SpaceX stock is likely to remain volatile in the near term.
SpaceX stock is likely to remain volatile in the near term.
Space Exploration Technologies (SPCX +1.32%) became the largest IPO on record in June. The stock has been highly volatile since, reaching highs of about $225.64 and lows of $104.83. How will the stock perform through the end of the year? That's hard to say. But one particular upcoming catalyst might drag down the share price. Here's what investors need to know.
The largest single-event stock lockup expiry to date
First, a little bit of background. When companies first go public, there are legal restrictions on when insiders can sell their shares. The period before that is called the lockup period. Many corporations first entering public equity markets opt for a set period -- often 180 days -- after which most or all company insiders are free to sell their shares.
SpaceX chose a staggered lockup schedule, meaning various blocks of shares would become eligible for sale over a little more than a year from the IPO date. Lockup expiry dates can present challenges to newly public companies. If insiders sell the corporation's shares in large quantities as soon as they are legally permitted, it could put downward pressure on the stock. SpaceX has faced this challenge on six occasions already. Here's how it has fared so far.
Overall, SpaceX has performed fairly well through its various lockup expiry dates so far. The stock has climbed about 27% since Aug. 6. However, the company is racing toward its largest single-event stock lockup expiry date yet.
Two full trading days after the company reports its third-quarter earnings (SpaceX’s third-quarter update is scheduled for Oct. 20), 1.3 billion new shares will become eligible for sale (328 million new shares will also unlock on Oct. 24).
SPCX Space Exploration Technologies
$147.96+$1.93 (+1.32%)
NASDAQ · As of 4:00 PM ET 10/19/26
Averytin News Financial update.