MW Space stocks climb again as 'momentum sector' drives gains
By James Rogers
Space-based broadband company AST SpaceMobile is among the stocks that have resumed their recent rally
Space stocks were climbing again Wednesday as the sector resumed its recent rally against a backdrop of several high-profile launches.
"No shortage of momentum sectors right now," wrote Connor Bates, associate portfolio manager at Revere Asset Management, on social-media platform X on Wednesday - highlighting space stocks Intuitive Machines Inc. (LUNR), AST SpaceMobile Inc. $(ASTS)$ and Rocket Lab USA Inc. $(RKLB)$
The commercial space sector is garnering plenty of attention as of late. Space stocks rose earlier this week following SpaceX's successful fifth Starship flight test last weekend, and the spotlight has continued this week. On Monday, NASA's Europa Clipper launched atop a SpaceX Falcon Heavy rocket on a mission to Jupiter, where it will investigate the planet's moon Europa.
Related: Space stocks rise after SpaceX captures booster in fifth Starship flight test
While privately held SpaceX has had a busy few days, shares of the heavily shorted space-based broadband company AST SpaceMobile were up 8.7% Wednesday on no apparent news.
The stock, which is trading around $26.37, was on pace for its highest close since Sept. 23, when it ended trading at $26.61. AST SpaceMobile shares were also set for their largest percent increase since Oct. 4, when they rose 12.45%, Dow Jones Market Data show.
Short interest as a percentage of AST SpaceMobile's public float of shares is 37.22%.
Related: In an engineering feat, mechanical SpaceX arms catch Starship rocket booster back at the launch pad
The company has been in the spotlight recently, notably during last month's milestone launch of its first five commercial satellites. The satellites each feature the largest-ever commercial communications arrays to be deployed in low-Earth orbit, according to AST SpaceMobile.
BlackRock, the world's largest asset manager, recently increased its AST SpaceMobile holdings to 8.57 million shares.
In a recent investor presentation, AST SpaceMobile said that it will offer "multiple potential ways for cellular subscribers to access more and better connectivity." These include a broadband day pass where subscribers receive a text on their phone asking if they would like to turn on SpaceMobile service, and a fixed monthly rate to add SpaceMobile as a supplemental service to an existing cellular plan.
Related: These space stocks deserve attention, analysts say
Other space stocks were also climbing Wednesday. Shares of space-exploration company Intuitive Machines were up 1.6%, while Rocket Lab's stock was up 10.1%. Shares of Redwire Corp. $(RDW.UK)$, which manufactures and supplies space equipment, were up 7.2%, and shares of space-services company Momentus Inc. (MNTS) were up 7.9%.
KeyBanc Capital Markets recently raised its Rocket Lab price target, citing the company's ability to scale its business and its strong position in launch services and satellite manufacturing and design.
Away from launch and space-exploration stocks, space-tourism company Virgin Galactic Holdings Inc. $(SPCE)$ was up 3.6% Wednesday.
-James Rogers
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
October 16, 2024 14:37 ET (18:37 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
Comments