SpaceX (NASDAQ:SPCX) Stock Falls 2.8% – Here’s Why

SpaceX (NASDAQ:SPCX) dropped 2.8% during mid-day trading on Wednesday. The company traded as low as $151.10 and last traded at $152.16. Approximately 65,960,463 shares traded hands during mid-day 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 Summary

Here are the key news stories impacting SpaceX this week:

• Positive Sentiment: Tesla’s unveiling of a redesigned Roadster using SpaceX-inspired thrusters renewed speculation that Tesla and SpaceX could eventually combine their engineering and artificial-intelligence operations. Analysts Dan Ives and Ross Gerber said the demonstration strengthened the case for a potential transaction, although neither company has announced a deal. Dan Ives on Tesla-SpaceX merger speculation
• Positive Sentiment: SpaceX and Nvidia are reportedly collaborating on space-based AI data centers, with initial satellite launches targeted for 2027. The project could create a new long-term growth opportunity beyond launch services and Starlink. SpaceX and Nvidia AI data-center collaboration
• Positive Sentiment: Starlink continues expanding its commercial footprint: United Airlines plans to offer the service on 635 aircraft, while American Airlines has announced installations on more than 1,030 planes. SpaceX also completed recent Falcon 9 and Cargo Dragon missions, supporting execution credibility. SpaceX expands Starlink airline coverage
• Neutral Sentiment: Ukraine-related reports indicate that full Starlink or Starshield access may have been restored, potentially reducing an immediate operational and reputational risk. However, the episode keeps attention on SpaceX’s control over critical military communications. The SpaceX-Ukraine situation
• Negative Sentiment: Ukraine’s earlier claims that Starlink restrictions disrupted military drone operations have intensified political and customer-concentration concerns. SpaceX is also scheduled to testify before the New York City Council in an AI safety investigation, adding regulatory headline risk. SpaceX AI safety investigation testimony
• Negative Sentiment: Investors remain concerned that SpaceX’s roughly $2 trillion valuation assumes exceptionally strong future growth, while an approaching insider share-unlock event could increase supply and pressure the stock. SpaceX insider share unlock concerns

Analyst Ratings Changes

A number of brokerages have weighed in on SPCX. Argus raised SpaceX from a “hold” rating to a “buy” rating and set a $160.00 target price for the company in a research report on Friday, August 7th. JPMorgan Chase & Co. reissued a “buy” rating on shares of SpaceX in a research report on Tuesday, August 25th. Roth Capital upgraded SpaceX to a “buy” rating in a research note on Monday, June 22nd. Daiwa Securities Group initiated coverage on SpaceX in a report on Thursday, July 2nd. They issued a “neutral” rating and a $175.00 price objective for the company. Finally, Evercore restated an “outperform” rating and issued a $275.00 price target on shares of SpaceX in a report on Friday. Three research analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, nine have assigned a Hold rating and five have issued a Sell rating to the company’s stock. According to MarketBeat.com, SpaceX presently has a consensus rating of “Moderate Buy” and an average target price of $221.34.

SpaceX Trading Down 2.1%

The business has a 50-day moving average price of $148.19. The company has a market capitalization of $1.92 trillion and a P/E ratio of -1,616.01. 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 quarterly earnings data on Tuesday, August 4th. The company reported ($0.09) EPS for the quarter, topping the consensus estimate of ($0.26) by $0.17. The company had revenue of $7.81 billion during the quarter. The business’s revenue for the quarter was up 91.9% on a year-over-year basis. Equities research analysts anticipate that SpaceX will post 0.07 EPS for the current year.

Insider Activity

In other news, COO Gwynne Shotwell sold 342,170 shares of the firm’s stock in a transaction dated 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 directly owned 2,472,035 shares in the company, valued at $379,630,414.95. This trade represents a 12.16% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Hedge Funds Weigh In On SpaceX

A number of large investors have recently bought and sold shares of SPCX. SC US Ttgp LTD. purchased a new position in SpaceX in the 2nd quarter valued at about $20,933,621,000. Darsana Capital Partners LP acquired a new position in shares of SpaceX during the 2nd quarter worth approximately $17,335,783,000. K5 Global Advisor LLC acquired a new stake in shares of SpaceX in the second quarter valued at approximately $6,587,531,000. State Street Corp purchased a new position in SpaceX during the second quarter worth approximately $1,858,329,000. Finally, Dragoneer Investment Group LLC acquired a new position in SpaceX during the second quarter worth $1,366,880,000.

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.