SpaceX (NASDAQ:SPCX) Stock Falls 3.8% – Here’s Why

SpaceX (NASDAQ:SPCX) shares were down 3.8% during mid-day trading on Wednesday. The stock traded as low as $133.14 and last traded at $135.92. Approximately 134,424,851 shares traded hands during mid-day trading, an increase of 31% from the average session volume of 102,916,867 shares. The stock had previously closed at $141.31.

Key Headlines Impacting SpaceX

Here are the key news stories impacting SpaceX this week:

• Positive Sentiment: SpaceX selected Qualcomm to supply 5G infrastructure for its planned U.S. Starlink Mobile network, supporting its expansion into cellular service. SpaceX signs deal with Qualcomm to provide network technology for U.S. mobile service
• Positive Sentiment: Recent quarterly results showed 161% year-over-year revenue growth and a return to quarterly profitability, fueled by Starlink and rapid growth in its AI business. SpaceX Just Delivered a Monster Quarter
• Neutral Sentiment: The election results also raise uncertainty around a potential SpaceX-Tesla merger, which could face greater scrutiny and take longer to complete. A SpaceX-Tesla Merger Seems Inevitable. Here are 3 Things That Could Get in the Way
• Negative Sentiment: Democratic gains in Congress and key state races have investors concerned that tougher oversight or restrictions could slow data-center construction and complicate Musk’s AI expansion plans. Tesla and SpaceX shares slide as Musk’s political push falls flat
• Negative Sentiment: Investors are also questioning whether heavy AI-computing investment will generate adequate returns soon; high capital needs and SpaceX’s rich valuation add to the risk. SpaceX Stock Can Get a Lift From the Anthropic IPO, but SPCX Remains Unappealing

Analysts Set New Price Targets

SPCX has been the subject of a number of recent analyst reports. Sanford C. Bernstein set a $267.00 price objective on shares of SpaceX in a report on Monday, October 26th. William Blair reissued an “outperform” rating on shares of SpaceX in a research note on Friday, October 9th. Oppenheimer raised their target price on SpaceX from $250.00 to $280.00 and gave the company an “outperform” rating in a research report on Wednesday, September 2nd. Arete Research set a $450.00 price target on SpaceX in a research note on Tuesday, August 11th. Finally, Raymond James Financial reaffirmed a “strong-buy” rating on shares of SpaceX in a report on Wednesday, October 14th. Four research analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating, nine have assigned a Hold rating and three have given a Sell rating to the company. According to MarketBeat, SpaceX currently has an average rating of “Moderate Buy” and an average price target of $244.97.

SpaceX Stock Performance

The company has a market capitalization of $1.84 trillion and a PE ratio of 522.42. The business’s 50 day simple moving average is $149.68. The company has a current ratio of 3.08, a quick ratio of 3.00 and a debt-to-equity ratio of 0.20.

SpaceX (NASDAQ:SPCX) last posted its quarterly earnings data on Tuesday, October 20th. The company reported $0.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.10 by $0.25. The business had revenue of $14.57 billion for the quarter. SpaceX had a negative net margin of 8.61% and a negative return on equity of 3.24%. The business’s revenue for the quarter was up 161.4% on a year-over-year basis. During the same period in the previous year, the business earned ($0.36) earnings per share. Sell-side analysts anticipate that SpaceX will post 0.19 EPS for the current fiscal year.

Insiders Place Their Bets

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 sale, the chief operating officer directly owned 2,472,035 shares in the company, valued at approximately $379,630,414.95. The trade was a 12.16% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Trading of SpaceX

Institutional investors have recently made changes to their positions in the company. Syntax Research Inc. acquired a new stake in SpaceX during the 2nd quarter worth $26,000. Atwood & Palmer Inc. purchased a new position in shares of SpaceX in the second quarter worth about $29,000. PayPay Securities Corp acquired a new position in SpaceX during the second quarter worth about $30,000. Marquette Asset Management LLC purchased a new stake in SpaceX during the 2nd quarter valued at about $32,000. Finally, Hickory Point Bank & Trust purchased a new stake in SpaceX during the 3rd quarter valued at about $30,000.

SpaceX Company Profile

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.