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

SpaceX (NASDAQ:SPCX) shares were down 2.8% on Wednesday. The company traded as low as $151.10 and last traded at $152.16. Approximately 65,960,463 shares changed hands during trading, a decline of 35% from the average session volume of 101,209,547 shares. The stock had previously closed at $156.54.

Key Headlines Impacting SpaceX

Here are the key news stories impacting SpaceX this week:

• Positive Sentiment: Starlink reportedly added approximately 570,000 subscribers per month in the second quarter, reinforcing its role as SpaceX’s primary profitable growth business. Starlink subscriber growth
• Positive Sentiment: SpaceX successfully delivered about 6,300 pounds of cargo to the International Space Station, demonstrating continued Falcon 9 execution and supporting the company’s launch business. NASA resupply mission
• Positive Sentiment: Several analysts remained bullish: Morgan Stanley reiterated an Overweight rating with a $300 target, while Raymond James maintained a Strong Buy and an $800 target, providing support for the long-term investment case. Morgan Stanley price target
• Positive Sentiment: The company’s acquisition of low-band wireless spectrum could enable broader Starlink Mobile coverage and expand SpaceX into telecommunications, although the opportunity requires substantial investment. SpaceX spectrum deal
• Neutral Sentiment: SpaceX is seeking approval to conduct as many as 456 Starship launches and landings annually. The proposal could materially expand capacity, but it remains subject to a federal environmental review and is far above the company’s current flight cadence. Starship expansion proposal
• Neutral Sentiment: An October 24 share unlock could increase the tradable supply of SpaceX stock, though previous unlocks have not consistently produced significant selling pressure. SpaceX share unlocks
• Negative Sentiment: Ukraine reported that new Starlink restrictions, including slower service and a reported speed limit for military terminals, disrupted drone and other frontline operations. The allegations raise reputational, political and potential government-contract risks for SpaceX. Ukraine Starlink restrictions
• Negative Sentiment: Investors remain concerned that SpaceX’s wireless and AI ambitions will require billions of dollars in additional capital, including a proposed $40 billion debt raise. Analysts also question whether Starlink Mobile can compete with terrestrial networks. SpaceX financing needs
• Negative Sentiment: A broader U.S. equity sell-off overshadowed the successful NASA launch, while the company’s ambitious expansion plans intensified concerns about valuation, execution risk and future cash burn. Why SpaceX shares declined

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on SPCX shares. Bank of America started coverage on SpaceX in a research note on Tuesday, July 7th. They issued a “buy” rating and a $235.00 target price for the company. HSBC began coverage on SpaceX in a report on Thursday, July 23rd. They issued a “hold” rating and a $115.00 price objective on the stock. William Blair restated an “outperform” rating on shares of SpaceX in a research note on Friday, October 9th. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and set a $235.00 target price on shares of SpaceX in a report on Monday, September 28th. Finally, Barclays assumed coverage on SpaceX in a report on Friday, October 9th. They set an “overweight” rating and a $254.00 target price for the company. Three equities research analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, nine have given a Hold rating and five have given a Sell rating to the company. Based on data from MarketBeat.com, SpaceX has an average rating of “Moderate Buy” and a consensus target price of $220.06.

SpaceX Trading Down 2.8%

The firm’s fifty day moving average price is $146.63. 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 company has a market capitalization of $2.01 trillion and a price-to-earnings ratio of -1,690.67.

SpaceX (NASDAQ:SPCX) last announced its quarterly earnings results on Tuesday, August 4th. The company reported ($0.09) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.26) by $0.17. The company had revenue of $7.81 billion during the quarter. SpaceX’s quarterly revenue was up 91.9% compared to the same quarter last year. As a group, research analysts forecast that SpaceX will post 0.07 earnings per share for the current fiscal year.

Insider Transactions at SpaceX

In related news, COO Gwynne Shotwell sold 342,170 shares of the firm’s stock in a transaction on Tuesday, September 22nd. The shares were sold at an average price of $153.57, for a total transaction of $52,547,046.90. Following the sale, the chief operating officer owned 2,472,035 shares in the company, valued at approximately $379,630,414.95. This trade represents a 12.16% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Hedge Funds Weigh In On SpaceX

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

About SpaceX

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.