SpaceX President and Chief Operating Officer Gwynne Shotwell sold $52.5 million of company stock on September 22, ahead of Monday‘s Starship launch, the rocket’s first attempt to reach orbit.
It is the first significant stock sale by a SpaceX executive since the company listed on Nasdaq in June, according to TipRanks.
Sponsored
Sponsored
How the SpaceX Stock Sale Worked
A Form 4 filed with the Securities and Exchange Commission (SEC) on September 24 shows Shotwell first exercised stock options. Options let an employee buy shares at a fixed, older price.
She bought 342,170 shares at $8.40 to $19.40 each, a total cost of about $4.5 million. She then sold all of them the same day through Morgan Stanley at roughly $151 to $155 per share.
The trades ran under a Rule 10b5-1 plan she adopted on June 23, according to the filing. These plans lock in sale instructions ahead of time, so an executive cannot pick the day based on private news.
Shotwell Still Holds About $830 Million in Shares
After the sale, Shotwell holds 2.47 million Class A shares directly and 3.11 million through two family trusts. At Fridays $148.68 close, that stake is worth roughly $830 million.
SpaceX (SPCX) Stock Performance as of Fridays Close. Source: Yahoo Finance
The sale equals about 6% of her position. She also holds 575,005 unexercised options.
Sponsored
Sponsored
JUST IN: SpaceX President sells over $50M worth of $SPCX
Notably, however, the launch has already slipped once. SpaceX first set September 22 for the flight, which sent SpaceX stock up 6% on the news.
Shotwells plan predates the flight date by three months. A larger source of new supply is the lock-up, a rule that bars early holders from selling for set periods after an IPO.
About 328 million shares were freed on September 24, and the stock fell over 4% the day before, BeInCrypto reported. More unlocks are scheduled through June 2027.
The 33 analysts tracked by TipRanks rate SpaceX a Moderate Buy, with an average price target of $232.07, about 56% above Fridays close.
SpaceX Stock Forecast and Targets. Source: TipRanks
Still, SpaceX shares trade about 34% below their $225.64 high. Monday‘s launch and the next unlock are the stock’s next two tests.