Dear LUNR Stock Fans, Mark Your Calendars for Feb. 22


  • Shares of lunar services provider Intuitive Machines (LUNR) soared higher on Tuesday.
  • The company’s Nova-C lander is scheduled to touch down on the moon on Feb. 22.
  • Speculators are betting against LUNR stock, setting up an intriguing battle.
LUNR stock - Dear LUNR Stock Fans, Mark Your Calendars for Feb. 22

Source: Schneider

While avid market proponents often talk about mooning assets, Intuitive Machines (NASDAQ:LUNR) takes that term to a literal level. On Tuesday, LUNR stock skyrocketed as the underlying company continues to achieve milestone targets.

According to a CNBC report, Intuitive shares jumped for the third consecutive session. At the moment, LUNR stock has surpassed its post-reverse-merger debut price of $10. Unlike a traditional initial public offering, the lunar services provider entered the open market via a business combination with a special purpose acquisition company or SPAC.

Just last month, sentiment was practically flipped, with LUNR stock trading near $2 a share. However, since the underlying company’s inaugural moon mission — called IM-1 — launched last week, Intuitive has enjoyed a stratospheric run.

And it’s not just based on pure speculation. As CNBC points out, Intuitive’s Nova-C lander (nicknamed Odysseus) has completed several of the 16 milestones that management targeted since its launch on a SpaceX rocket.

The flagship goal — landing on the surface of the moon — is scheduled to occur on Thursday, Feb. 22, at 5:49 p.m. Eastern.

Notably, the Nova-C lander is carrying 12 government and commercial payloads. Per CNBC, half of the launched equipment are for NASA under a $118 million contract.

Rising Relevance for LUNR Stock Clashes With Bearish Speculation

Fundamentally, one of the key directives of the IM-1 mission is to test the viability of low-cost private spacecraft to deliver science projects and cargo to the moon. This effort should increase with regularity in support of NASA’s Artemis crew program. Last year, the space agency announced the four astronauts who will fly around the moon in an upcoming mission, scheduled for late 2024.

Also, sentiment for LUNR stock rings high thanks to the broad scientific implications of a successful landing. Much science remains to be conducted on the moon, which can reveal insights into the earth’s geologic history. Further, lunar flights and data collection could inspire new technologies. Previous preparations for lunar flights yielded several benefits to society, including hand-held computers.

With rising ambitions comes the ultimate space industry goal: putting astronauts on the surface of Mars. Of course, before NASA can accomplish this gargantuan leap, it must make successfully make smaller steps first. Intuitive’s mission will go a long way in making the seemingly impossible task possible.

However, not everyone is convinced that LUNR stock will succeed, at least in terms of market dynamics. According to Fintel, LUNR’s short interest as a percentage of float comes in at 11.72%, which is elevated. Interestingly, the investment resource’s proprietary Short Squeeze Score rates the security at 90.54 out of 100. This score suggests a much higher than average risk of a short squeeze materializing.

Why It Matters

Despite pessimism, the analysts that have covered LUNR stock since May of last year have rated it a buy. However, among these targets, only one — Roth MKM’s Sujeeva De Silva — anticipates shares rising from their current level of $15.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

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