SpaceX (NASDAQ:SPCX) Trading Down 4.2% - Time to Sell?

Key Points

• SpaceX (NASDAQ:SPCX) fell 4.2% on Monday, trading as low as $136.78 before closing at $139.14 on lighter-than-normal volume. The move adds to recent weakness in the stock.
• The article says the main pressure comes from valuation concerns, with the stock dropping below its IPO/debut area and critics warning that additional tradable shares could create more downside.
• Despite the selloff, sentiment remains mixed to constructive: analysts still cite upside from Starlink, Starship, and AI-related opportunities, while the FAA has cleared SpaceX to fly Starship again after the prior booster failure.

SpaceX (NASDAQ:SPCX - Get Free Report) shares dropped 4.2% on Monday . The stock traded as low as $136.78 and last traded at $139.14. Approximately 70,886,582 shares changed hands during trading, a decline of 45% from the average daily volume of 129,961,719 shares. The stock had previously closed at $145.30.

Key Headlines Impacting SpaceX

Here are the key news stories impacting SpaceX this week:

• Positive Sentiment: Wall Street commentary remains constructive for the long term, with Bernstein and Bank of America reportedly still seeing significant upside despite the recent pullback, and some analysts pointing to Starlink, Starship progress, and AI-related opportunities as potential catalysts. Article Title
• Positive Sentiment: SpaceX gained another credibility boost after the FAA cleared the company to fly Starship again following its prior booster failure, supporting the company’s launch cadence and Starlink deployment plans. Article Title
• Positive Sentiment: Institutional interest appears to be holding up, with reports that Cathie Wood bought tens of millions of dollars of SpaceX shares as the stock weakened, and that some lawmakers disclosed purchases around the IPO. Article Title
• Neutral Sentiment: SpaceX’s recent Nasdaq-100 inclusion is driving discussion about ETF rebalancing and index demand, but the stock’s free-float structure means the passive-fund impact may be smaller than many investors expected. Article Title
• Negative Sentiment: The main drag on SpaceX (SPCX) is renewed valuation pressure: multiple articles highlighted the stock falling below its debut/IPO area, record lows since listing, and a sharp post-IPO correction that has erased a large portion of its market value. Article Title
• Negative Sentiment: Bearish commentary is also building around a possible lock-up/floating-share overhang, with critics warning that more tradable shares could hit the market and pressure the stock further. Article Title
• Negative Sentiment: Several reports also tied the weakness to broader market pressure and negative sentiment around Musk’s ambitious AI and orbital-data-center plans, which some investors view as overhyped or difficult to execute. Article Title

Analyst Upgrades and Downgrades

Several brokerages have commented on SPCX. Zacks Research upgraded shares of SpaceX to a "hold" rating in a research note on Monday, June 15th. Citigroup began coverage on SpaceX in a report on Tuesday, July 7th. They issued a "buy" rating and a $200.00 target price on the stock. New Street Research upgraded SpaceX to a "strong-buy" rating in a research report on Thursday, June 11th. Raymond James Financial began coverage on SpaceX in a research note on Tuesday, July 7th. They set a "strong-buy" rating and a $800.00 price target for the company. Finally, TD Cowen began coverage on SpaceX in a research note on Monday, June 22nd. They issued a "buy" rating on the stock. Four research analysts have rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $239.12.

SpaceX Stock Down 4.6%

SpaceX (NASDAQ:SPCX - Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The company reported ($1.27) EPS for the quarter. The company had revenue of $4.69 billion for the quarter.

Hedge Funds Weigh In On SpaceX

A number of institutional investors and hedge funds have recently modified their holdings of SPCX. Atwood & Palmer Inc. bought a new position in SpaceX during the second quarter valued at $29,000. Beacon Investment Advisory Services Inc. purchased a new position in shares of SpaceX during the 2nd quarter worth about $174,000. Strategic Investment Solutions Inc. IL bought a new position in SpaceX during the 2nd quarter valued at about $181,000. Teamwork Financial Advisors LLC bought a new position in SpaceX during the 2nd quarter valued at about $8,027,000. Finally, Ebert Capital Management Inc. purchased a new stake in SpaceX in the 2nd quarter worth about $647,000.

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.

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