SpaceX shares rebound as lockup countdown comes into view
SpaceX stock rose as much as 8% Tuesday after a seven-session slide, while investors got a date for a major insider-share release.
By Frankie Delgado · News Reporter
3 min read
SpaceX shares were charging higher Tuesday, with the stock rising as much as 8% intraday after a rough seven-session skid, according to MarketWatch.
The move put the company on track to break a losing run that had erased 21% from the stock. Dow Jones Market Data said that, if the gain held, Tuesday would rank as SpaceX’s second-strongest trading day since its initial public offering last month.
Macquarie analysts led by Paul Golding told clients Monday that the selloff had not changed their view of the company’s prospects. Golding said the pullback offered a chance to buy into a leader in launch services, communications and space infrastructure.
Macquarie has an outperform rating on SpaceX and a $250 price target. Based on Monday’s closing price of $119.85, that target would imply the stock could more than double, MarketWatch reported.
Market value swings back
The rebound was doing more than lifting the share price. Dow Jones Market Data said SpaceX was on pace to add $125 billion in market capitalization Tuesday, roughly equal to the market value of Capital One Financial.
That would put SpaceX back in seventh place among U.S. companies by market value, according to Dow Jones Market Data. The company had lost that slot to Meta Platforms on Monday.
The stock move followed SpaceX’s announcement that it will report second-quarter earnings on Aug. 4. For most companies, an earnings date is routine. For SpaceX investors, MarketWatch noted, the timing also starts the clock on when certain insiders can begin selling shares.
On Aug. 6, the second full trading day after the earnings report, as many as 911.5 million class A common shares held by employees and investors will become eligible for sale, according to MarketWatch.
Under certain conditions, up to 37% of insider shares covered by a 180-day lockup could be released in August. Shares held by Chief Executive Elon Musk and some other insiders are under a longer lockup, MarketWatch reported.
Clear Street Research analysts warned clients in a July 7 note that investors should watch the event because earnings results and the added supply from expiring lockups could create volatility.
Starship test also looms
SpaceX is also preparing for another major test in its rocket program. The company plans to attempt its 13th Starship launch on Thursday, one week after the prior test was scrubbed, according to MarketWatch.
MarketWatch reported that proving Starship can operate as a reliable launch vehicle is central to SpaceX’s broader plans.
The Tuesday bounce gives traders a sharp reversal after the stock’s post-IPO slide. The next tests are now lined up fast: an earnings report, a potential flood of insider shares, and another Starship launch attempt within days.
This story draws on original reporting from MarketWatch.