SpaceX (NASDAQ:SPCX) Stock Rating Raised to "Strong-Buy" at Barclays

Key Points

• Barclays upgraded SpaceX to “strong-buy,” adding to a consensus “Moderate Buy” rating and an average price target of $219.77, despite mixed views from other analysts.
• SpaceX reported quarterly revenue of $7.81 billion, up 91.9% year over year, and an adjusted loss of $0.09 per share that beat estimates by $0.17.
• Shares opened at $162.57, while risks include a major insider share sale, potential volatility from additional share unlocks, and reported plans to borrow heavily for Nvidia chip purchases.

SpaceX (NASDAQ:SPCX - Get Free Report) was upgraded by analysts at Barclays to a "strong-buy" rating in a report released on Friday, Zacks reports.

Other research analysts have also recently issued research reports about the stock. HSBC assumed coverage on shares of SpaceX in a research report on Thursday, July 23rd. They issued a "hold" rating and a $115.00 target price for the company. Seaport Research Partners downgraded SpaceX from a "buy" rating to a "neutral" rating in a research report on Friday, August 7th. DZ Bank began coverage on SpaceX in a report on Friday, August 21st. They issued a "sell" rating and a $100.00 price objective for the company. UBS Group reaffirmed a "buy" rating on shares of SpaceX in a research note on Tuesday, September 29th. Finally, Clear Str upgraded SpaceX to a "strong-buy" rating in a research report on Tuesday, July 7th. Three equities research analysts have rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating, nine have issued a Hold rating and six have assigned a Sell rating to the stock. Based on data from MarketBeat, SpaceX presently has a consensus rating of "Moderate Buy" and a consensus target price of $219.77.

SpaceX Price Performance

Shares of SPCX opened at $162.57 on Friday. The company has a debt-to-equity ratio of 0.29, a quick ratio of 4.99 and a current ratio of 5.12. The company has a market cap of $2.14 trillion and a P/E ratio of -1,806.33. SpaceX has a 12 month low of $104.83 and a 12 month high of $225.64. The stock's fifty day moving average is $145.03.

SpaceX (NASDAQ:SPCX - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The company reported ($0.09) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.26) by $0.17. The firm had revenue of $7.81 billion for the quarter. SpaceX's quarterly revenue was up 91.9% on a year-over-year basis. As a group, research analysts anticipate that SpaceX will post 0.09 earnings per share for the current year.

Insider Buying and Selling

In related news, COO Gwynne Shotwell sold 342,170 shares of the business's stock in a transaction that occurred on Tuesday, September 22nd. The stock was 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 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Institutional Trading of SpaceX

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

Key SpaceX News

Here are the key news stories impacting SpaceX this week:

• Positive Sentiment: The spectrum purchase—reported at roughly $8 billion by some outlets, although the exact price was not disclosed—could give Starlink Mobile stronger coverage indoors and in dense urban areas where satellites are less effective. The deal also positions SpaceX to compete more directly with AT&T, Verizon and T-Mobile. SpaceX's low-band spectrum deal gives Starlink Mobile a terrestrial foothold
• Positive Sentiment: Analyst support added to the bullish reaction. Barclays initiated coverage with a Buy rating and a $254 target, while TD Cowen reaffirmed Buy with a $200 target; other analysts highlighted the hybrid satellite-and-terrestrial network strategy. Two Reasons SpaceX Stock Is Jumping Higher Today
• Positive Sentiment: The FCC’s approval of up to 15,000 next-generation Starlink satellites strengthens the company’s long-term direct-to-device opportunity. Investors are also valuing SpaceX’s reported AI-computing demand and potential Nvidia chip purchases as additional growth engines. SpaceX Gets Green Light for 15,000 Starlink Satellites
• Neutral Sentiment: The spectrum transaction remains subject to final FCC approval, and SpaceX still must invest heavily to build a terrestrial network, integrate services and attract wireless customers. The launch of Blue Origin as a future public-company competitor may also increase attention on the space sector. SpaceX Makes Big Play to Become a Wireless Carrier
• Negative Sentiment: Up to approximately $51 billion of insider shares became eligible for sale, creating a potential supply overhang and volatility risk after the recent rally. SpaceX Insider Shares Unlock
• Negative Sentiment: Reports that SpaceX may borrow $40 billion to purchase Nvidia chips continue to raise concerns about leverage, execution and the risk of spending aggressively on an unproven AI infrastructure business despite its substantial cash holdings. SpaceX in Talks to Raise $40 Billion in Loans

SpaceX Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.