 day moving average price is $145.03.

SpaceX (NASDAQ:SPCX) last announced its quarterly earnings results on Tuesday, August 4th. The company reported ($0.09) EPS for the quarter, beating analysts’ consensus estimates of ($0.26) by $0.17. The company had revenue of $7.81 billion during the quarter. SpaceX’s revenue was up 91.9% compared to the same quarter last year. On average, sell-side analysts expect that SpaceX will post 0.09 earnings per share for the current fiscal year.

Insider Activity

In related news, COO Gwynne Shotwell sold 342,170 shares of the firm’s stock in a transaction on Tuesday, September 22nd. The stock was 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 approximately $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 can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Hedge Funds Weigh In On SpaceX

Several institutional investors have recently modified their holdings of SPCX. Integrated Financial Solutions Inc. increased its stake in SpaceX by 84.6% during the 3rd quarter. Integrated Financial Solutions Inc. now owns 3,230 shares of the company’s stock worth $487,000 after purchasing an additional 1,480 shares in the last quarter. Gallagher Capital Advisors LLC boosted its holdings in shares of SpaceX by 2,015.6% in the third quarter. Gallagher Capital Advisors LLC now owns 34,823 shares of the company’s stock valued at $5,253,000 after buying an additional 33,177 shares during the period. Armstrong Advisory Group Inc. increased its position in shares of SpaceX by 50.4% during the third quarter. Armstrong Advisory Group Inc. now owns 1,698 shares of the company’s stock worth $256,000 after acquiring an additional 569 shares in the last quarter. jvl associates llc bought a new stake in SpaceX in the 3rd quarter valued at $321,000. Finally, Friday Financial bought a new position in SpaceX during the 3rd quarter worth about $324,000.

SpaceX Company Profile

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.