Intuitive Machines—first private firm to land on moon, soars 66% on winning NASA deal; stock up 3x YTD

Intuitive Machines Inc. shares soared 66 per cent on Wednesday, September 18, after the space exploration firm said it won another contract from NASA worth as much as $4.8 billion. The stock of the first private company to land a spacecraft intact on the moon recorded its biggest intraday jump in 18 months. 

The stock price of Intuitive Machines has more than tripled since the start of the year after the Houston-based firm was awarded a series of NASA accords. The latest contract is for communication and navigation services for missions in the near-space region, from the Earth’s surface to beyond the Moon. 

Also Read: Wall Street today: US stocks trade in green as Fed cuts benchmark rates, dollar drops

Intuitive Machines wins NASA deal

In August, the company won a NASA contract to deliver science and technology payloads and was one of three companies to receive a contract to develop vehicles that astronauts may drive on the lunar surface in April.

The first set of task orders for the contract will be about $150 million — the deal has a base period of five years with an added five-year option period for a total maximum potential value of $4.8 billion. 

As part of the contract, Intuitive Machines will introduce lunar satellite data and transmission services — which the company sees as a key for its goal to commercialize lunar activities.

Also Read: NASA-Boeing astronaut Butch Wilmore on Starliner’s return: ‘We found some things we just could not get comfortable with’

Intuitive Machines stock has been whipsawed this year and — despite the recent surge — remains more than 20 per cent below a February peak following its moon landing. Wall Street is bullish on shares of Intuitive Machines, with all five analysts tracked by Bloomberg rating the company as the equivalent of a buy. 

The average 12-month price target of $9.80 implies that the stock could climb roughly another 18 per cent from where shares currently trade. “This contract marks an inflection point in Intuitive Machines’ leadership in space communications and navigation,” said Steve Altemus, CEO of Intuitive Machines CEO said in a statement.

Also Read: Boeing silent amid Starliner rift speculation, but NASA hopeful of its commitment: What we know so far