SpaceX $SPCX Position Boosted by Pinnacle Associates Ltd.

Key Points

• Pinnacle Associates increased its SpaceX position by 269.1% in the third quarter, holding 11,741 shares valued at approximately $1.77 million. Several other major hedge funds also established sizable positions.
• SpaceX reported strong third-quarter results, with revenue rising 161.4% year over year to about $14.57 billion and EPS of $0.35 versus consensus of $0.10. Analyst sentiment was generally positive, with the stock carrying a “Moderate Buy” consensus rating and an average target price of $244.19.
• Despite growth prospects from AI and Starlink’s potential wireless expansion, cash-burn and execution risks remain: the company reportedly burned more than $9.9 billion in free cash flow, plans substantial debt financing, and faces launch-business losses and potential insider share sales.

Pinnacle Associates Ltd. grew its position in SpaceX (NASDAQ:SPCX - Free Report) by 269.1% during the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 11,741 shares of the company's stock after acquiring an additional 8,560 shares during the quarter. Pinnacle Associates Ltd.'s holdings in SpaceX were worth $1,771,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

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

Key Headlines Impacting SpaceX

Here are the key news stories impacting SpaceX this week:

• Positive Sentiment: Strong earnings and AI growth supported the rebound. SpaceX reported third-quarter revenue of $14.58 billion, up 161% year over year, and earnings per share of $0.35 versus analysts’ $0.10 estimate. Its AI segment reportedly generated $431 million in net income, helping offset losses in the launch business. Fantastic News for SpaceX Stock Investors
• Positive Sentiment: Analyst sentiment improved sharply. PhilipCapital upgraded SpaceX from “Sell” to “Buy” and raised its price target from $75 to $250. Bank of America also lifted its target to $275, citing stronger growth prospects and Starship milestones. SpaceX Just Scored a Double Upgrade
• Positive Sentiment: Wireless ambitions broaden the growth story. Reports that SpaceX is seeking access to at least 80,000 U.S. cell sites suggest Starlink could evolve into a nationwide wireless carrier, potentially creating a major new revenue stream. The news pressured telecom stocks while benefiting tower owners. SpaceX Seeks Access to 80,000 US Cell Sites
• Neutral Sentiment: A potential Tesla NASDAQ: TSLA merger remains speculative. Elon Musk called the combination a “good idea,” but valuation, conflicts of interest, shareholder approval, antitrust review and Tesla’s China operations could delay or prevent a transaction. SpaceX-Tesla Merger Chatter
• Negative Sentiment: Funding and cash-burn concerns remain significant. SpaceX reportedly burned more than $9.9 billion in free cash flow during the quarter and is raising approximately $40 billion of debt at relatively high interest rates to finance AI and other expansion plans. SpaceX $40 Billion Debt Deal
• Negative Sentiment: Execution and reputational risks could limit upside. The launch division was unprofitable because of heavy research spending, while reports of continuing Starlink restrictions in Ukraine could threaten government relationships and future contracts. In addition, upcoming insider share unlocks may increase supply. Ukraine Says Starlink Restrictions Remain

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on SPCX. JPMorgan Chase & Co. increased their price target on shares of SpaceX from $240.00 to $500.00 and gave the company an "overweight" rating in a report on Wednesday. Phillip Securities upgraded SpaceX to a "strong sell" rating and set a $75.00 price objective on the stock in a research report on Friday, July 31st. Oppenheimer raised their price objective on SpaceX from $250.00 to $280.00 and gave the company an "outperform" rating in a research note on Wednesday, September 2nd. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and issued a $235.00 target price on shares of SpaceX in a report on Monday, September 28th. Finally, Wells Fargo & Company boosted their target price on SpaceX from $214.00 to $274.00 and gave the company an "overweight" rating in a research report on Wednesday. Three equities research analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating, nine have assigned a Hold rating and four have assigned a Sell rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $244.19.

SpaceX Trading Up 1.9%

SPCX stock opened at $147.49 on Friday. The stock has a market cap of $1.94 trillion and a PE ratio of -1,638.78. SpaceX has a 12 month low of $104.83 and a 12 month high of $225.64. The business's 50-day moving average price is $149.40. The company has a debt-to-equity ratio of 0.29, a quick ratio of 4.99 and a current ratio of 5.12.

SpaceX (NASDAQ:SPCX - Get Free Report) last posted its quarterly earnings data on Tuesday, October 20th. The company reported $0.35 earnings per share for the quarter, topping analysts' consensus estimates of $0.10 by $0.25. The firm had revenue of $14.57 billion during the quarter. SpaceX's revenue for the quarter was up 161.4% compared to the same quarter last year. During the same quarter in the prior year, the business earned ($0.36) earnings per share. Sell-side analysts forecast that SpaceX will post 0.13 EPS for the current year.

Insider Activity at SpaceX

In other news, COO Gwynne Shotwell sold 342,170 shares of the company'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 transaction, the chief operating officer owned 2,472,035 shares of the company's stock, valued at approximately $379,630,414.95. This represents a 12.16% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

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.

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