HOUSTON—Kamal Ghaffarian, a director and significant shareholder of Intuitive Machines, Inc. (NASDAQ:LUNR), has sold a substantial portion of his holdings in the company, according to a recent SEC filing. The transactions, which took place on December 30, 2024, involved the sale of Class A Common Stock valued at approximately $6.94 million. The sale comes as the space technology company, now valued at $2.55 billion, has seen its stock surge over 670% in the past year. InvestingPro analysis indicates the stock is currently trading above its Fair Value.
The shares were sold in multiple transactions at prices ranging from $17.9644 to $18.7892 per share. After these transactions, Ghaffarian retains a significant stake in the company, with 3,494,768 shares of Class A Common Stock still held by Ghaffarian Enterprises, LLC, a company he controls. According to InvestingPro data, LUNR has demonstrated remarkable momentum, with a 370% price return over the past six months. Subscribers can access 12 additional ProTips and comprehensive financial analysis for LUNR.
The sales were executed under a pre-established trading plan adopted by Ghaffarian Enterprises, LLC, in compliance with Rule 10b5-1. This rule allows major shareholders to sell a predetermined number of shares at specified times, providing a systematic method for reducing holdings while minimizing potential accusations of insider trading.
In addition to the stock sales, the filing also noted other changes in Ghaffarian’s holdings. On December 31, 2024, Ghaffarian Enterprises, LLC, gifted 570,000 Common Units to a charitable trust. The recipient subsequently redeemed these units for an equal number of Class A Common Stock, leading to the cancellation of 570,000 shares of Class C Common Stock previously held by Ghaffarian Enterprises, LLC.
Intuitive Machines, Inc., a Houston-based aerospace company, specializes in developing advanced space technologies. The recent stock transactions reflect Ghaffarian’s ongoing involvement and investment strategy in the company. While the company maintains strong liquidity with a current ratio of 1.77 and holds more cash than debt, InvestingPro data shows it faces challenges with weak gross profit margins of 2.88%.
In other recent news, Intuitive Machines, a space exploration and infrastructure company, has been making significant strides in its financial performance and lunar exploration endeavors. The firm’s Q3 2024 revenue soared to $58.5 million, marking a 359% increase from the previous year, largely attributed to lunar delivery missions and the acquisition of the Near Space Network Services (NSNS) contract. This contract could potentially contribute up to $4.82 billion over the next decade.
The company recently priced a public offering of approximately 9.52 million shares, managed by underwriters including BofA Securities, Cantor Fitzgerald, Barclays (LON:), Stifel, and Roth Capital Partners (WA:). Concurrently, a private placement agreement was made with Boryung Corporation for the sale of additional shares. The combined net proceeds from both the public offering and the private placement are anticipated to be around $104.25 million.
Canaccord Genuity adjusted its price target for shares of Intuitive Machines to $17.50 from the previous $19.00, while reiterating a Buy rating on the stock. The revision reflects the anticipated impact of recent equity offerings on the company’s financials. The analyst from Canaccord Genuity stated that the new price target takes into account the dilution effect of the equity offering.
Benchmark raised the stock price target for Intuitive Machines Inc. to $16, up from the previous $10, while maintaining a Buy rating on the company’s stock. The adjustment comes as Benchmark shifts its valuation year to FY25, applying a 5.7x EV/revenue multiple. The analyst at Benchmark highlighted Intuitive Machines’ effective commercial model in space infrastructure, which recently secured a significant $4.8 billion NASA’s Space Network (NSN) contract in the third quarter of 2024.
Intuitive Machines also announced its upcoming lunar missions, IM-2, IM-3, and IM-4, as part of a broader strategy to establish a sustained presence on the Moon and provide commercial lunar transportation services. The company’s financial health remains strong, boasting a record cash balance of $89.6 million, a substantial backlog valued at $316.2 million, and zero debt on the books.
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