Firefly Aerospace (NASDAQ:FLY) Shares Gap Down – Time to Sell?

Firefly Aerospace, Inc. (NASDAQ:FLY)’s share price gapped down prior to trading on Tuesday . The stock had previously closed at $28.60, but opened at $26.28. Firefly Aerospace shares last traded at $26.4640, with a volume of 492,260 shares.

Trending Headlines about Firefly Aerospace

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

• Positive Sentiment: Inclusion in major indexes: Firefly was added to the Russell 2000 and Russell 3000, a mechanical event that typically triggers buying from index funds and ETF reconstitution flows and helped drive the intraday rally. Russell inclusion
• Positive Sentiment: Sector tailwinds: Broad space-equity strength and headlines about accelerating government/private space activity boosted sentiment across the group, amplifying FLY’s move higher. Sector optimism
• Positive Sentiment: Commercial activity update: Firefly announced a payload agreement with Volta Space Technologies, underlining ongoing commercial revenue opportunities (smaller catalyst but supportive). Payload agreement
• Neutral Sentiment: News coverage/analysis: Several outlets explained the rally (index inclusion, sector momentum), useful for investors but largely descriptive rather than new company-specific fundamentals. Coverage of rally
• Negative Sentiment: Multiple class‑action notices and filings: Several law firms (Levi & Korsinsky, The Gross Law Firm, Bronstein Gewirtz & Grossman, Schall, Faruqi & Faruqi, Portnoy and others) have filed or solicited lead‑plaintiff motions alleging securities violations related to Firefly’s Aug 7, 2025 IPO and an August–September 2025 class period; the January 12, 2026 lead‑plaintiff deadline is cited. This creates potential legal costs, distraction and investor uncertainty that can weigh on the stock. Levi & Korsinsky notice Gross Law Firm Bronstein notice

Analyst Ratings Changes

A number of research firms have weighed in on FLY. Morgan Stanley cut their target price on shares of Firefly Aerospace from $52.00 to $27.00 and set an “equal weight” rating for the company in a research report on Monday, November 17th. Zacks Research raised Firefly Aerospace to a “hold” rating in a research report on Thursday, September 4th. Cantor Fitzgerald started coverage on Firefly Aerospace in a report on Tuesday, September 2nd. They issued an “overweight” rating and a $65.00 target price on the stock. Wall Street Zen downgraded Firefly Aerospace from a “hold” rating to a “sell” rating in a research report on Friday, September 5th. Finally, Jefferies Financial Group raised Firefly Aerospace to a “strong-buy” rating in a research report on Tuesday, September 2nd. 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 assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $38.43.

Firefly Aerospace Stock Performance

The company’s 50 day moving average price is $21.91.

Firefly Aerospace (NASDAQ:FLY) last issued its quarterly earnings results on Wednesday, November 12th. The company reported ($0.33) earnings per share (EPS) 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 business’s revenue for the quarter was up 37.5% compared to the same quarter last year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of FLY. Hudson Bay Capital Management LP acquired a new stake in Firefly Aerospace during the third quarter worth $50,711,000. Tudor Investment Corp ET AL bought a new position in shares of Firefly Aerospace during the 3rd quarter worth about $19,899,000. BlueCrest Capital Management Ltd acquired a new stake in shares of Firefly Aerospace during the 3rd quarter valued at about $14,035,000. Liontrust Investment Partners LLP acquired a new stake in shares of Firefly Aerospace during the 3rd quarter valued at about $1,790,000. Finally, CIBC Private Wealth Group LLC bought a new stake in Firefly Aerospace in the third quarter valued at about $26,000.

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.