SpaceX (NASDAQ:SPCX) Shares Up 7.8% Following Strong Earnings

SpaceX (NASDAQ:SPCX) rose 7.8% during trading on Wednesday following a better than expected earnings announcement. The company traded as high as $166.18 and last traded at $159.31. Approximately 217,592,731 shares traded hands during mid-day trading, an increase of 113% from the average daily volume of 102,177,539 shares. The stock had previously closed at $147.79.

The company reported $0.35 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.10 by $0.25. The company had revenue of $14.57 billion for the quarter. During the same period in the prior year, the business earned ($0.36) earnings per share. The firm’s revenue for the quarter was up 161.4% on a year-over-year basis.

More SpaceX News

Here are the key news stories impacting SpaceX this week:

• Positive Sentiment: Q3 results beat expectations. Revenue rose 161% year over year to approximately $14.58 billion, while earnings reached $0.35 per share versus the $0.10 consensus estimate. SpaceX also swung from a prior-year loss to roughly $4.4 billion in net income. SpaceX quarterly revenue jumps, beats estimates as AI business surges
• Positive Sentiment: AI is becoming the main growth engine. The Super Intelligence segment generated about $7.56 billion in revenue, up sharply year over year, and posted a $431 million operating profit. Management said demand from outside AI companies is strong and that new computing deployments can recover their cost in less than a year. AI rivals are thirsty for SpaceX’s compute
• Positive Sentiment: Forward visibility improved. SpaceX reported a backlog of roughly $63 billion and guided to $33 billion-$37 billion in first-quarter 2027 revenue. Analysts responded with higher targets, including JPMorgan’s increase to $500, Wells Fargo’s to $274 and TD Cowen’s to $224. JPMorgan doubles SpaceX stock price target
• Positive Sentiment: Merger speculation added another catalyst. Elon Musk said SpaceX and Tesla have formed independent committees to examine a potential combination, describing the idea as having “a lot of merit.” A merger could combine SpaceX’s AI and satellite infrastructure with Tesla’s vehicles and robotics, although no transaction is certain. SpaceX and Tesla boards form special committees

Wall Street Analysts Forecast Growth

Several analysts have issued reports on the stock. Erste Group Bank assumed coverage on shares of SpaceX in a research report on Thursday, October 8th. They issued a “hold” rating on the stock. Morgan Stanley reaffirmed an “overweight” rating on shares of SpaceX in a report on Wednesday. Wedbush started coverage on SpaceX in a research report on Tuesday, June 30th. They issued an “outperform” rating and a $190.00 price objective for the company. William Blair reaffirmed an “outperform” rating on shares of SpaceX in a report on Friday, October 9th. Finally, Barclays boosted their price target on SpaceX from $254.00 to $300.00 and gave the company an “overweight” rating in a research note on Wednesday. Three research analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating, nine have given a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $243.08.

Insider Activity

In related news, COO Gwynne Shotwell sold 342,170 shares of SpaceX stock in a transaction dated Tuesday, September 22nd. The stock was sold at an average price of $153.57, for a total value of $52,547,046.90. Following the completion of the transaction, the chief operating officer directly 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 ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Investors Weigh In On SpaceX

A number of hedge funds have recently added to or reduced their stakes in the stock. Income Insurance Ltd raised its stake in shares of SpaceX by 18.8% in the third quarter. Income Insurance Ltd now owns 1,900 shares of the company’s stock worth $287,000 after acquiring an additional 300 shares during the last quarter. Kraft Davis & Associates LLC bought a new stake in shares of SpaceX during the third quarter valued at approximately $392,000. Arcataur Capital Management LLC bought a new stake in shares of SpaceX during the third quarter valued at approximately $512,000. Element Pointe Advisors LLC bought a new stake in shares of SpaceX during the third quarter valued at approximately $750,000. Finally, Guardian Partners Inc. increased its holdings in shares of SpaceX by 81.7% in the third quarter. Guardian Partners Inc. now owns 20,118 shares of the company’s stock valued at $3,035,000 after purchasing an additional 9,043 shares in the last quarter.

SpaceX Stock Up 7.8%

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 firm’s fifty day moving average is $148.92. The company has a market capitalization of $2.10 trillion and a price-to-earnings ratio of -1,770.11.

About SpaceX

Space Exploration Technologies Corp., commonly known as SpaceX, is a privately held aerospace company founded in 2002 by Elon Musk. The company develops and operates launch vehicles and spacecraft designed to reduce the cost of access to space and support commercial, government and scientific missions.

SpaceX’s principal products and services include the Falcon 9 and Falcon Heavy rockets, the Dragon spacecraft and the Starlink satellite communications network. Falcon rockets are used to launch satellites, cargo and crew, while Dragon spacecraft support transportation to and from low Earth orbit.