Investors interested in LUNR stock should refrain from adding it to their portfolio, considering its premium valuation.
Is red-hot Intuitive Machines (LUNR 2.40%) stock finally starting to cool off?
Intuitive Machines (LUNR 8.31%) stock rocketed higher in Monday's trading. The company's share price closed out the daily session up 8.3%, and had been up as much as 10.2% earlier in the day's trading.
Intuitive Machines CEO Stephen Altemus, joins 'Closing Bell Overtime' to talk its upcoming moon mission.
Intuitive Machines' stock has surged more than 300% since my initial recommendation, with a 91% return, maintaining my strong buy rating. The company will redeem 21.9 million warrants, potentially raising $250 million in cash, despite a 21% dilution to shareholders. The exercise will significantly boost cash per share from $2.22 to $3.61, supporting business growth and reducing dilution risk.
Shares of Intuitive Machines (LUNR 3.20%) are flying Friday. The stock had gained 4.4% as of 2:50 p.m.
Intuitive Machines: Buy In On The Huge $4.8 Billion Win
Space exploration has evolved dramatically since the first satellites were launched in the late 1950s.
A lot of things can change in a decade.
Investors interested in space stocks should refrain from adding LUNR to their portfolio right now, considering its premium valuation.
Intuitive Machines is progressing towards creating a lunar communications satellite constellation, backed by a $4b+ NASA contract that will pay out incrementally. Once in place, the lunar satellite constellation will generate services revenue on a pay-by-the-minute basis, providing LUNR with improved operating leverage. LUNR's backlog expanded by 48% sequentially to $136mm in Q3'24, with key contracts like the South Pole lunar delivery mission and NSNS.
In 2024, the space industry emerged as one of the most exciting investment themes, with small-cap aerospace and space technology companies outperforming broader markets. Stocks like Rocket Lab NASDAQ: RKLB, Intuitive Machines NASDAQ: LUNR, and Redwire Corporation NYSE: RDW have gained between 360% and 720% over the previous year, driven by impressive developments and growing investor enthusiasm.