Shares of space companies came under pressure this week as Rocket Lab and SpaceX both traded lower amid separate developments. Rocket Lab USA, Inc. (RKLB) fell 4% on Monday to close at $65.71, down from $68.21 in the previous session, and slipped further in pre-market trading Tuesday to about $64.93. The stock has lost 13% over the past week and remains below its 50-day average of $70.52 and its 200-day average of $84.44.
Rocket Lab’s decline came despite reports that a Japanese satellite company signed a contract for 20 additional dedicated Electron launches, helping push the company’s backlog to a record $2.36 billion as of June 30. NASA is also reportedly weighing bulk rocket purchases for a lunar-base effort estimated at $30 billion, which has increased attention on Rocket Lab’s Neutron rocket, a vehicle that has not yet flown. However, insider selling and competitive risks weighed on sentiment. Chief Financial Officer Adam Spice sold 140,157 shares for about $9.93 million on October 1 under a pre-set Rule 10b5-1 trading plan adopted in June, while insiders have sold roughly $26.96 million worth of stock over the past 90 days. Analysts remain mostly constructive, with a Moderate Buy rating and an average price target of $104.71, though TD Cowen recently lowered its target from $120 to $90. Citigroup started coverage with a Buy rating and a $105 target, and Barclays initiated coverage with Overweight.
Separately, SpaceX stock SPCX fell 4% on Tuesday after the Federal Aviation Administration said it would prepare an environmental impact statement and hold public hearings on the company’s proposal to expand operations at its Starbase facility in South Texas. SpaceX is seeking to eventually conduct up to 456 launches and 912 landings per year, a major increase from its current authorization of 25 launches and 50 landings annually. The expansion would occur in phases, starting with up to 100 Starship launches and 200 landings per year before rising to the higher limits as reliability improves. The FAA review will assess effects on coastal resources, wildlife, air quality and commercial aviation. SpaceX continues to fly its Falcon 9 system, with more than 110 launches this year and a Dragon cargo mission to the International Space Station launched early Tuesday. The company has not yet achieved full reusability for Starship, and executives hope to land both the spacecraft and Super Heavy booster at Starbase before the end of the year.
