Chicago Partners boosts SpaceX stake as company reports strong quarterly revenue

Chicago Partners' larger stake

MarketBeat reports that Chicago Partners Investment Group LLC increased its SpaceX position by 947.0% in the third quarter, based on its latest Form 13F filing with the Securities and Exchange Commission. The fund added 97,351 shares during the period and finished with 107,631 shares. MarketBeat says the holding was valued at $15,875,000 at the end of the reporting period.

Other recent institutional activity

The report says other hedge funds and institutional investors also recently changed their SpaceX positions. Syntax Research Inc. took a new position in the second quarter valued at $26,000. Atwood & Palmer Inc. reported a new stake in the second quarter worth about $29,000. PayPay Securities Corp also established a new stake in the second quarter worth about $30,000. Marquette Asset Management LLC bought a new stake in the second quarter worth about $32,000, and Hickory Point Bank & Trust bought a new stake in the third quarter worth about $30,000.

Stock performance and quarterly results

MarketBeat says SPCX opened Thursday at $135.92. The article lists a current ratio of 3.08, a quick ratio of 3.00 and a debt-to-equity ratio of 0.20. It also says the stock has ranged from a 52-week low of $104.83 to a 52-week high of $225.64. MarketBeat reports a market value of $1.85 trillion, a price-to-earnings ratio of 522.77 and a 50-day moving average of $149.64.

The company’s latest earnings report, issued on Tuesday, October 20, showed earnings per share of $0.35 for the quarter. MarketBeat says that was $0.25 above the analyst consensus estimate of $0.10. Quarterly revenue was $14.57 billion, which the report says was up 161.4% from the same period a year earlier. In the prior-year quarter, the business posted a loss of $0.36 per share. MarketBeat also says SpaceX had a negative return on equity of 3.24% and a negative net margin of 8.61%. Analysts surveyed by the outlet expect full-year earnings per share of $0.19.

News items and investor concerns

In its roundup of recent headlines, MarketBeat says SpaceX chose Qualcomm to supply 5G network technology for Starlink Mobile. The report says that decision supports SpaceX’s plan to build a nationwide wireless service and could create a new revenue stream. MarketBeat also says recent results showed strong revenue growth and rapid expansion in the company’s Super Intelligence segment, but that the AI build-out requires heavy spending and that the eventual return remains uncertain.

The article further says Democratic gains in Congress and in key state races have increased concern about tighter oversight of AI data centers and possible obstacles to SpaceX’s infrastructure plans. It also says the election outcome has added uncertainty around a possible SpaceX-Tesla merger. A separate item in the roundup says investors remain worried about high spending, execution risk and a valuation that depends heavily on future growth.

Insider sale and analyst views

MarketBeat reports that COO Gwynne Shotwell sold 342,170 shares on Tuesday, September 22, at an average price of $153.57. The sale totaled $52,547,046.90. After the transaction, the report says Shotwell directly owned 2,472,035 shares, valued at about $379,630,414.95, which marked a 12.16% decrease in the position. MarketBeat says the trade was disclosed in a Securities and Exchange Commission filing and was made under a pre-arranged Rule 10b5-1 plan.

The report also summarizes several analyst actions. Phillip Securities raised SpaceX from strong sell to strong buy on Friday, October 23. Wells Fargo & Company increased its price target from $214.00 to $274.00 and kept an overweight rating on Wednesday, October 21. Goldman Sachs reissued a buy rating and set a $245.00 target on the same day. DZ Bank began coverage on Friday, August 21 with a sell rating and a $100.00 target. Needham & Company LLC also reiterated a buy rating and set a $250.00 price objective on Wednesday, October 21. MarketBeat says four analysts rate the stock Strong Buy, thirty rate it Buy, nine rate it Hold and three rate it Sell, leaving the consensus rating at Moderate Buy with a consensus target of $244.97.

Company background from the report

MarketBeat identifies SpaceX, or Space Exploration Technologies Corp., as a privately held aerospace company founded in 2002 by Elon Musk. The article says it develops and operates launch vehicles and spacecraft aimed at lowering the cost of access to space and supporting commercial, government and scientific missions. It lists the Falcon 9 and Falcon Heavy rockets, the Dragon spacecraft and the Starlink satellite communications network as the company’s main products and services. The report says Falcon rockets launch satellites, cargo and crew, while Dragon supports transport to and from low Earth orbit.