Space Exploration Technologies Corp (NASDAQ:SPCX) is hitting a 90-calendar-day early-release milestone that unlocks a large tranche of insider shares for sale, potentially adding significant selling pressure.
About 7% of early release-eligible insider shares — roughly 319 million shares — become eligible for sale on Wednesday, representing up to $47.2 billion in potential insider selling pressure based on the Sept. 4 closing share price of nearly $148.
See More: Top Momentum Stocks
SPCX Faces Resistance at $150 Level
SpaceX shares have been trending higher, but face resistance around the $150 level. This resistance is attributed to previous support levels where sellers have placed orders to break even.
If buyers manage to overpower sellers and push the price above this resistance, it could signal a breakout, potentially setting the stage for a move higher.
Previous Share Unlocks Show Resilience
SpaceX has already weathered two rounds of insider share unlocks since its record-breaking June initial public offering. Despite these events, the stock has remained well above its IPO price of $135.
The first unlock on Aug. 6 saw shares rally instead of decline, while a second, smaller unlock on Aug. 20 caused only a temporary wobble.
As of Tuesday, SpaceX shares were still trading comfortably above the IPO price, raising questions about whether the third unlock will maintain this resilience or test investor demand.
Image: Shutterstock
Login to comment