SpaceX (NASDAQ:SPCX) Sees Large Volume Increase – Still a Buy?

Shares of SpaceX (NASDAQ:SPCX) saw unusually-strong trading volume on Thursday . 88,950,078 shares traded hands during mid-day trading, a decline of 15% from the previous session’s volume of 104,686,766 shares.The stock last traded at $110.1790 and had previously closed at $108.27.

SpaceX News Summary

Here are the key news stories impacting SpaceX this week:

• Positive Sentiment: Lockup pressure was less severe than feared. Approximately 911.5 million shares became eligible for trading, more than doubling SpaceX’s public float. However, the stock remained resilient, suggesting that selling may have been largely anticipated and that existing shareholders and retail investors were willing to support the shares. SpaceX’s stock is having one of its best days ever with the first lockup expiration now behind it
• Positive Sentiment: Analysts turned more constructive. Argus upgraded SpaceX to Buy and set a $160 price target, citing accelerating AI revenue, cloud contracts and a potential payback period of less than one year for new AI spending. JPMorgan also raised its target, reinforcing the bullish view on SpaceX’s compute opportunity. SpaceX Stock Just Scored a New Buy Rating
• Positive Sentiment: Quarterly growth remains impressive. SpaceX reported revenue of $7.81 billion, up 91.9% year over year, and a smaller-than-expected loss of $0.09 per share. Reports also highlighted $20.8 billion of combined AI cloud contracts, $2.56 billion in AI revenue and continued profitability at Starlink. SpaceX Signed $14.1 Billion of Cloud Contracts in a Single Quarter
• Positive Sentiment: AI infrastructure plans are expanding. SpaceX’s partnership with Nvidia to deploy next-generation hardware in terrestrial and orbital data centers, along with the planned $16.8 billion Terafab chip factory with Tesla, strengthens the company’s long-term AI and compute narrative. SpaceX’s Terafab will rely on natural gas power plants
• Neutral Sentiment: Speculation about a SpaceX-Tesla merger or tracking-stock structure added attention but remains unconfirmed. Jefferies characterized the possibility as uncertain rather than an immediate catalyst. Jefferies weighs in on SpaceX-Tesla merger speculation
• Negative Sentiment: Risks remain substantial. SpaceX is committing roughly $15.8 billion of quarterly capital spending to AI and remains GAAP-loss-making. Additional staged unlocks through December could create further supply, while concerns about contract cancellations, valuation and the execution of Starlink Mobile continue to limit investor conviction.

Analysts Set New Price Targets

SPCX has been the topic of several recent research reports. Piper Sandler dropped their target price on SpaceX from $156.00 to $140.00 and set a “neutral” rating on the stock in a research report on Wednesday. Deutsche Bank Aktiengesellschaft initiated coverage on SpaceX in a research report on Tuesday, July 7th. They issued a “buy” rating and a $255.00 price target for the company. Raymond James Financial cut SpaceX from a “strong-buy” rating to an “underperform” rating in a report on Friday. Susquehanna downgraded SpaceX from a “neutral” rating to an “underperform” rating in a research note on Friday. Finally, Benchmark initiated coverage on SpaceX in a report on Monday, June 22nd. They set a “buy” rating for the company. Two research analysts have rated the stock with a Strong Buy rating, twenty-five have assigned a Buy rating, eight have given a Hold rating and five have given a Sell rating to the company’s stock. According to data from MarketBeat, SpaceX currently has an average rating of “Moderate Buy” and an average price target of $227.31.

SpaceX Stock Up 15.8%

The stock has a 50 day moving average of $143.35. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.11 and a current ratio of 5.12.

SpaceX (NASDAQ:SPCX) last posted its quarterly earnings data on Tuesday, August 4th. The company reported ($0.09) earnings per share for the quarter, beating the consensus estimate of ($0.26) by $0.17. The company had revenue of $7.81 billion for the quarter. The business’s revenue was up 91.9% on a year-over-year basis. As a group, sell-side analysts expect that SpaceX will post -0.28 earnings per share for the current year.

Hedge Funds Weigh In On SpaceX

A number of hedge funds and other institutional investors have recently modified their holdings of SPCX. Atwood & Palmer Inc. bought a new stake in SpaceX in the 2nd quarter worth approximately $29,000. Marquette Asset Management LLC purchased a new position in shares of SpaceX during the second quarter worth approximately $32,000. Burkett Financial Services LLC purchased a new position in shares of SpaceX during the second quarter worth approximately $70,000. Contravisory Investment Management Inc. bought a new stake in shares of SpaceX in the 2nd quarter worth approximately $73,000. Finally, Thurston Springer Miller Herd & Titak Inc. purchased a new stake in shares of SpaceX in the 2nd quarter valued at $89,000.

SpaceX Company Profile

SpaceX, or Space Exploration Technologies Corp., is an American aerospace company focused on the design, manufacture and launch of advanced rockets and spacecraft. The company develops launch vehicles and space systems used for commercial, government and scientific missions, with a strong emphasis on lowering the cost of access to space through reusable rocket technology.

Founded in 2002 by Elon Musk, SpaceX has built a broad portfolio of products and services that includes the Falcon 9 and Falcon Heavy rockets, the Dragon spacecraft and the Starship development program.