• The pricing details and the number of shares to be offered were not disclosed.
• Shares of companies from the sector have been rallying in recent months, benefiting from optimism surrounding SpaceX's upcoming public listing.
• Recently, Roth Capital raised its price target on LUNR shares to $75 from $50 while maintaining a ‘Buy’ rating.

Shares of Intuitive Machines (LUNR) crashed in current trading session after the company disclosed in a Securities and Exchange Commission filing that it plans to sell up to $500 million in stock.

Pricing details for the stock offering or the number of shares to be offered have not yet been publicly disclosed by the company. 

LUNR shares last closed at $35.97 on Tuesday. At the time of writing, LUNR stock was down more than 15% on Wednesday.

LUNR’s Offering

The company stated in the SEC filing that it intends to use the net proceeds from the offering to purchase a number of common units from its operating company, for a total of $500 million.

The operating company will, in turn, use that money for general corporate purposes, including research and development, potential strategic mergers or acquisitions, new services or technologies, working capital, and capital expenditures, among other things.

Space Stocks’ Rally

Intuitive Machines and peers in the sector have been rallying in recent months, benefiting from optimism surrounding SpaceX's upcoming public listing. Elon Musk’s company is expected to shatter records by raising more than $86 billion at nearly $2 trillion valuation, making it the largest initial public offering in U.S. history.

Last week, the company took investors on a rollercoaster ride, with a rip-and-dip share price action, rallying on broader space-sector excitement and then tanking on news that it had been left out of NASA's initial selection of lunar rover contractors. 

Following that, Roth Capital raised its price target to $75 from $50 while maintaining a ‘Buy’ rating, noting that the company is poised to benefit from significant opportunities in upcoming lunar contract awards for landers, rovers, and broader infrastructure services as NASA builds its Moon Base.

What Do Retail Traders Think About LUNR?

On Stocktwits, retail sentiment about LUNR continued to remain in ‘bullish’ territory over the last 24 hours. 

One bullish user on the platform said Intuitive Machines is going through “an impressive run of bad luck,” citing the recent Blue Origin rocket explosion, the pullback in the sector peer Virgin Galactic’s (SPCE) shares, and its exclusion from the first phase of NASA’s Moon Base contract awards.

Another user called the current price action an overreaction.

LUNR stock has more than doubled so far this year and tripled in value over the past 12 months, outperforming the S&P 500.

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