SpaceX shares rose 3.7% to snap a seven-day losing streak, adding $48.96 billion in market cap and reclaiming its spot as the seventh-largest U.S. company. The gain coincides with an upcoming Starship rocket launch and the announcement of Q2 earnings on Aug 4, which triggers insider lockup expirations. Macquarie analysts view the pullback as a buying opportunity, maintaining an outperform rating with a $250 price target.
Plus, investors just found out when insiders can start dumping their shares
SpaceX's Starship rocket is key to the company's vast array of goals, including putting data centers in space.
SpaceX's stock climbed on Tuesday to snap a bruising seven-session losing streak.
The stock shed 21% during that period, creating a juicy buying opportunity for investors, according to Macquarie analysts led by Paul Golding. They wrote in a Monday note to clients that SpaceX's (SPCX) "story" is virtually unchanged even as its stock has taken a beating.
"We see the pullback presenting an opportunity to gain exposure to the leader across launch, communications and space infrastructure," Golding said. Macquarie rates SpaceX's stock at outperform with a $250 price target, implying room to more than double off Monday's closing price of $119.85 a share.
SpaceX shares bounced higher Tuesday, surging as much as 8.4% on an intraday basis. The stock closed the day up 3.7%, its biggest one-day gain since June 30, according to Dow Jones Market Data.
SpaceX added $48.96 billion in market cap on Tuesday, closing at $1.639 trillion, according to Dow Jones Market Data. That made it, once again, the seventh-largest U.S. company by market cap, taking back the spot it ceded to Meta Platforms (META) on Monday.
The gains come a day after SpaceX announced it would report second-quarter earnings on Aug. 4. Unlike most earnings-date announcements, SpaceX's timing is significant, as it reveals when insider lockup periods begin to expire.
On the second full trading day following the report - Aug. 6 - up to 911.5 million class A common shares held by SpaceX employees and investors will be made available for sale. Under certain conditions, up to 37% of insider shares that are subject to a 180-day lockup could be released in August. Stock held by CEO Elon Musk and select other insiders is subject to a longer lockup.
"Investors should monitor this event for potential volatility driven by both earnings performance and the supply overhang from the expiring lock-up," Clear Street Research analysts advised in a July 7 note to clients.
On Thursday, SpaceX plans another attempt at its 13th Starship rocket launch, a full week after it was forced to scrub the test. Proving the rocket to be a reliable launch vehicle is crucial for SpaceX to achieve its goals.
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