- SpaceX stock dipped below $150 before rebounding, marking a significant moment as it was lower than its market debut price.
- Insider selling pressure is expected to continue as more insiders gain permission to sell their shares, which could impact the stock's performance.
- Key dates for insider selling include around August 10 and September 10, which could lead to increased volatility in the stock price.
- SpaceX's stock has been volatile, having surged as much as 67% since its IPO on June 12, but has also fallen 35% from its peak.
- SpaceX's market cap has seen significant fluctuations, losing around $400 billion and threatening to dip below the $2 trillion level.
- SpaceX debuted with only about 5% of its roughly 13 billion outstanding shares, meaning more shares will become available in the coming months.
- Options data suggest a 40% chance that SpaceX shares could trade below $130 by mid-September, indicating potential further declines.
SpaceX stock fell below $150 for the first time since its IPO, reflecting a 3% decline to around $149 before rebounding. This drop is significant as it is lower than its market debut price of $150 on June 12.
The stock has seen a 67% surge since trading began but has also experienced a 35% decline from its peak of around $225. Currently, SpaceX's market cap has dropped by approximately $400 billion, threatening to dip below the $2 trillion mark.6
Analysts are concerned about the 20% insider share unlock expected after the earnings announcement in early to mid-August, which could lead to increased selling pressure. 22V Research highlights key dates for potential stock movements, including a 7% increase around August 21 and another 7% by September 10.4
The volatility is compounded by the fact that only 5% of SpaceX's 13 billion outstanding shares were available at IPO, with more shares becoming available in the coming months.
“Given what we know about the potential overhang from the upcoming unlocks by September 10, I believe selling calls against an existing (or any new buys) in SPCX should be strongly considered,” said Jeff Jacobson of 22V Research.
As the market anticipates these developments, investors are advised to watch for significant supply increases that could drive prices down further.
“SpaceX stock briefly fell below $150 before recovering, reflecting ongoing volatility. Insider selling pressure is expected to increase as key dates approach.”
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