Kamal Ghaffarian, a director and significant shareholder of Intuitive Machines, Inc. (NASDAQ:LUNR), recently sold a substantial portion of his holdings in the company. According to a recent SEC filing, Ghaffarian disposed of 344,893 shares of Class A Common Stock on October 21 at a weighted average price of $8.0247 per share. This transaction amounted to approximately $2.77 million.
The sales were conducted through Ghaffarian Enterprises, LLC, under a Rule 10b5-1 trading plan. Following these transactions, Ghaffarian continues to hold a significant stake in the company, with 3,494,768 shares of Class A Common Stock remaining.
The filing also indicates other transactions involving Class C Common Stock and Common Units, although these did not involve any monetary exchange.
In other recent news, space exploration company Intuitive Machines has secured a series of significant contracts from NASA. The most notable is the Near Space Network Services (NSNS) contract, initially worth $150 million, with the potential to expand to $4.8 billion. Analysts from B.Riley responded to this development by upgrading their price target for Intuitive Machines from $8.00 to $12.00, while maintaining a Buy rating on the stock.
Furthermore, the company has reported a Q2 2024 revenue of $41.4 million, more than doubling the figure from the same period in 2023. This has led to an upward adjustment in its full-year revenue forecast to a range of $210 million to $240 million.
In addition to the NSN contract, Intuitive Machines has secured a $116.9 million contract from NASA to deliver six scientific and technological payloads to the Moon's South Pole. This is the fourth such award for the company under the Commercial Lunar Payload Services initiative.
Analyst firms Roth/MKM and Canaccord Genuity have maintained their Buy ratings on the company's stock, with Canaccord Genuity maintaining a price target of $11.00 and Roth/MKM raising the target to $10.00 from the previous $7.00. These recent developments reflect the growing importance of Intuitive Machines in the space exploration industry.
InvestingPro Insights
While Kamal Ghaffarian's recent sale of Intuitive Machines (NASDAQ:LUNR) shares may raise eyebrows, it's essential to consider the broader financial picture of the company. According to InvestingPro data, LUNR's market capitalization stands at $1.1 billion, with the stock experiencing a remarkable 235.81% year-to-date price return as of the latest available data.
Despite the director's sale, LUNR has shown impressive revenue growth. InvestingPro data reveals a 130.13% quarterly revenue growth in Q2 2024, indicating strong business momentum. This aligns with an InvestingPro Tip suggesting that analysts anticipate sales growth in the current year.
However, investors should note that LUNR operates with negative profitability metrics. The company's gross profit margin stands at -9.58%, and it's not been profitable over the last twelve months. An InvestingPro Tip warns that LUNR suffers from weak gross profit margins, which could explain Ghaffarian's decision to reduce his stake.
For those seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for LUNR, providing deeper insights into the company's financial health and market position.
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