SpaceX (NASDAQ:SPCX) Stock Falls 2.3% – Should You Sell?

SpaceX (NASDAQ:SPCX) shares dropped 2.3% during mid-day trading on Wednesday. The company traded as low as $142.13 and last traded at $145.23. Approximately 96,876,956 shares traded hands during mid-day trading, a decline of 6% from the average session volume of 103,189,672 shares. The stock had previously closed at $148.58.

SpaceX News Roundup

Here are the key news stories impacting SpaceX this week:

• Positive Sentiment: Starlink continues to scale. The satellite-internet business added 1.6 million customers in the third quarter, while average revenue per user increased sequentially. Starlink remains SpaceX’s largest source of operating profit, supporting the company’s recurring-revenue outlook. SpaceX’s Starlink Just Added 1.6 Million Customers
• Positive Sentiment: Recent results and analyst support remain favorable. Third-quarter revenue rose 161% year over year to approximately $14.6 billion, with reported earnings well above expectations. Bernstein raised its price target to $268, and Bank of America added SPCX to its “US 1” list, citing growth in AI infrastructure, Starlink and potential orbital data centers. SpaceX stock rises, why analysts see more upside
• Neutral Sentiment: SpaceX is expanding beyond rockets and connectivity. Management is positioning its renamed “Super Intelligence” division as a major growth engine, while Starship cost reductions and plans for much higher launch capacity could improve long-term economics. However, these forecasts depend on execution and have not been fully proven. Elon Musk Says SpaceX Is Now a Super Intelligence Company
• Negative Sentiment: AI investment is creating financial risk. SpaceX committed to roughly $40 billion in debt financing for GPUs, while most capital expenditures are directed toward AI infrastructure. Analysts warn that AI revenue concentration, potential customer failures and the need to continually raise capital could pressure returns if growth slows. SpaceX’s AI Boom Has Yet To Pay for Its Build-Out
• Negative Sentiment: Valuation and execution concerns are limiting enthusiasm. The stock has lagged smaller space companies, and investors remain cautious about its very high valuation, a potential share issuance, a six-week pause in Florida launches and the enormous cost of entering wireless service. These concerns are offsetting the strong quarterly performance. SpaceX Falls Despite Fitch Holding Rating

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on SPCX. Royal Bank Of Canada restated an “outperform” rating on shares of SpaceX in a research note on Monday, October 19th. Moffett Nathanson increased their target price on shares of SpaceX from $131.00 to $142.00 and gave the company a “neutral” rating in a research report on Monday, September 14th. Stifel Nicolaus began coverage on shares of SpaceX in a research report on Tuesday, July 7th. They issued a “buy” rating and a $190.00 price target on the stock. Wedbush initiated coverage on shares of SpaceX in a research note on Tuesday, June 30th. They set an “outperform” rating and a $190.00 target price for the company. Finally, Yorkville Ives initiated coverage on shares of SpaceX in a research report on Tuesday, October 6th. They issued an “outperform” rating and a $225.00 price target on the stock. Four equities 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 assigned a Sell rating to the stock. Based on data from MarketBeat, SpaceX presently has a consensus rating of “Moderate Buy” and an average target price of $244.97.

SpaceX Price Performance

The company has a current ratio of 3.08, a quick ratio of 3.00 and a debt-to-equity ratio of 0.20. The firm has a market cap of $1.91 trillion and a P/E ratio of 558.58. The firm’s fifty day simple moving average is $149.43.

SpaceX (NASDAQ:SPCX) last released its quarterly earnings data on Tuesday, October 20th. The company reported $0.35 earnings per share for the quarter, beating the consensus estimate of $0.10 by $0.25. SpaceX had a negative net margin of 8.61% and a negative return on equity of 3.24%. The firm had revenue of $14.57 billion for the quarter. During the same quarter in the prior year, the company posted ($0.36) EPS. The firm’s quarterly revenue was up 161.4% compared to the same quarter last year. On average, equities analysts anticipate that SpaceX will post 0.13 earnings per share for the current year.

Insider Activity

In related news, COO Gwynne Shotwell sold 342,170 shares of the firm’s stock in a transaction that occurred 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 transaction, the chief operating officer owned 2,472,035 shares of the company’s stock, valued at approximately $379,630,414.95. This trade represents a 12.16% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, 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

Institutional investors and hedge funds have recently modified their holdings of the business. Outlook Wealth Advisors LLC acquired a new position in SpaceX during the third quarter worth $224,000. Parcion Private Wealth LLC bought a new position in shares of SpaceX in the 3rd quarter valued at approximately $33,030,000. Partners Wealth Management LLC bought a new stake in shares of SpaceX during the 3rd quarter worth $1,519,000. Soltis Investment Advisors LLC increased its stake in shares of SpaceX by 635.7% in the third quarter. Soltis Investment Advisors LLC now owns 44,622 shares of the company’s stock worth $6,732,000 after purchasing an additional 38,557 shares during the period. Finally, Founders Financial Securities LLC boosted its holdings in SpaceX by 84.6% in the 3rd quarter. Founders Financial Securities LLC now owns 7,135 shares of the company’s stock valued at $1,076,000 after purchasing an additional 3,269 shares during the period.

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.