In a recent SEC filing, Kamal Ghaffarian, a director and significant shareholder of Intuitive Machines, Inc. (NASDAQ:LUNR), reported the sale of Class A Common Stock valued at approximately $596,077. The shares were sold at an average price of $8.0282 each, in transactions executed on November 6, 2024.
These sales were conducted under a pre-arranged trading plan, known as a Rule 10b5-1 plan, which was adopted by Ghaffarian Enterprises, LLC earlier this year. This plan allows insiders to sell a predetermined number of shares at a set time, providing a measure of protection against accusations of insider trading.
Ghaffarian, who holds significant shares through various entities including Ghaffarian Enterprises, LLC, GM Enterprises, LLC, and Intuitive Machines KG Parent, LLC, continues to maintain a substantial position in the company following these transactions.
In other recent news, Intuitive Machines Inc. has been making significant strides in its space exploration endeavors. The company has secured a substantial $4.82 billion Near-Space Network (NSN) contract from NASA, a development that analyst firms such as B.Riley, Roth/MKM, and Canaccord Genuity have responded to by maintaining their Buy ratings on the company's stock. This contract, along with a $116.9 million contract to deliver six scientific and technological payloads to the Moon's South Pole, is expected to significantly boost the company's future revenues.
The NSN contract, which includes deploying relay satellites into lunar orbit, has been described as transformational for Intuitive Machines. B.Riley has adjusted its financial projections for the company in light of these developments, raising the FY26 revenue and EBITDA estimates from $496 million/$40 million to $507 million/$42 million.
In addition to these contracts, Intuitive Machines reported a Q2 2024 revenue of $41.4 million, more than double compared to the same period in 2023, leading to an upward adjustment in its full-year revenue forecast to a range of $210 million to $240 million. These recent developments have solidified the company's position as a key player in space exploration services, with the potential for substantial growth in the future.
InvestingPro Insights
Intuitive Machines, Inc. (NASDAQ:LUNR) has been experiencing significant market momentum, as evidenced by its strong performance across various timeframes. According to InvestingPro data, LUNR has seen a 17.39% return in the past week and an impressive 206.11% return over the last year. This upward trajectory aligns with the recent insider selling activity reported by director Kamal Ghaffarian.
The company's stock volatility, highlighted as an InvestingPro Tip, may explain the strategic use of a Rule 10b5-1 plan for Ghaffarian's stock sales. This approach allows for more predictable trading patterns in a stock that "generally trades with high price volatility."
Despite the positive stock performance, InvestingPro Tips indicate that LUNR "suffers from weak gross profit margins" and is "not profitable over the last twelve months." This is reflected in the company's financial metrics, with a gross profit margin of -9.58% and an operating income margin of -39.11% for the last twelve months as of Q2 2024.
Interestingly, analysts anticipate sales growth in the current year, which could potentially impact the company's valuation. Currently, LUNR is "trading at a high revenue valuation multiple," with a market capitalization of $1.22 billion USD against revenues of $157.77 million USD for the last twelve months.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for LUNR, providing a deeper understanding of the company's financial health and market position.
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